adaderana118d ago
The Securities and Exchange Commission of Sri Lanka (SEC) and the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) enhanced cooperation in the oversight of financial reporting and auditing standards by signing a Memorandum of Understanding (MOU) recently.The MOU was signed by Senior Prof. D.B.P.H. Dissabandara, Chairman of the SEC, and Mrs. K.M.A.N. Daulagala, Chairperson of the SLAASMB.The agreement establishes a formal framework for collaboration between the two institutions in relation to Entities licensed under the SEC Act to operate a stock exchange, to carry on business as stock brokers and stock dealers, unit trusts, fund management companies and listed companies.Under the MOU, the SEC will continue to scrutinize annual reports and financial statements of Entities in terms of the applicable regulatory rules and the disclosure requirements of Sri Lanka Accounting Standards (LKASs/SLFRSs). The SLAASMB will examine compliance of the same Entities with Sri Lanka Accounting Standards and Sri Lanka Auditing Standards.Both institutions have agreed to maintain a structured information-sharing mechanism. The SEC will keep the SLAASMB informed of material non-compliance with accounting standards, relevant regulatory decisions, matters concerning auditors, and findings of investigations that may impact financial statements. Similarly, the SLAASMB will keep the SEC informed of non-compliance by Entities or their auditors, investigations initiated, final findings, and directions issued relating to financial reporting.The MOU also provides for the referral of complaints relating to non-compliance with accounting and auditing standards, ensuring that such matters are addressed promptly under the relevant statutory framework. In addition, the two organizations will collaborate on joint public awareness initiatives aimed at promoting transparency in financial reporting and strengthening corporate governance practices.The agreement preserves the statutory independence of both institutions, operates on a non-exclusive basis, and includes strict confidentiality provisions governing the handling of sensitive information.This partnership reflects the shared commitment of the SEC and the SLAASMB to enhancing investor confidence, strengthening market integrity, and promoting high standards of financial reporting in Sri Lanka’s capital market.
