SMPs in Singapore to receive grant

Small accounting firms in Singapore will receive a S$2.4 million (HK$13.8 million) boost to go digital, reported The Straits Times this month. The move is part of a new programme that aims to create 2,000 new accounting jobs in the next two years and help firms adopt new technologies and expand abroad. According to a census conducted by the Singapore Accountancy Commission, Big Four firms spent the most on technology while small- to-medium-sized firms spent the least mainly due to cost and a lack of knowledge, resulting in lower productivity. Lee Fook Chiew, Chief Executive Officer of the Institute of Singapore Chartered Accountants, said efforts to future-proof the accountancy profession are “especially vital in a time of rapid transformation and evolution of new skills.”

Record number of SFC licensees in Hong Kong

Financial firms licensed by the Securities and Futures Com- mission (SFC) rose to a record number at the end of March, according to data by the Hong Kong regulator. “The total number of [individual] licensees in Hong Kong reached a historical high of 44,238, up 3 percent from the previous year, while the number of licensed corporations surpassed the 2,700 mark,” said the SFC. Fund managers, private equity investors, brokers and other financial firms have been drawn to Asia’s third-largest financial market as a number of companies are expected to launch their initial public offerings in Hong Kong this year, reported the media. The surge has improved the finances of the SFC, which collects fees from every transaction in the market. The watchdog reported a fiscal surplus of HK$242.86 million for the year ended in March.

PwC U.K. to scrap all-male job shortlists

In a bid to improve the percentage of female executives in the office, PwC in the United Kingdom announced it will ban all-male job shortlists, starting this month. The pay gap between men and women is 44 percent at PwC U.K., the highest of the Big Four firms, according to the firm’s report on gender pay gap released in March. Laura Hinton, Chief People Officer at PwC U.K., was quoted as saying, “We are setting ourselves a 50/50 target for all direct recruitment activity. This is part of our wider action plan to promote diversity and inclusion in all forms, including gender, ethnicity and social mobility.”

Credibility of U.K. accounting watchdog to be reviewed

The United Kingdom’s business ministry formally launched a review of the country’s accounting regulator this month. “The FRC’s work is critical to financial markets, the economy and public confidence. Trust, quality and credibility are the questions at the heart of today’s consultation,” said John Kingman, who is chairing the review of the Financial Reporting Council (FRC). The FRC has long been scrutinized by lawmakers for being too slow in probing accounting scandals. The review will consider whether the FRC is using its existing powers sufficiently to levy fines and ban accountants involved in malpractice. It will also look at whether legislation is needed to give the watchdog stronger powers after the FRC said it cannot pursue company officials who are not members of professional accounting bodies, reported Reuters.

Trump threatens Harley Davidson with tax 

United States President Donald Trump threatened Harley-Davidson with tax on Twitter on 26 June, a day after the motorcycle maker announced it was moving some production to Asia to mitigate the impact of Trump’s tariffs on European steel and aluminum. Trump tweeted: “The Aura will be gone and they will be taxed like never before!” He was referring to tariffs Harley-Davidson would face on motorcycles produced overseas and shipped back to the U.S. for sale. Europe is Harley’s second-largest market. The company said that the 31 percent tariff the European Union is imposing on its motorcycles would raise the cost of each bike it ships from the U.S. by around US$2,200.

KPMG U.K. introduces yoga to fight stress

KPMG U.K. has added yoga to its three-day training programme in a bid to help its staff reduce stress. The programme, called KPMG audit university, will focus on audit quality and involve sessions on resilience and management alongside wellbeing, according to Economia. “Auditors are under significant pressure to perform and I think stress levels are increasing,” said Michelle Hinchcliffe, Head of Audit at the firm in the United Kingdom, who set up the programme. “The leadership have to help staff to deal with the criticism over the quality of audits, both technically and mentally.” The course is open to new and current staff as well as partners from June until September.

Hong Kong tops IPO charts

Hong Kong initial public offerings (IPOs) have topped global rankings, with an estimated 98 IPOs in the first half of the year, according to EY’s Global IPO trends Q1 2018 report. The New York Stock Exchange saw 35 IPOs in the same period, according to CNBC. With Xiaomi planning to raise up to US$6.1 billion in its Hong Kong IPO and online services platform Meituan-Dianping’s IPO seeking over US$4 billion, EY forecasts a total of HK$200 billion in funds to be raised by IPOs in the city this year. Asia- Pacific IPO Leader at EY, Ringo Choi, said, “We expect that the second half will be a very, very busy time for us.”

Cristiano Ronaldo settles tax fraud charges

Footballer Cristiano Ronaldo agreed to a two-year suspended jail sentence and a €18.8 million (HK$171.5 million) fine to settle tax evasion charges. Prosecutors in Spain accused the Real Madrid footballer of defrauding the authorities of €14.8million (HK$135.2 million) in unpaid taxes between 2011 and 2014. He has denied the allegations. According to Reuters, the Portuguese player is unlikely to serve the prison sentence due to a Spanish rule that allows first offenders to serve probation if the sentence is fewer than two years. Ronaldo, who plays for his national team, was informed of the heavy fine before a World Cup match against Spain.