Eumedion calls for European supervision on financial reporting and audit firms
News · 30-06-2020
The Wirecard accounting scandal underlines the need to
introduce European supervision on the financial reporting of European listed
companies and on audit firms. Listed companies and audit firms apply
international standards. At least European enforcement is necessary to create
consistency in how these international standards are applied by European listed
companies and audit firms. Eumedion has incorporated this call in its response,
submitted today, to the final report of the High-Level Forum on the Capital
Market Union. Three weeks ago, this High-Level Forum submitted its final
recommendations on finalising the creation of a European Capital Markets Union
to the European Commission. The European Commission will present a concrete
action plan later this year.
In the final report, Eumedion lacks the recommendation for the
creation of a single European supervisor on financial reporting and audit
firms. Eumedion believes that this European single supervisor is a crucial part
of completing the European Capital Market Union. The response further shows
that Eumedion supports most of the clusters of recommendations from the
High-Level Forum. However, Eumedion is concerned about some proposals on
improving the public markets ecosystem. According to the High-Level Forum, newly
listed companies should have a choice to opt for dual-class shares with
variable voting rights. The Forum also recommends to alleviate the Market Abuse
Regulation. Eumedion opines that these recommendations would severely damage
investor protection and therefore investors’ trust in European stock markets.