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.

Relevant documents

Eumedion response to the final repoft of the High-Level Forum on the Capital Markets Union


Final report High-Level Forum on the Capital Markets Union