EU watchdog urges tighter rules to prevent another Wirecard scandal
European Union rules on company financial information need to be updated to apply the lessons of the collapse of German payments firm Wirecard, the bloc’s securities watchdog said on Wednesday.
The European Securities and Markets Authority (ESMA) said in a report in November there were deficiencies in how Germany’s securities and accounting watchdogs cooperated regarding Wirecard, the country’s biggest accounting scandal.
“ESMA considers that the Wirecard case has shown, once again, that timely and effective enforcement of financial information is paramount to ensure investor protection and confidence in capital markets,” ESMA Chair Steven Maijoor said in a letter to the EU’s financial services chief Mairead McGuinness published on Wednesday.
In the letter, ESMA set out proposed reforms to eliminate the barriers to regulators sharing confidential information about a company, and to clarify which body is responsible for enforcement.