Britain’s financial and corporate governance regulators have told external audit firms to be more skeptical, claiming they let down investors, regulators, and “society at large” by failing to challenge management in the run-up to the financial crisis. A joint paper from the Financial Services Authority and the Financial Reporting Council also called on audit firms […]
Global Glimpses
Posted inEurope
Europe Starts Overhaul of Market Abuse Directive
The European Union is planning to toughen its rules on insider dealing and wider market abuse in an effort to plug gaps in the way its current directive on the issue is enforced. The trading bloc agreed a directive in 2003 that was meant to usher in a common approach to market abuse among its […]
Posted inAccounting & Auditing
New Zealand Fraud Busters Tackle Top Businessman
New Zealand’s recently overhauled Serious Fraud Office has shown its intent to tackle white collar crime, launching an investigation into one of the country’s wealthiest businessmen. The SFO has started to probe the affairs of Allan Hubbard related to his Aorangi Securities mortgage company and seven charitable trusts. The government has appointed two independent accountants […]
Posted inBoards & Shareholders
Eight EU Members Fail on Shareholder Rights
The European Commission has started legal action against eight of its 27 member states – including France and Spain – for failing to implement a directive aimed at protecting shareholder rights. The countries have all missed an August 2009 deadline to transfer the European Shareholders’ Rights Directive into their national laws. The directive says shareholders […]
Posted inAccounting & Auditing
Review Questions Audit Report Value
Bank shareholders value the external audit process but feel the audit firm’s end report is just a bland compliance statement that carries no useful information, according to a review by the Institute of Chartered Accountants in England and Wales (ICAEW). The review said investors felt the audit process was “essential in imposing discipline upon directors’ […]
Posted inAccounting & Auditing
U.K. Fails to Break Big Four Audit Grip
Regulatory efforts to increase choice in the U.K.-listed company audit market have had little or no effect, according to a report from the Financial Reporting Council, the country’s corporate regulator. The FRC published a series of recommendations in October 2007 aimed at making the market for listed company audits more efficient and encouraging the use […]
Posted inAccounting & Auditing
Europe Starts Financial Sector Governance Reform
The European Commission has launched a review of the corporate governance rules followed by financial firms in its 27 member states. A wide-ranging Green Paper floats a series of potential governance reforms, including new duties for directors, better risk reporting, and a wider remit for external auditors. The paper argues, “Although corporate governance did not […]
Posted inAccounting & Auditing
Governance Gets Personal Under New U.K. Code
The directors of the top 350 U.K.-listed companies will face re-election every year, instead of holding the typical three-year tenure, under a revised version of the country’s influential corporate governance code. The new code released today says performance-related pay should be aligned to the long-term interests of the company and its risk policy. And it […]
Posted inEurope
Europe Busts First Cartel With New Plea Powers
The European Commission has reached its first cartel-busting settlement under “fast track” procedures introduced two years ago. Under the deal, ten companies that produce memory chips have agreed to pay fines totaling €331 million ($409 million). The companies were involved in price-fixing between 1998 and 2002. Samsung will pay the biggest single penalty in the […]
Posted inEurope
German Ban Dents European Regulation
Germany undermined European efforts to maintain a coordinated response to the financial crisis in Greece and to market regulation more widely this week when it took unilateral action to clamp down on short-selling. The country’s financial regulator, BaFin, surprised other regulators when it announced a ban on “naked” short-selling transactions in government euro-zone bonds and […]