1 / 19

CESR-Fin Standing Sub–Committee on Enforcement

World Bank Conference Advanced Program in Accounting and Auditing Regulation 8. November 2005. CESR-Fin Standing Sub–Committee on Enforcement. Lars Østergaard Chairman of SCE/EECS. Overview EU-regulation on IAS and enforcement CESR Standard no. 1 on Enforcement

kailey
Download Presentation

CESR-Fin Standing Sub–Committee on Enforcement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. World Bank ConferenceAdvanced Program in Accountingand Auditing Regulation 8. November 2005 CESR-Fin Standing Sub–Committee on Enforcement Lars Østergaard Chairman of SCE/EECS

  2. Overview EU-regulation on IAS and enforcement CESR Standard no. 1 on Enforcement CESR Standard no. 2 on Coordination of Enforcement CESR Guidance Paper on Coordination European Enforcement Coordination Sessions (EECS) Other work on enforcement

  3. EU Regulation on IAS recital no. 16: A proper and rigorous enforcement regime is key to underspinning investors´confidence in financial markets. Member States, by virtue of Article 10 of the Treaty, are required to take appropiate measures to ensure compliance with international accounting standards. The Commision intends to liaise with Member States, notably through the Committee of European Securities Regulators (CESR), to develop a common approach to enforcement.

  4. CESR on Financial Information CESR CESR-fin SISE SCE ATF EECS

  5. SCE • CESR Members • assisted by a technical advisor • A forum for exchange of views and experiences on methods for supervising the listed issuers • Instrumental in establishing standards • Support CESR–Fin in its role designated by the EU–Commission concerning enforcement of IAS/IFRS

  6. Standard no. 1 March 2003 21 principles definition of enforcement enforcers issuers and documents methods of enforcement including selection actions coordination of enforcement reporting

  7. Definition of enforcement Principle 1: – purpose: to protect investors and promote market confidence Principle 2: – monitoring compliance with reporting framework – taking measures if infringements

  8. Enforcers Independent from markets and government Necessary powers and resources Different models possible securities regulators review panels other bodies

  9. Actions To achieve appropiate disclosure Where relevant, public correction Material and non-material infringements Actions versus sanctions Similar actions where similar infringements

  10. Coordination Coordination will take place Material controversial issues will be conveyed to other bodies No general application guidance

  11. Standard no. 2 • April 2004 • Existing precedents should be taken into account • Where practicable discussion with other enforcers before decision • Details of decisions should be made available to other enforcers • Confidentiality regime • European Enforcers Coordination Sessions

  12. GuidancePaper • October 2004 • European Enforcers Coordination Sessions (EECS) • all enforcers whether or not CESR-members shall be members of EECS • main functions • analyse and discuss decisions taken or to be taken • identify issues not covered by standards • share and compare experiences • provide advice on enforcement issues • advice on public disclosure • agenda group

  13. Decisions • Ex-ante as well as ex-post • Non-actions as well as actions • Opinions if represent the official view (pre–clearances) • Conclusion that a treatment adopted is OK constitutes a decision

  14. Consultation • Consultation of the database is mandatory • If apparently contradicting decisions: normally discussion with enforcer who took the earlier decision • If apparently contradicting decisions: information of the agenda group

  15. The Database • Criteria • a material misstatement • cross border listings • apparently contradicting decisions • potential impact on European financial reporting • of interest to other enforcers • risk of significantly different treatments • significant impact on other issuers • taken on the basis of IAS 1 and 8 (no specific standard adresses the issue) • overruled by an appeals committee or court

  16. The Database (cont.) • Input • dates • financial reporting period • type of document • enforcer • issuer • issue • standard or requirement involved • description of treatment • rational for decision • details of action taken and effect • outcome of EECS discussion • status of decision • cross reference to precedents • auditor opinion • audit firm (optional)

  17. The Database (cont.) • Confidentiality • omitting the name of the issuer and its group, capitalisation and details of sector • In English • Summary details • Relevant facts and circumstances • No deadline (“a reasonable time”)

  18. Meetings of EECS • Started in January 2005 • This year 7 meetings • So far mostly discussed decisions to be taken • 29 issues have been discussed - from 9 different countries - issues related to 17 different IAS/IFRS Standards and the Framework

  19. Other work on enforcement • Publication of enforcement decisions • Guidance paper on selection • Third country issuers • Powers • Co-operation with US-SEC

More Related