• Register
Return to: Home > News > Regulation > ESMA identifies improvements in financial information enforcement

ESMA identifies improvements in financial information enforcement

The European Securities and Markets Authority (ESMA) has identified three areas where national competent authorities (NCAs) can improve financial information enforcement.

The three areas of improvement and ESMA’s recommendations supporting these improvements are based on a peer review in the form of a questionnaire sent to all NCAs and on-site visits made to seven countries:  Germany, Italy, Malta, Norway, Portugal, Romania, and the UK.

The three key areas for improvement according to ESMA are how issuers are selected to examine their financial information, the depth of inquiries into financial statements going beyond correcting disclosure and the allocation of financial and human resources by NCAs to enforce financial information.

Five jurisdictions (Malta, Portugal, Romania, Sweden and the UK) have been identified as not fully compliant with ESMA Guideline 5 under which NCAs are required to use selection models where all issuers are eligible to be selected for scrutiny.

In some jurisdictions there is a risk that insufficient resources are allocated to enforcement, according to ESMA chair Steven Maijoor.

“Additionally, in some jurisdictions there is a tendency to focus on disclosure issues instead of in-depth inquiries into valuation issues,” he added.

ESMA made a number of recommendations to help NCAs tackle the issue and improve these key areas. These are accessible here.

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.