Germany is overhauling its framework for accounting oversight following a financial scandal at Wirecard AG and is canceling the existing regulator’s contract after 2021. The Federal Ministry of Justice and Consumer Protection is working on a new regulatory setup together with the Federal Ministry of Finance, a spokesman for the justice ministry said. It is important to ensure effective control at all times,” the spokesman for the justice ministry said. The BaFin spokeswoman declined to say if BaFin would take over accounting oversight at nonfinancial institutions, replacing FREP. The current debate in Germany about accounting oversight at Wirecard mirrors a similar situation in the U.K., in which the government is working to overhaul the existing regulatory framework following a string of corporate failures.
Source: Wall Street Journal June 29, 2020 21:22 UTC