Teaching from Wirecard: Scholz now relies on whistleblowers

Finance Minister Olaf Scholz (SPD), is in the Wirecard scandal increasingly under pressure, has developed an action plan with 16 points for better control. "We

Teaching from Wirecard: Scholz now relies on whistleblowers

Finance Minister Olaf Scholz (SPD), is in the Wirecard scandal increasingly under pressure, has developed an action plan with 16 points for better control. "We need to pull out of such scandals, the right to Teach and our rules, particularly in the areas of statutory audit and balance sheet control, regulatory structures and payment services don't re-sharpening, so that such cases in the future as possible", - stated in the six-sides slim paper.

Manfred Schäfers

economic correspondent in Berlin.

F. A. Z.

Like the SPD-politician has emphasized several times publicly, it aims at a more powerful supervision. He lists in his paper, among other things, the following measures: The two-stage "on the consensual participation of the audited company specific balance sheet control process" of a "stronger state-sovereign-influenced balance control procedures" will be replaced.

The financial Supervisory authority Bafin "needs a special audit right with respect to all capital market-oriented companies, including information rights against third parties, the possibility of forensic examinations, as well as the right to inform the Public earlier than previously about their approach to balance control". To check whether a privately organised verifier could take over in routine testing will continue to function.

A stronger Bafin

More points are according to the Plan of Scholz: "The state auditor Supervisory body (APAS) at the Federal office of Economics and export control is to get more bite, even with their Sanctions." He also wants to strengthen the independence of the auditor, "by providing for all public-interest entities a mandatory external auditor rotation after ten years". In addition, you'll exacerbate the separation between auditing and consulting services for these companies.

Other keywords are: examination of the civil liability of statutory auditors in case of violations of duty, of adjustments met at the Balance sheet and balance sheet offences and the "medium-term" development of market surveillance in the EU "European Securities and Exchange Commission (SEC)".

The German financial Supervisory authority wants to expand Scholz, regardless of the currently-discussed shortcomings in the case of Wirecard. "We will also examine how information from whistleblowers more can be used and how the incentives for whistleblowers can be improved."

Updated Date: 24 July 2020, 09:20

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