An analysis of the EU governance framework for corporate reporting
The European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) has recognised the importance of companies reporting accurate information for the efficient operation of financial markets in its recent consultation on the quality of corporate reporting.
In particular, in its Call for Evidence on the quality of corporate reporting, DG FISMA states: ‘Corporate reporting by listed companies is the bedrock of capital markets as it gives investors the essential information they need to make sound investment decisions such as information about the financial situation of companies’, and that ‘High-quality and reliable corporate reporting by listed companies is of key importance for the efficiency of EU financial markets’.
DG FISMA’s consultation concerns three pillars of corporate reporting: (i) corporate governance; (ii) statutory audit; and (iii) the supervision of statutory auditors and audit firms. This study, commissioned by the European Contact Group, focuses on the first pillar.
A summary of the findings can be found in the presentation delivered by Oxera Chair and Partner, Dr Luis Correia da Silva, at an event hosted by the European Contact Group in Brussels.