Financial transparency: Creating a single EU access point for company information
The European Commission (EC) has proposed that by the end of 2024, the European Securities and Markets Authority (ESMA) sets up a European Single Access Point (ESAP). The EC is inviting feedback on this by early 2022.
ESAP will centralise on a single platform all the regulatory information on activities and products that financial players must provide to supervisors. It will also allow non-listed entities, including SMEs, to make available information on a voluntary basis.
The aim of this initiative is to centralise and present information in an easy to compare digital format. This will enable investors, financial analysts and intermediaries, public authorities, and civil society to have a better understanding of the capital market and make informed decisions.
ESAP does not introduce new reporting obligations but builds on the disclosure requirements in the current EU financial legislation, including audit legislation.
There are proposals, for example, for the following information to become accessible via ESAP in regard to auditors (from 2026):
- Public register of auditors
- Sanctions imposed by the competent authorities
- Transparency reports
In addition, large undertakings might be asked to submit, for example, their financial statements, management report and audit report to a national collection body to make them accessible via ESAP (from 2025).
Auditors in scope of DORA following European Parliament’s ECON vote
The Digital Operational Resilience Act (DORA) was adopted on 1 December 2021 in the European Parliament’s Committee on Economic and Monetary Affairs (ECON) with 44 in favour, 5 against and 5 abstentions.
Almost all political groups voted in favour of the compromise amendment to keep auditors in the scope but with an exemption for certain smaller audit practices.
Next step is for the European Parliament to negotiate with the Council (which proposes to exclude auditors completely) to find a mutually agreeable compromise.
Read more (adopted ECON position on DORA)