Council and Parliament reach a provisional agreement on ESAP
The Council and the European Parliament (EP) reached a provisional agreement on three proposals creating the European Single Access Point (ESAP) on 23 May.
To recall, the ESAP will create a single location to offer EU-wide access to public financial and sustainability-related information about EU companies and investment products.
European Parliament adopts Pandora Papers draft report
The EP Plenary adopted a draft report on Pandora Papers: lessons learned with 465 votes in favour, 5 votes against and 36 abstentions on 15 June. MEP Niels Fuglsang (S&D/Denmark) prepared the report.
The report puts forward EP’s recommendations for addressing issues identified in the October 2021 Pandora Papers scandal. The recommendations cover the role of tax intermediaries, harmful non-corporate tax regimes, misuse of shell entities, and more.
One of the recommendations calls on the European Commission (EC) and EU Member States “to further analyse and, where appropriate, address the potential conflicts of interest stemming from the provision of legal advice, tax advice and auditing services” and re-iterates EP’s previous “calls on the Commission to consider introducing measures to clearly separate accountancy firms from financial or tax service providers”.
The report’s recommendations are not legally binding. Still, EC will have to submit a response to EP within the next few months, explaining what action it intends to take.
CEAOB’s Inspection Sub-Group publishes inspection findings related to audits of banks and insurance companies
The Inspection Sub-Group (ISG) of the Committee of European Auditing Oversight Bodies (CEAOB) analysed inspection findings, based on data in its database, related to audits of financial institutions (banks and insurance companies) between 2018 and 2022.
This infographic summarises key findings and messages.
European Commission publishes a package of legislative proposals on payment services
The EC published a package of legislative proposals on 28 June, including a:
- proposal for a Regulation on payment services in the internal market. The EC will be tasked with drafting regulatory technical standards setting up “detailed and proportionate reporting and audit requirements”
- proposal for a Directive on payment services and electronic money services in the internal market. Article 11 of this proposed Directive says that the annual accounts and consolidated accounts of payment institutions shall be audited by statutory auditors or audit firms
As a next step, the Council and EP will develop their own positions on the proposals, a process that will take a few months. Subsequently, both institutions will need to find a compromise which will eventually become the final EU law.