The European Commission has set up a European Forum to gather market players’ views on limiting financial burdens for auditors. The Forum will consider market-led solutions to mitigate litigation risks. The Forum comprises twenty market experts from various professional backgrounds (such as auditors, bankers, investors, companies, insurers and academics) with particular experience and knowledge of the subject.
As part of the 8th Company Law Directive on statutory audit, the Commission intends to issue before the end of 2006 a report which will examine the impact of liability rules for carrying out statutory audits on European capital markets and insurance conditions. If appropriate, it will be followed by recommendations to Member States. As a first step, early in 2006 the Commission will launch a study on the economic impact of alternative liability regimes, competition in the market and availability of insurance. The forum will provide data for this study and will give feedback on new developments. The results of this study will be available in autumn 2006.
FEE Vice President, Klaus-Günter Klein, is a member of the Forum.