ESMA publishes its 2017 annual report that provides an overview of the enforcement and regulatory activities of ESMA and the accounting enforcers in the EU, when examining compliance of financial information provided by issuers, under IFRS, in 2017. It also provides an overview of the main activities performed at European level, quantitative information on enforcement activities in Europe, and contribution of ESMA to the development of the single rulebook in the area of corporate reporting.
In 2017, ESMA and European Enforcers continued to engage in regular supervisory convergence activities on IFRS. Moreover, considering the new standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers, in October 2017, ESMA published the results of a separate fact-finding exercise on the transitional disclosures regarding these standards. ESMA also conducted a peer review on the application of its Guidelines of Enforcement of Financial Information by the national competent authorities. During 2017, national enforcers reviewed the financial statements of about 1,100 issuers (approximately 19% of issuers of securities listed on EU regulated markets), which led to action against 328 (32%) of the issuers examined. Among those, for the purpose of assessing compliance with the 2016 European Common Enforcement Priorities, EU enforcers scrutinized the financial statements of 204 listed issuers. The examinations resulted in enforcement actions against 56 issuers (27%) related to the enforcement priorities assessed. The other areas where most infringements were identified by European enforcers remained the same comparing with 2016 and 2015 and related mainly to presentation of financial statements, accounting for financial instruments, and impairment of non-financial assets.
In 2018, the accounting enforcers will focus on the disclosure of the expected impact of the implementation of the new standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers in the period of their initial application. Furthermore, in light of the emphasis on transitioning to a sustainable financial system in the EU and the new requirements on the disclosure of non-financial information, ESMA will coordinate the enforcement activities related to both non-financial and corporate governance information.
Keywords: Europe, EU, Securities, Accounting, Enforcement Activities, IFRS 9, Reporting, Supervisory Convergence, ESMA
Previous ArticleBoE Consults on Working Draft of Standalone MREL Reporting Taxonomy
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.