FEE approves comments to PCAOB on Auditor Independence and Audit Firm Rotation: FEE supports the aim of enhancing independence and objectivity of auditors since the independence of auditors is fundamental to public confidence in audited financial information. FEE is also of the opinion that professional scepticism could be enhanced even further to have audit quality at the highest level achievable. However, FEE believes that mandatory audit firm rotation would not be conducive to further enhancing professional scepticism. View

 

Consultation: Modernising the Professional Qualifications Directive: On 7January 2011, the DG Internal Market and Services published a Consultation document on the modernisation of the Professional Qualifications Directive (2005/36/EC). FEE responded in due course to the consultation. View The EC has now published a summary of responses on its website. View  As a result of the consultation, the Commission is expected to propose amendments to the directive in the coming weeks.

 

Micro-entities voted in EP plenary session: On 13 December, the plenary session of the European Parliament approved in second reading the legislative resolution on the proposed directive on annual accounts of micro-entities. 5 amendments to the common position of the EU Council were approved; mainly, the thresholds for the definition of micros have been increased up to 350.000 € balance sheet total, 700.000 € net turnover and 10 employees.

 

Michel Prada appointed as Chairman of the IFRS Foundation Trustees: The Trustees of the IFRS Foundation announced the appointment of Michel Prada as Chairman of the Trustees. Mr Prada, a former Chairman of the Executive and Technical Committees of IOSCO, is a highly respected advocate of investor protection and independent standard-setting. He brings significant experience of leading investor-focused international organisations. View

 

ESMA launches a consultation on possible delegated acts concerning the Prospectus Directive: The purpose of this consultation document from ESMA is to seek comments on the technical advice that ESMA proposes to give to the European Commission on a number of possible delegated acts. ESMA welcomes comments to this consultation paper by 6 January 2012. View

 

EBA publishes Recommendation and final results of bank recapitalisation plan as part of co-ordinated measures to restore confidence in the banking sector: The EBA published a formal Recommendation, and the final figures, related to banks’ recapitalisation needs. These measures form part of a broader European package, agreed by the European Council on 26 October and confirmed during the ECOFIN Council on 30 November, to address the current situation in the EU by restoring stability and confidence in the markets. View

 

EIOPA publishes a joint report on calibration of risk factors in the standard formula of Solvency II: EIOPA published the report of the Joint Working Group (JWG) “Calibration of the Premium and Reserve Risk Factors in the Standard Formula of Solvency II” related to the non-life and health-non-similar-to-life-technique (non-SLT) calibration. The JWG consisted of experts from supervisory authorities, the industry, the actuarial profession as well as observers from the European Commission (EC). The objective of the JWG was to discuss the most appropriate calibration methods and to derive recommendations to the European Commission on the setting of the premium and reserve risk factors. View