Germany to sever ties with accounting watchdog after Wirecard scandal By Reuters

Germany to sever ties with accounting watchdog after Wirecard scandal


© Reuters. FILE PHOTO: The headquarters of Wirecard AG is seen in Aschheim near Munich

BERLIN (Reuters) – The German government plans to terminate its contract with the country’s accounting watchdog after payments company Wirecard filed for insolvency last week in one of Germany’s biggest fraud scandals, a government official said on Sunday.

Bild am Sonntag newspaper reported earlier on Sunday that the Justice and Finance Ministries would on Monday cut ties with the Financial Reporting Enforcement Panel (FREP), a quasi-private entity that supervises the financial statements of listed firms.

“We have reached an agreement with the Finance Ministry to terminate the contract,” said the Justice Ministry official, who declined to be named or give further details.

The Finance Ministry declined to comment. FREP also declined to comment.

Wirecard collapsed on Thursday owing creditors almost $4 billion after disclosing a hole in its books that its auditor EY said was the result of a sophisticated global fraud.

The scandal has put the spotlight on Germany’s financial regulator BaFin, whose investigations into misconduct partly rely on FREP and is facing accusations of failing to supervise the financial technology company.

BaFin declined to comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME