Wirecard Scandal Prompts EU to Weigh Corporate Reporting Fixes

(Bloomberg) -- The European Commission is examining how it can improve rules for ensuring that companies report reliable financial information after Wirecard AG’s collapse served as a “wake-up call.”

The European Union’s executive arm will start a public consultation later this year and intends to present a legislative proposal toward the end of next year, Commissioner Mairead McGuinness said, according to the text of a speech to be delivered to the European Policy Center on Thursday.

Investors lost about 20 billion euros ($24.4 billion) when Wirecard imploded last year after saying cash amounting to a quarter of its balance sheet probably never existed. The scandal exposed shortcomings at auditors and regulators who failed to catch Germany’s biggest corporate fraud in decades.

Read more about the Wirecard fallout

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