Committee Of European Securities Regulators Consultation On Principles Of Enforcement Of Accounting Standards In Europe

CESR yesterday released a consultation paper which contains a Statement of Principles (SOP) covering definition and methods of enforcement of accounting standards (Ref. CESR/02-188b). The SOP will be used for developing standards of best practice on enforcement among CESR members. The paper puts forward the way in which the harmonisation of the institutional oversight systems may be achieved in Europe. In particular, it provides a definition of enforcement of financial information, selection techniques applicable by enforcers and a description of the responsibilities of the different parties involved.

This SOP has been prepared by CESR's standing committee (CESR-Fin) in the area of financial reporting chaired by Henrik Bjerre-Nielsen, Director General of the Danish Financial Supervisory Authority and more specifically by the Sub-committee on Enforcement (SCE), chaired by Mr Angelo Apponi, Chief Accountant at Commissione Nazionale per le Societa e la Borsa (CONSOB).

This SOP should be regarded as part of CESR's contribution to the task of developing and implementing a common approach to enforcement of International Accounting Standards (IAS) in Europe. The harmonisation of enforcement systems is expected to be an effective tool to create an efficient capital market within the Union and should restore and improve investors confidence in capital markets.

In order to give interested parties an opportunity to express their opinions on the SOP, CESR will hold an open hearing on January 7, 2003 at the CESR premises in Paris. The deadline for submitting responses to the consultation paper is 15 January 2003. Responses should be addressed to Mr Fabrice Demarigny, Secretary General, CESR, by email at secretariat@europefesco.org.