66 Amendments of Françoise CASTEX related to 2011/0359(COD)
Amendment 204 #
Proposal for a regulation
Recital 11
Recital 11
(11) The provision of services other than statutory audit to audited entities by statutory auditors, audit firms or members of their networks may compromise their independence. Therefore, it is appropriate to require the statutory auditor, the audit firm and the members of their network not to provide non-audit services to their audited entities. The provision of non-audit services by an audit firm to a company would prevent that audit firm from carrying out statutory audit of that company, thus resulting in a reduction of the audit firms available to provide statutory audit, in particular with regard to the audit of large public-interest entities where the market is concentrated. As a result, in order to secure that a minimum number of audit firms is able to provide audit services to large public- interest entities, it is appropriate to request that audit firms of significant dimension focus their professional activity on the carrying out of statutory audit and are not allowed to undertake other services unconnected to their statutory audit function such as consultancy or advisory services.
Amendment 223 #
Proposal for a regulation
Recital 26
Recital 26
(26) The appointment of more than one statutory auditor or audit firm by the public-interest entities would reinforce the professional scepticism and contribute to increasing audit quality. Also, this measure combined with the presence of smaller audit firms would facilitate the development of the capacity of such firms, thus contributing to increasing the choice of statutory auditors and audit firms for public-interest entities. Therefore, the latter should be encouraged and incentivised to appoint more than one statutory auditor or audit firm to carry out the statutory audit under conditions which make it possible for the audit to be performed in a collective and concerted manner, and for a cross-check of each auditor’s work to be carried out.
Amendment 233 #
Proposal for a regulation
Recital 36
Recital 36
(36) The cooperation between the competent authorities of the Member States can make an important contribution to ensuring consistently high quality in the statutory audit in the Union. Therefore, the competent authorities of the Member States should cooperate with each other, where necessary, for the purpose of carrying out their supervisory duties regarding statutory audits. They should respect the principle of home-country regulation and oversight by the Member State in which the statutory auditor or audit firm is approved and the audited entity has its registered office. The cooperation between competent authorities would be particularly enhanced if organised within the framework of the Joint Committee of European Supervisory Authorities (ESA), under the leadership of the European Securities and Markets Authority (ESMA) set up by Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities Market Authority). ESMA, with the assistance of the European Banking Authority (EBA) set up by Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority) and the European Insurance and Occupational Pensions Authority (EIOPA) set up by Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), should contribute to that cooperation by providing advice and guidelines to national competent authorities.
Amendment 235 #
Proposal for a regulation
Recital 38
Recital 38
Amendment 236 #
Proposal for a regulation
Recital 40
Recital 40
(40) Sustainable audit capacity and a competitive market for statutory audit services in which there is a sufficient choice of audit firms capable of carrying out statutory audits of public-interest entities are required in order to ensure a smooth functioning of capital markets. ESMAThe EGAOB should report on the changes brought in the audit market structure by this Regulation. When carrying such analysis, ESMAthe EGAOB should take into account the impact of the national civil liability rules for statutory auditors on the structure of the audit market. Based on such report and other appropriate evidence, the Commission should present a report on the impact of the national liability rules for statutory auditors on the audit market structure and should take the steps it considers appropriate as a result of its findings.
Amendment 238 #
Proposal for a regulation
Recital 43
Recital 43
(43) In order to take account of developments in auditing and the audit market, the Commission should be empowered to specify technical requirements on the content of the handover file that the new statutory auditor or audit firm should receive and on the establishment of a European quality certificate for statutory auditors and audit firms carrying out statutory audits of public-interest entities.
Amendment 239 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to take account of the technical developments in the financial markets, in auditing and the audit profession and to specify the requirements laid down in this Regulation, the Commission should be empowered to adopt delegatedimplementing acts in accordance with Article 2901 of the Treaty on the Functioning of the European Union. In particular, the use of delegatedimplementing acts is necessary to adapt the list of related audit services and of prohibited non-audit services as well as to set out the level of fees that ESMA could charge for delivering the European Quality Certificate to statutory auditors and audit firms. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts,, and should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.
Amendment 270 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. When the statutory auditor or audit firm provides to the audited entity related financial audit services, as referred to in Article 10(2), the fees for such services shall be limited to no more than 120 % of the fees paid by the audited entity for the statutory audit for two consecutive years. When two statutory auditors or audit firms are appointed, the fees for such services shall be limited to no more than 25 % of the fees paid by the audited entity for the statutory audit for two consecutive years. However, fees received for related financial services provided pursuant to national or European regulations shall not be taken into account in calculating the above thresholds.
Amendment 273 #
Proposal for a regulation
Article 9 – paragraph 3 – subparagraph 1
Article 9 – paragraph 3 – subparagraph 1
When the total fees received from a public- interest entity subject to the statutory audit represent, for two consecutive years, either more than 205 %, or, f more two consecutive years, more than 15 % of thehan 30 % when two statutory auditors or audit firms are appointed, of the total annual fees received by the statutory auditor or audit firm carrying out the statutory audit, suchthese auditors or firms shall disclose to the audit committee the fact that the total of such fees represents more than 205 % or 1530 %, as appropriate, of the total fees received by the firm and the discussions referred to in Article 11(4)(d) shall be undertaken. The audit committee shall consider whether the audit engagement shall be subject to a quality control review by another statutory auditor or audit firm prior to the issuance of the audit report.
Amendment 334 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
(vi) designing and implementing financial information technology systems for public- interest entities as referred to in Article 2(13)(b) to (j) of Directive 2006/43/EC;
Amendment 341 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii a (new)
(viiia) human resources services, including recruiting senior management;
Amendment 356 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b – point i
Article 10 – paragraph 3 – subparagraph 3 – point b – point i
Amendment 363 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b – point iii
Article 10 – paragraph 3 – subparagraph 3 – point b – point iii
Amendment 375 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 4
Article 10 – paragraph 3 – subparagraph 4
By derogation from the first and second subparagraphs, the services mentioned in point (b)(iii) and (iv) may be provided by the statutory auditor or the audit firm, subject to prior approval by the competent authority referred to in Article 35(1).
Amendment 382 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 5
Article 10 – paragraph 3 – subparagraph 5
By derogation from the first and second subparagraphs, the services mentioned in point (b)(i) and (ii) may be provided by the statutory auditor or the audit firm, subject to prior approval by the audit committee as referred to in Article 31 of this Regulation.
Amendment 395 #
Proposal for a regulation
Article 10 – paragraph 5
Article 10 – paragraph 5
Amendment 551 #
Proposal for a regulation
Article 32 – paragraph 4
Article 32 – paragraph 4
4. Public-interest entities which meet the criteria set out in points (f) and (t) of Article 2(1) of Directive 2003/71/EC or which have appointed two statutory auditors or audit firms shall not be required to apply the selection procedure referred to in paragraph 4.
Amendment 561 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 1
Article 33 – paragraph 1 – subparagraph 1
The public-interest entity shall appoint a statutory auditor or audit firm for an initial engagement that shall not be shorter than two years.
Amendment 562 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 1
Article 33 – paragraph 1 – subparagraph 1
The public-interest entity shall appoint at least one statutory auditor or audit firm for an initial engagement that shall not be shorter than two years or longer than six years.
Amendment 565 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 2
Article 33 – paragraph 1 – subparagraph 2
Amendment 582 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 3
Article 33 – paragraph 1 – subparagraph 3
The maximum duration of the combined two engagements shall not exceed 612 years.
Amendment 595 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 4
Article 33 – paragraph 1 – subparagraph 4
Where throughout a continuous engagement of 6 years two statutory auditors or audit firms have been appointed, the maximum duration of the engagement of each statutory auditor or audit firm shall not exceed 918 years.
Amendment 606 #
Proposal for a regulation
Article 33 – paragraph 2 a (new)
Article 33 – paragraph 2 a (new)
2a. By way of derogation from paragraphs 1 and 2, the same statutory auditor or audit firm may be re-engaged by the following entities, provided that they are not among a Member State’s twenty largest issuers of shares as measured by market capitalisation on the basis of end- year quotes: (a) issuers of shares with a market capitalisation of less than EUR 1 billion on the basis of end-year quotes for the previous three calendar years; (b) credit institutions which, in addition, meet at least two of the following three criteria: - an average number of employees during the financial year of fewer than 250 persons; - a total balance sheet not exceeding EUR 43 million; - an annual net turnover not exceeding EUR 50 million.
Amendment 645 #
Proposal for a regulation
Article 35 – paragraph 6 – subparagraph 1
Article 35 – paragraph 6 – subparagraph 1
The Member States shall inform each other, EBA, EIPA and ESMA in accordance with the relevant provisions of Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010, and shall inform the EGAOB and the Commission of the appointment of competent authorities for the purposes of this Regulation.
Amendment 646 #
Proposal for a regulation
Article 35 – paragraph 6 – subparagraph 2
Article 35 – paragraph 6 – subparagraph 2
Amendment 674 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 1
Article 46 – paragraph 1 – subparagraph 1
The cooperation between competent authorities shall be organised within the framework of ESMAthe EGAOB.
Amendment 676 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 2
Article 46 – paragraph 1 – subparagraph 2
Amendment 679 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 3
Article 46 – paragraph 1 – subparagraph 3
Amendment 680 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 4
Article 46 – paragraph 1 – subparagraph 4
Amendment 683 #
Proposal for a regulation
Article 46 – paragraph 2
Article 46 – paragraph 2
2. ESMAThe EGAOB shall provide advice to the competent authorities in the cases provided for in this Regulation. The Ccompetent authorities shall consider that advice before taking any final decision under this Regulation.
Amendment 685 #
Proposal for a regulation
Article 46 – paragraph 3 – subparagraph 1 – introductory part
Article 46 – paragraph 3 – subparagraph 1 – introductory part
In order to facilitate the exercise of the tasks provided for in this Regulation, ESMAthe EGAOB shall issue guidelines, in accordance with Article 16 of Regulation (EU) No 1095/2010, as appropriate, on:
Amendment 687 #
Proposal for a regulation
Article 46 – paragraph 3 – subparagraph 2
Article 46 – paragraph 3 – subparagraph 2
Amendment 689 #
Proposal for a regulation
Article 46 – paragraph 4 – subparagraph 1
Article 46 – paragraph 4 – subparagraph 1
By X X 20XX [four years after the entry into force of the Regulation], and at least at on a two-year basis thereafter, ESMAthe EGAOB shall prepare a report on the application of this Regulation.
Amendment 690 #
Proposal for a regulation
Article 46 – paragraph 4 – subparagraph 2
Article 46 – paragraph 4 – subparagraph 2
Amendment 691 #
Proposal for a regulation
Article 46 – paragraph 4 – subparagraph 3
Article 46 – paragraph 4 – subparagraph 3
In a report to be prepared by X X 20XX [two years after the entry into force of the Regulation], ESMAthe EGAOB shall undertake an evaluation of the structure of the audit market.
Amendment 692 #
Proposal for a regulation
Article 46 – paragraph 4 – subparagraph 4
Article 46 – paragraph 4 – subparagraph 4
For the purpose of this report, ESMAthe EGAOB shall examine the influence of Member States’ civil liability systems for statutory auditors on the audit market structure.
Amendment 693 #
Proposal for a regulation
Article 46 – paragraph 4 – subparagraph 5
Article 46 – paragraph 4 – subparagraph 5
In a report to be prepared by ESMA by X X 20XX [four years after the entry into force of the Regulation], the EGAOB shall examine whether the competent authorities referred to in Article 35(1) are sufficiently empowered and have adequate resources to carry out their tasks.
Amendment 694 #
Proposal for a regulation
Article 46 – paragraph 4 – subparagraph 6 – introductory part
Article 46 – paragraph 4 – subparagraph 6 – introductory part
In a report, to be prepared by ESMA by X X 20XX [six years after the end of the transitional period], the EGAOB shall examine the following issues:
Amendment 695 #
Proposal for a regulation
Article 46 – paragraph 4 – subparagraph 7
Article 46 – paragraph 4 – subparagraph 7
In a report, to be prepared by X X 20XX [twelve years after the entry into force of the Regulation], ESMAthe EGAOB shall undertake an evaluation of the impact of this Regulation.
Amendment 697 #
Proposal for a regulation
Article 46 – paragraph 5
Article 46 – paragraph 5
5. Before X X 20XX [three years after the entry into force of the Regulation] the Commission shall present a report, on the basis of the ESMAGAOB reports and other appropriate evidence, on the impact of the national liability rules for statutory auditors on the audit market structure. In the light of that report, the Commission shall take the steps it considers appropriate as a result of its findings. Power shall be delegated to the Commission to amend Decision 2005/909/EC in order to confer an independent legal status on the EGAOB and carry out the tasks provided for by this Regulation.
Amendment 698 #
Proposal for a regulation
Article 50
Article 50
Amendment 700 #
Proposal for a regulation
Article 51 – paragraph 2 – subparagraph 3
Article 51 – paragraph 2 – subparagraph 3
Amendment 701 #
Proposal for a regulation
Article 51 – paragraph 2 – subparagraph 4
Article 51 – paragraph 2 – subparagraph 4
The investigation or inspection shall be subject throughout to the overall control of the Member State on whose territory it is conducted. However, in the event of an investigation or inspection with cross- border effect, the competent authorities may request ESMAthe EGAOB to coordinate the investigation or inspection.
Amendment 702 #
Proposal for a regulation
Article 52 – paragraph 1
Article 52 – paragraph 1
Where the audit firms concerned by the requirement in Article 43 belong to networks of at least Union dimension, competent authorities shall cooperate within ESMAthe EGAOB with a view to ensuring that the different national requirements take account of the network dimension.
Amendment 703 #
Proposal for a regulation
Article 52 – paragraph 2
Article 52 – paragraph 2
The competent authorities shall make available to ESMAthe EGAOB and the other competent authorities the contingency plans received pursuant to Article 43(4).
Amendment 704 #
Proposal for a regulation
Article 52 – paragraph 3
Article 52 – paragraph 3
Amendment 706 #
Proposal for a regulation
Article 53 – paragraph 3 – subparagraph 1
Article 53 – paragraph 3 – subparagraph 1
With regard to specific networks, colleges of competent authorities shall be established by ESMAthe EGAOB upon request of one or more competent authorities.
Amendment 707 #
Proposal for a regulation
Article 53 – paragraph 7
Article 53 – paragraph 7
7. In the absence of agreement concerning the written coordination arrangements under paragraph 6, any member of the college may refer the matter to ESMAthe EGAOB. The facilitator shall give due consideration to any advice provided by ESMAthe EGAOB concerning the written coordination arrangements before agreeing their final text. The written coordination arrangements shall be set out in a single document containing full reasons for any significant deviation from the advice of ESMAthe EGAOB. The facilitator shall transmit the written coordination arrangements to the members of the college and to ESMAthe EGAOB.
Amendment 709 #
Proposal for a regulation
Article 55 – paragraph 1
Article 55 – paragraph 1
1. The obligation of professional secrecy shall apply to all persons who work or who have worked for ESMAthe EGAOB, or for any other person to whom ESMAthe EGAOB has delegated tasks, including experts contracted by ESMAthe EGAOB. Information covered by professional secrecy shall not be disclosed to another person or authority except where such disclosure is necessary for legal proceedings.
Amendment 710 #
Proposal for a regulation
Article 55 – paragraph 2
Article 55 – paragraph 2
2. Paragraph 1 of this Article and Article 37 shall not prevent ESMAthe EGAOB and the competent authorities from exchanging confidential information. Information thus exchanged shall be covered by the obligation of professional secrecy, to which persons employed or formerly employed by competent authorities are subject.
Amendment 711 #
Proposal for a regulation
Article 55 – paragraph 3
Article 55 – paragraph 3
3. All the information exchanged under this Regulation between ESMAthe EGAOB, the competent authorities and other authorities and bodies shall be considered confidential, except where ESMAthe EGAOB or the competent authority or other authority or body concerned states at the time of communication that such information may be disclosed or where such disclosure is necessary for legal proceedings.
Amendment 712 #
Proposal for a regulation
Article 56 – paragraph 2
Article 56 – paragraph 2
2. Regulation (EC) No 45/2001 shall apply to the processing of personal data carried out by the EGAOB, ESMA, EBA and EIOPA in the context of this Regulation.
Amendment 713 #
Proposal for a regulation
Article 57 – paragraph 1 – subparagraph 1
Article 57 – paragraph 1 – subparagraph 1
The competent authorities and ESMA may conclude cooperation agreements on exchange of information with the competent authorities of third countries only if the information disclosed is subject, in the third countries concerned, to guarantees of professional secrecy which are at least equivalent to those set out in Articles 37 and 55.
Amendment 714 #
Proposal for a regulation
Article 57 – paragraph 1 – subparagraph 3
Article 57 – paragraph 1 – subparagraph 3
Where such exchange of information involves the transfer of personal data to a third country, Member States shall comply with Directive 95/46/EC and ESMA shall comply with Regulation (EC) No 45/2001.
Amendment 715 #
Proposal for a regulation
Article 57 – paragraph 2 – subparagraph 1
Article 57 – paragraph 2 – subparagraph 1
The competent authorities shall cooperate with the competent authorities or other relevant bodies of third countries regarding the quality assurance reviews and investigations of auditors and audit firms. ESMAThe EGAOB shall contribute to this cooperation.
Amendment 716 #
Proposal for a regulation
Article 57 – paragraph 2 – subparagraph 2
Article 57 – paragraph 2 – subparagraph 2
Amendment 717 #
Proposal for a regulation
Article 58 – paragraph 1
Article 58 – paragraph 1
The competent authority of a Member State or ESMA may disclose the information received from competent authorities of third countries only if it has obtained the express agreement of the competent authority that has transmitted the information and, where applicable, the information is disclosed only for the purposes for which that competent authority gave its agreement, or where such disclosure is necessary for legal proceedings.
Amendment 718 #
Proposal for a regulation
Article 59 – paragraph 1
Article 59 – paragraph 1
The competent authority of a Member State or ESMA shall require that information communicated by them to a competent authority of a third country may be disclosed by that competent authority to third parties or authorities only with the prior express agreement of the competent authority which has transmitted the information, in accordance with its national law and provided that the information is disclosed only for the purposes for which that competent authority of the Member State or ESMA has given its agreement, or where such disclosure is necessary for legal proceedings.
Amendment 719 #
Proposal for a regulation
Article 60 – paragraph 1
Article 60 – paragraph 1
Amendment 721 #
Proposal for a regulation
Article 61 – paragraph 2
Article 61 – paragraph 2
Amendment 723 #
Proposal for a regulation
Article 63 – paragraph 2
Article 63 – paragraph 2
Amendment 724 #
Proposal for a regulation
Article 64 – paragraph 2
Article 64 – paragraph 2
Amendment 725 #
Proposal for a regulation
Article 67 – paragraph 1
Article 67 – paragraph 1
1. Competent and judicial authorities shall provide ESMAthe EGAOB annually with aggregated information regarding all administrative measures, sanctions and fines imposed in accordance with Articles 61, 62, 63, 64, 65 and 66. ESMAThe EGAOB shall publish this information in an annual report.
Amendment 726 #
Proposal for a regulation
Article 67 – paragraph 2
Article 67 – paragraph 2
2. Where the competent authority has disclosed administrative measures, sanctions and fines to the public, it shall simultaneously report that fact to ESMAthe EGAOB.
Amendment 727 #
Proposal for a regulation
Article 68
Article 68
Amendment 732 #
Proposal for a regulation
Article 69 – paragraph 1
Article 69 – paragraph 1
By X X 20XX [five years after the end of the transitional period] the Commission shall prepare a report on the application of this Regulation. The report shall take due account of the report prepared by ESMAthe EGAOB referred to in the fourth subparagraph of Article 46(4).