Fese September 15, 2009 Brussels

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Federation of European Securities Exchanges (FESE) - Economics and Statistics Committee (ESC)

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Fese September 15, 2009 Brussels

  1. 1. Review of Accounting Directives – XBRL perspective Piotr Madziar – European Commission 15 September 2009, Brussels - FESE
  2. 2. Topics <ul><li>XBRL – areas of potential application </li></ul><ul><li>Regulate future financial markets </li></ul><ul><li>Simplify - Get economy restart by business friendly environment </li></ul><ul><li>Disclose - Restore confidence in markets and institutions </li></ul><ul><li>Automate - Make the knowledge society work </li></ul><ul><li>Conclusions </li></ul><ul><li>Next steps? </li></ul>
  3. 3. Europe – are we ready? European Institutions L3C Industry MS professions IT Financial Real economy IT Financial EU Internal Market Int’l Regulatory Standard setting IOSCO Basel IASB IFAC Third countries FSF WB IMF
  4. 4. XBRL driving forces XBRL Simplification Crisis Stoiberg De Larosiere G20 EU Council EP COM MS E-Gov, Information Society, EU Competitivenss Corporate governance and transparency Simplification - Reduction of Admin Burden De Larosiere Reform
  5. 5. Measures <ul><li>Regulate </li></ul>Simplify Automate Disclose HLG Stoiber Opinions Studies Accounting Review Transparency Direcitve FP7/Cordis Grants Technical Standards Interoperability CESR TG Commission Communication IFRS for SME? ? To: SBR - EU taxonomy? SME Citizens, Unions Young&Smart Now: L3 legislation In Future: New L3: Authorities, Budgets,Tech standards Request by: Treasuries Taxpayers
  6. 6. Regulate !
  7. 7. Christopher Cox and Charlie McCreevy <ul><li>Statement of 1 February 2008: </li></ul><ul><li>Wide-ranging discussion on XBRL developments </li></ul><ul><li>Cooperative approach to reducing regulatory friction </li></ul><ul><li>Enhancing investor protection </li></ul><ul><li>XBRL will let investors take full advantage of IFRS (in the speech) </li></ul>
  8. 8. European Parliament <ul><li>Resolution on Lamfalussy follow-up: future structure of supervision (September 2008) </li></ul><ul><li>Calls upon the L3 Committees to design common reporting standards </li></ul><ul><li>Multi-purpose format such as XBRL </li></ul><ul><li>Throughout the EU </li></ul><ul><li>Calls upon the Commission to submit adequate legislative proposals </li></ul>
  9. 9. XBRL for IFRS <ul><li>Commission works with: </li></ul><ul><li>IASCF XAC </li></ul><ul><li>XBRL EU </li></ul><ul><li>FEE XBRL WG </li></ul>
  10. 10. De Larosiere Reform <ul><li>Financial crisis driven </li></ul><ul><li>Position of national regulators? </li></ul><ul><li>Global aspect </li></ul><ul><li>Commission absolute priority </li></ul>
  11. 11. De Larosiere proposal <ul><li>Commission’s proposal in late September 2009 </li></ul><ul><li>ESRC and ESFS = ECB + ESAs + national regulators+… </li></ul><ul><li>Banking: FCD, CRD, DGSD, fund transfer reg,…? </li></ul><ul><li>Insurance: FCD, IORP Dir, Insurance and Reinsurance Directives, Solvency II, Anti Money Laundering Dir (AMLD),…? </li></ul><ul><li>Securities & Markets: TD, MiFID, MAD, PD, UCITS, CRA Reg., Take-over Bids Dir, Settlement Finality Dir (SFD), Financial Collateral Arrangements Dir….? </li></ul><ul><li>Technical standards,…? XBRL? </li></ul><ul><li>Links to international standard setters,…? XBRL? </li></ul><ul><li>Financial assistance 50 M€ </li></ul>
  12. 12. Commissioner’s agenda <ul><li>Addressed in 7 September 2009 speech: </li></ul><ul><li>[Course out of the current crisis] will also require effective and responsible reform of financial markets. Speed is of essence: we cannot afford to emerge from the crisis without a financial system that is more ethical, robust and responsible </li></ul><ul><li>… my vision for Europe in 2020 (…) shows real leadership on the global stage, with our partners in the G8 and G20 , especially with the US </li></ul>
  13. 13. Simplify !
  14. 14. Simplification and reduction of administrative burden <ul><li>Citizen well-being and SME driven </li></ul><ul><li>EU initiative </li></ul><ul><li>Open formula (all ideas welcomed) </li></ul><ul><li>High priority for Barroso 1 Commission (and next Commission?) </li></ul>
  15. 15. European Parliament <ul><li>Resolutions on simplified business environment (January 2008, May 2008) </li></ul><ul><li>It should be easier to prepare, file and publish statutory information </li></ul><ul><li>Electronically </li></ul><ul><li>Strongly promotes the use of new technology such as XBRL </li></ul><ul><li>Such information easily accessible for investors, creditors and employees </li></ul><ul><li>Throughout the EU </li></ul><ul><li>Invites the Commission to present a roadmap for introducing XBRL in the EU </li></ul>
  16. 16. Simplification initiatives <ul><li>Stoiber HLG Opinion on annual accounts (XBRL, pull model) of 10/07/2008 </li></ul><ul><li>Study identifying simplification areas </li></ul><ul><li>Report on Simplification in Accounting </li></ul><ul><li>Study on prudential reporting </li></ul><ul><li>Commission at XBRL Int’l Conference – 24/06/2008 </li></ul><ul><li>Review of Accounting Directives 2009 </li></ul><ul><li>Business Registers </li></ul>
  17. 17. Accounting Review - XBRL <ul><li>3/50 against </li></ul><ul><li>10 (11) MS use it </li></ul><ul><li>17 MS have active projects </li></ul><ul><li>€ 200-€500 costs (€7 for SME) in Germany, less than €0 in Belgium (savings of €22m) </li></ul><ul><li>OK for one-stop-shop </li></ul><ul><li>BUT: implementation gradual </li></ul><ul><li>Option for companies </li></ul>
  18. 18. Other <ul><li>XBRL taxonomy for IFRS for SME, by IASCF </li></ul><ul><li>X-DIS (XML for Data Interoperability in Statistics) is the statistical project in the IDABC programme </li></ul><ul><li>BRITE </li></ul>
  19. 19. Disclose !
  20. 20. Corporate disclosure <ul><li>Corporate governance in financial industries </li></ul><ul><li>Driven by transatlantic relations </li></ul><ul><li>Remuneration, bonus-malus </li></ul><ul><li>Position of business organisations, regulators? </li></ul><ul><li>Global aspect (G20), but MS strong interest (GE, FR,…) </li></ul>
  21. 21. Transparency Directive (2004/109/EC): <ul><li>Recitals (23) and (25): </li></ul><ul><li>One filing and storage system in each MS </li></ul><ul><li>Access to information more organized </li></ul><ul><li>Dissemination throughout the Community </li></ul><ul><li>Centralised dissemination in MS allowing a European network to be built up </li></ul><ul><li>Article 22: </li></ul><ul><li>MS to draw up public access guidelines </li></ul><ul><li>Aiming at creation of electronic networks at national level between regulators, operators, regulated markets and company registers </li></ul><ul><li>Aiming at creation of a single electronic network (or platform of networks) across MS </li></ul>
  22. 22. CESR <ul><li>Advice on storage and filing of regulated information (30 June 2006): </li></ul><ul><li>Questions: </li></ul><ul><li>Whether use of input standards (XBRL or similar) is desirable </li></ul><ul><li>Type of technology used in the interface with end users </li></ul><ul><li>Answers: </li></ul><ul><li>MS to designate Officially Appointed Authorities (OAMs) </li></ul><ul><li>Quality standards to be compiled by OAMs </li></ul><ul><li>OAMs must be accessible through internet, receive electronic filings, store in electronic format </li></ul><ul><li>Electronic means must be: easily accessible, commonly used, widely available </li></ul><ul><li>Interoperability agreements between MS and between OAMs </li></ul><ul><li>New CESR advise by 2010 </li></ul>
  23. 23. Commission <ul><li>Recommendation (11 October 2007): </li></ul><ul><li>MS to mandate the competent authorities to prepare (within CESR) a governance agreement </li></ul><ul><li>It should address: </li></ul><ul><li>Creation of a network platform </li></ul><ul><li>Conditions to join </li></ul><ul><li>Sanctions </li></ul><ul><li>Network platform managing body </li></ul><ul><li>Funding </li></ul><ul><li>Functionalities of the electronic network: </li></ul><ul><li>Central list of issuers </li></ul><ul><li>Interface language directory </li></ul><ul><li>Security, certainty, time recording, accessibility, searchable </li></ul>
  24. 24. Automate !
  25. 25. Council Conclusions of 22 and 23 November 2007 <ul><li>Europe must remain in the forefront </li></ul><ul><li>IT offers new set of tech instruments and business reporting languages </li></ul><ul><li>European Community and MS to improve competitiveness </li></ul><ul><li>Need to streamline reporting concerning the same type of data </li></ul><ul><li>Optimise the use of electronic means </li></ul><ul><li>Take into account the possibilities offered by the available technical standards </li></ul>
  26. 26. E-government initiatives <ul><li>Technology and competitiveness driven </li></ul><ul><li>Completion of (New?) Lisbon Agenda </li></ul><ul><li>EU and global dimension </li></ul>
  27. 27. Thank you! Contacts <ul><li>DG Internal Market & Services website: </li></ul><ul><li>http:// ec.europa.eu/dgs/internal_market/index_en.htm </li></ul><ul><li>Piotr Madziar </li></ul><ul><li>+32-(0)2-2950869 </li></ul><ul><li>[email_address] </li></ul>

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