Europe: the governance priorities of the Internal Market Commissioner designate

Ahead of his hearing with MEPs on Wednesday, internal market commissioner designate Michel Barnier has provided - in his response to written questions (available here - pdf) - an indication of his legislative and policy priorities concerning corporate governance, company law and financial reporting:

.... I will present a report on governance in financial establishments which will contain proposals for remedying the weaknesses revealed by the crisis. I also intend to present a report on the implementation of the Recommendation on remuneration policies in the financial services sector as soon as possible, as well as other initiatives intended to eradicate abusive remuneration practices. I will adopt the same approach in relation to the implementation of the Recommendation on the remuneration of directors, followed, if necessary, by appropriate proposals. With reference to listed companies, a report on the application of the Transparency Directive will be published very shortly, possibly followed by amendment proposals.

In the area of financial information, one of my priorities will be the adoption by all of our partners, including the United States, of high-quality global accounting standards, in line with the recommendations of the G20. I would also like to improve the governance of the IASB significantly. As regards SMEs, I would like to put forward an ambitious proposal for the modernisation of accounting regulations. Lastly, with regard to the statutory audit of accounts, my priorities will be to enhance international cooperation in order to enable mutual recognition of supervisory systems in respect of directors, and potential adoption of the international accounting standards (ISA). With regard to company law, and in response to the requests of the European Parliament, I will propose that the Commission conduct a more in-depth analysis of the cross-border transfer of registered offices. I will also present a report on the modus operandi of the Statute for a European company".