04 May 2006

FEE: Debate on internal control reporting remains open

The FEE published the conclusions of its consultation paper on EU risk management and internal control, noting that the debate remains open on the best model for corporate reporting on risk management and internal controls.

Europe can learn from developing experience of a variety of approaches in many European countries as well as in the US, where Section 404 of the Sarbanes-Oxley Act applies and practice continues to evolve.

The respondents to FEE’s original Discussion Paper generally concluded that while Europe should learn from the American experience of the Sarbanes-Oxley Act, it is not desirable to introduce a European equivalent of Section 404 of the Sarbanes-Oxley Act. FEE’s consultation process also led to a majority conclusion that any further regulation should take an evolutionary approach.

Press release
Analysis of responses
Responses to discussion paper

© FEE