18 January 2007

Commission consultation on possible reform of EU auditors' liability rules

The Commission launched a public consultation on whether there is a need to reform rules on auditors’ liability in the EU and on the possible ways forward. The Commission presents four possible options for reforming auditors' liability regimes in the EU.

The introduction of a fixed monetary cap at European level, but this might be difficult to achieve.

The introduction of a cap based on the size of the audited company, as measured by its market capitalisation.

The introduction of a cap based on a multiple of the audit fees charged by the auditor to its client.

The introduction by Member States of the principle of proportionate liability, which means that each party (auditor and audited company) is liable only for the portion of loss that corresponds to the party’s degree of responsibility.

Deadline for consultation is 15 March 2007.

Press release
Consultation paper
Annex 1
Annex 2

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