Wirecard's implosion to leave a $2.1 billion hole in its books
came more than a decade after the first allegations of fraud by
some investors and journalists.
As a financial technology company, albeit one that owned a bank,
Wirecard was long considered as being in a grey area when it
came to traditional bank supervision.
"We will assess how to improve the relevant EU rules so these
kinds of cases can be detected," Valdis Dombrovskis told
reporters, adding that the review is set to end after the
summer.
It will look at whether changes are needed to the bloc's rules
on transparency requirements for listed companies, accounting
norms and existing regulation aimed at stamping out market
abuses, he said.
Wirecard seems not to have provided reliable and trustful
information to investors and therefore was in breach of current
rules, Dombrovskis said.
But there was also a need to examine supervision by regulators,
and not just the rules themselves, he said.
Germany's financial supervisor BaFin and the accounting watchdog
- the privately-owned Financial Reporting Enforcement Panel (FREP)
have come under scrutiny in the wake of Wirecard's collapse.
BaFin and FREP supervised Wirecard.
Wirecard was a hybrid company that processed electronic payments
and also owned a bank, leaving regulators at odds over how it
should be supervised.
Lessons from Wirecard could also be applied to the bloc's work
on how to supervise "critical third party" providers such as
tech related companies, Dombrovskis said.
The Commission had launched a public consultation on its digital
finance strategy, though it was unclear if the German company
would have come under this criteria.
The strategy looks at how the same risks, whether from a
technology or a financial company, should be regulated and
supervised in the same way.
(Reporting by Huw Jones, editing by Louise Heavens)
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