Germany’s Regulators Were ‘Deficient’ In Wirecard Scandal, Says Esma

The European Securities and Markets Authority has criticised Germany’s financial regulator BaFin and the country’s accounting watchdog FREP for their “deficient” handling of the Wirecard accounting scandal. In a report published on Tuesday, in which the regulator detailed the result of its investigation into the Wirecard accounting fraud, Esma wrote that BaFin and FREP ignored red flags over Wirecard’s financial reporting for years, the Financial Times reported. “FREP did not pick up signals in the international media and failed to select Wirecard for examination in the period between 2016 and 2018,” said Esma, adding that BaFin also had not requested FREP to take a closer look during that period either. Read more