Banks Face 24-Year Auditor Limit as EU Seals Rotation Deal
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Banks and companies listed on stock exchanges will be forced to change auditing teams after a maximum of 24 years under a European Union deal to water down proposals aimed at bolstering corporate oversight.
EU negotiators brokered a draft agreement in Brussels that requires companies to change accounting every 10 years, with a one-off right to an extension as long as 14 years if they carry out a tender process, Michel Barnier, the EU’s financial services chief said in an e-mailed statement. Audit firms will also face curbs on providing consulting and other services to companies whose accounts they review.