EUROPEAN UNION: EBA Consults on Communication between Competent Authorities Supervising Credit Institutions and Statutory Auditors

Thursday October 22 2015

On 21^st October 2015, the European Banking Authority (EBA) launched a consultation on its draft Guidelines on the communication between competent authorities supervising credit institutions and statutory auditors of those institutions. Effective communication between competent authorities and auditors should contribute to fostering financial stability, safety and soundness of the banking system. The consultation runs until 21 January 2016.

Further convergence of the existing different practices applied across Member States on how competent authorities interact with statutory auditors should contribute to establishing a level playing field between credit institutions especially for those that pose a higher threat to financial stability.

The draft guidelines include provisions on the main elements to effective communication, such as the scope of information shared, the form of communication, the participants in the exchange of information, the frequency and timing of communication.

In line with the EBA`s mandate, the guidelines have been developed taking into account the current practices of each Member State, as well as other existing international guidance and practices, including the BCBS guidance on `External audits of banks`.

Click on the link above for further details.