Cyprus is looking for alternatives to bail out teetering banks after parliament rejected a levy on depositors that would have secured €10 billion in loans from the EU and the International Monetary Fund. Uncertainty created by lawmakers' vote raises fresh concerns about the eurozone's ability to hold together long term.
British lawmaker Sajjad Karim said in a report that a proposed EU rule calling for auditor rotation every six years should be abandoned. He proposes allowing companies to keep the same auditor for up to 25 years. He also wants to eliminate a proposal that calls for splitting up audit firms if their market share grows beyond a certain size.
Finance chiefs would have new ethical considerations under proposed changes to a global ethics code for accountants. The International Ethics Standards Board for Accountants is proposing steps that management accountants should take if they suspect fraud. That includes how and when to disclose this information to management, the board or external sources.
Tim Kirk, a partner and head of financial services at accountancy and business advisory BDO, said the UK Financial Services Authority's recovery and resolution plans likely will cost banks and other financial-services firms "tens of millions of pounds". Kirk's estimate is much higher than that from the FSA. "It is questionable whether it is worth companies investing these significant amounts of time and money in complex recovery and resolution plans when there are much higher priorities," Kirk said.