Germany promises to probe audit regulator’s Wirecard dealings

Wirecard

Germany has promised to research after the head of the body that regulates auditors told lawmakers he’d traded in Wirecard shares weeks before the payment services business collapsed amid fraud allegations.

As leader of audit regulator APAS, Ralf Bose was responsible for regulating EY, which audited Wirecard’s accounts for years before the company collapsed after the discovery of a 1.9 billion euro (approximately $2.3 billion) hole in its accounts.

“We will discuss the matter with the people involved,” Economy Minister Peter Altmaier mentioned on Friday, adding that he was “concerned” after learning immediately of Bose’s share trading.

He vowed the issue would be “intensively” examined and said authorities would assess if the rules were followed.

Bose told a parliamentary committee on Thursday that he’d dealt in Wirecard shares shortly before its collapse, according to supporters of the closed-door meeting. He said he bought shares on Apr. 28 and sold them on May 20.

There is not any proof that his trades broke any rules.

APAS declined to comment and stated Bose was not available for comment.

Germany’s financial regulator BaFin is looking into the topic, a spokeswoman said. It is not yet clear that an official investigation would be launched, she added.

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The Wirecard case has become an embarrassment for authorities and officials, who were accused of failing to sufficiently track the $28 billion business, which most had thought was a rare German electronic winner.

Some politicians predicted for Bose to resign.

The team at Platform Executive hope you have enjoyed the ‘Germany promises to probe audit regulator’s Wirecard dealings‘ article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Christian Kraemer, Patricia Uhlig, and Hans Seidenstuecker. Writing by Thomas Escritt and Tom Sims. Editing by Simon Cameron-Moore and Pravin Char.

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