The German government is responding to the Wirecard fraud scandal with the Financial Market Integrity Strengthening Act (FISG), which came into force on July 1, 2021. For the first time, the legislature now explicitly requires appropriate and effective internal control and risk management systems and creates a direct right of information for the audit committee to the heads of ICS, RMS and internal auditing.
The law includes a large number of innovations aimed at strengthening confidence in the German financial market. In addition to the optimization of the balance sheet control and the further regulation of the audit, the changes also affect corporate governance of companies.
KPMG has published a publication clearly summarizing the changes that are most important for management and supervisory boards. The publication also provides information on the transitional provisions applicable to individual provisions. The brochure can be downloaded here.
Please note: The brochure is only available in German.