Lesson from Wirecard: Scholz wants changes in financial supervision

The manipulations at the payment service provider Wirecard were also not noticed by the German financial regulator. Federal Finance Minister Scholz therefore wants to position Bafin better. The minister also holds out the prospect of additional staff for more effective official control.

As a consequence of the forgery of the balance sheet at the payment service provider Wirecard, Federal Finance Minister Olaf Scholz has announced changes to the financial supervision. It is now up to the legislator to "review and improve the protective mechanisms," the SPD politician told the "Frankfurter Allgemeine Sonntagszeitung" (FAS). "Nobody should just hold their breath and hope that nothing happens. We have to clarify what went wrong in all areas."

The necessary measures include a direct right of access by the Federal Financial Supervisory Authority (Bafin) and the abolition of the previous two-stage review procedure. The Bafin needed "the opportunity to carry out large-scale special audits at any time," said the minister. "If we come to the conclusion that Bafin needs more money, more jobs and more skills, I will do my best to ensure that this happens."

Scholz stated that he also wanted to give the authority "more rights of access to the control of balance sheets, regardless of whether the group has a banking division or not". Large payment service providers should generally be subject to financial supervision.

No excuse to do nothing

Scholz is also reviewing changes with auditors who had not noticed the manipulations at Wirecard for years. "It will be discussed whether auditors have to rotate more often," he told FAS. It should also be considered "whether it works if a company advises and reviews a company at the same time".

However, Scholz is skeptical about the introduction of higher liability for the auditors. "If the idea of ​​higher liability is just an excuse not to do anything else, it's not a wise move," he warned.

In the interview, Scholz protected Bafin boss Felix Hufeld against criticism. "He does not avoid the problems and also looks critically at his own actions," said the finance minister. "If everyone does like him, we will get good results."

Wirecard has admitted that the annual balance sheet lacks 1.9 billion euros and that the money at two Philippine banks probably does not even exist. The share price of the Dax group crashed, the company filed for bankruptcy. Ex-Wirecard boss Markus Braun has now turned to the judiciary. The whereabouts of the former Wirecard board member Jan Marsalek, however, remains unknown. He had had his lawyer tell him not to face the judiciary.