Former EIB president to advise European Commission on IFRS

EUROPE – Philippe Maystadt, former president of the European Investment Bank (EIB) and former Belgian deputy prime minister, has joined the European Commission as special adviser focusing on International Financial Reporting Standards (IFRS) issues.

The EU Commissioner for Internal Market and Services Michel Barnier, who appointed Maystadt, said the harmonisation of financial reporting rules at the global level was an important element of prudential rules for banks and insurance companies.

IFRS standards also relate to employee benefits and therefore apply to pension funds.  

According to the Commission, the appointment of Maystadt will help Brussels to reinforce the EU's contribution to IFRS questions and to review the governance of the institutions developing these standards, namely the European Financial Reporting Advisory Group (EFRAG) and the Accounting Regulatory Committee (ARC).

In line with the regulation on IFRS introduced in 2005, the measures apply for the consolidated accounts of listed companies in the EU.

To this end, the regulation established a dedicated endorsement process under the responsibility of the EC together with EFRAG – an independent organisation providing expert advice – and the ARC, made of representatives from member states and chaired by the EC.

According to the Commission, the review undertaken by Maystadt should help strengthen the EU's contribution to advocating global and high-quality accounting standards.

Maystadt will recommend improvements to the current system, in particular on how to integrate different views and ensure that the EU speaks with a single voice, the Commission said.

He will also hold a series of interviews and public consultations before drafting a report, which will be presented to Barnier and finance ministers at the ECOFIN Council meeting in November.

Maystadt served as president of the European Investment Bank between 2000 and 2011.

Prior to this, he held various ministerial positions in the Belgian parliament in the 1980s and was appointed minister of finance in 1988.

Between 1995 and 1998, Maystadt also served as deputy prime minister.