Introduction

Securities and Exchange Commission considering ban on listed foreign companies following IFRS sustainability accounting rules

Securities and Exchange Commission chairman Paul Atkins has raised the prospect of foreign companies listed in the US being banned from using International Financial Reporting Standards sustainability and climate reporting standards. He says the IFRS Foundation is chasing political fads, and its sustainability considerations could undermine the standards' compatibility with US accounting rules. Atkins has also criticised the EU's Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive, accusing them of creating additional costs for investors. The SEC has allowed foreign companies listed in the US to use IFRS Foundation standards for almost 20 years, rather than the US Generally Accepted Accounting Principles. Switching to the US requirements could be costly for companies seeking to obtain or maintain access to US capital markets.

Best source: Reuters (subscription required)

See also: Securities and Exchange Commission


Women chief financial officers account for higher shareholder returns worldwide: study

Although fewer than a quarter of chief financial officers at big companies are women, those that do have women CFOs surpass men on key measures, according to a study by finance software company OneStream. According to the survey of 1,146 business finance heads, companies with female CFOs deliver an average annualised shareholder return of 4.5%, 0.2% above the mean across Europe, the UK and US. According to the study, women CFOs have to take a longer, more convoluted road to the most senior finance job – on average three years more than men – while 35% follow non-linear career paths. The authors argue that diversity of experience gives female CFOs advantages including a broader perspective, greater operational skills and deeper leadership experience.

Best source: Fintech Finance News

See also: International Accounting Bulletin

See also: Stock Titan

See also: OneStream Software


N26 appoints former Bundesbank executive as supervisory board chairman to resolve tension with investors

Digital bank N26 plans to nominate Andreas Dombret, a former head of banking and financial supervision at the Bundesbank, as chairman of its supervisory board. The change is part of a leadership overhaul intended to reduce friction between investors, the group's founders and regulators, with Marcus Mosen, the current chairman, set to become co-CEO alongside Maximilian Tayenthal. The reshuffle is in response to renewed regulatory scrutiny from BaFin, Germany's financial regulator, and ongoing disputes over the founders' control and investor returns. Co-founder Valentin Stalf, who has stepped down as co-CEO, may move to the supervisory board, while Tayenthal is expected to leave N26's executive management by the end of the year. Dombret's appointment is subject to regulatory approval but is expected to proceed without significant obstacles.

Best source: Finance Feeds


Eurosif and 370 other organisations call on EU to preserve core provisions of sustainability disclosure directives

The European Sustainable Investment Forum and 370 financial institutions, investors, related organisations and businesses including Allianz, Nordea Asset Management and Belgian insurer P&V Verzekeringen have called on the EU to retain the core of its sustainable finance framework amid measures to simplify the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive. The statement was co-ordinated by Eurosif, the Institutional Investors Group on Climate Change, the Principles for Responsible Investment network and other international groups.

Best source: ESG Dive

See also: Eurosif


South-East Asian private equity sector under pressure amid mounting losses and governance issues

A series of investment setbacks and governance scandals in South-East Asia's private equity industry, including substantial losses at Malaysia's sovereign wealth fund Khazanah Nasional and misconduct at start-ups including eFishery, have prompted greater caution among investors. Limited partners are increasingly prioritising manager selection, rigorous due diligence and deal protection as fundraising declines and the macroeconomic environment remains difficult. They are leading growing demand for stronger governance standards and the involvement of experienced local partners, signalling a shift towards more disciplined and transparent investment practices in the region.

Best source: Private Equity International (subscription required)

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