EC rejects liability cap.
The European Commission has rejected the push by the Big Four accounting firms to limit the amount of money a firm can be liable.
Frits Bolkestein, the European commissioner responsible for financial services claimed that the current position of unlimited liability was a ‘quality driver’ as it ensured that auditors would do the best job possible in order to ensure that it had no exposure to litigation.
‘After so many major financial scandals and potential audit failures, regulators need to act to restore investor confidence,’ said Bolkestein at a London conference yesterday, according to the FT. ‘An intervention limiting liability, to my mind, will not serve to revive the trust of investors.’