EU exec to ask ESMA to look into collapse of Wirecard

BRUSSELS, June 26 (Reuters) – The European Commission will ask the European Securities and Markets Authority (ESMA) to investigate if BaFin, Germany’s banking regulator, failed in its supervision of the failed German payments company Wirecard.

Valdis Dombrovskis, the Commission’s executive vice president, told the Financial Times in an interview that depending on the result of that preliminary probe, the Commission could launch a probe into whether BaFin broke EU law on financial reporting.

“We will be asking ESMA to investigate whether there have been supervisory failures and if so to set out a possible course of action,” Dombrovskis was quoted by the paper as saying.

“We need to clarify what went wrong,” he said, adding he would set a mid-July deadline for ESMA to reply. (Reporting by Jan Strupczewski)

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