The Minister of the Economy, Luis de Guindos, is going to push an auditor reform law in order to increase the level of transparency in the sector and strengthen corporate balance sheets. If the bill on the table passes, half of the companies listed on the Ibex stock market will half to change their current auditors within the year.
The new law would align with a plan from Brussels. This plan forces companies to rotate auditors, because some companies have been with the same one for over 20 years, which could create some problems that De Guindos wants to avoid. If the new law meets its goals, it would make audits more transparent and independent, something that is critical considering that investors deserve to know what they are buying.