-
OECD Recommendation on Financial Literacy (18 January 2021)
Published: 19/01/2021
The Recommendation on Financial Literacy was adopted by the OECD Council at ministerial level on 29 October 2020. The Recommendation offers a comprehensive tool on financial literacy to assist governments, public authorities and other entities in designing, implementing and evaluating financial literacy.
-
Abusive financial services: Consob blacks out 6 websites (Press release of 15 January 2021)
Published: 15/01/2021
PRESS RELEASE
Consob has ordered the blackout of 6 new websites that abusively offer financial services.
The Authority availed itself of the powers deriving from the "Growth Decree" (Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet connectivity service providers to inhibit access from Italy to the websites through which financial services are offered without due authorization.
Below are the websites Consob has ordered to be blacked out:
- "Axedo" (Internet website www.axedo.co);
- "Fxfinancepro" e "Globalinvestfx" (Internet website https://fxfinancepro.com and related page https://client.fxfinancepro.com);
- Think Market 247 Ltd (Internet website www.thinkmarket247.com and related page https://trade.thinkmarket247.com);
- Donnybrook Consulting Ltd (Internet websites https://energy-markets.io, https://energy-markets.cc and related page webtrader.energy-markets.cc);
- Universe Citizen Limited (Internet website www.fxcitizen.com).
The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 360.
The measures adopted by Consob can be consulted on the website www.consob.it.
The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.
Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.
To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.
-
Published: 13/01/2021
PRESS RELEASE
Consob has further extended for a three-months period, from 14 January 2021 to 13 April 2021, the transitional regime of enhanced transparency regarding changes in significant shareholdings and communication of investment objectives for companies with a shareholder base particularly widespread (as defined by Article no. 120 of the Consolidated Law on Finance - Tuf).
The resolution (resolution no. 21672 of 13 January 2021) extends, unless revoked early, the similar provisions already temporarily issued in April 2020 (resolutions no. 21326 and no. 21327 of 9 April 2020) and then renewed for further three months, first in July 2020 until 12 October 2020 (resolution no. 21434 of 8 July 2020) and then in October 2020 until January 2021 (resolution no. 21525 of 7 October 2020).
The further extension became necessary due to the continuing uncertainty about the evolution of the economic and financial situation generated by the COVID-19 epidemic.
In particular, as specified more in details in the press release of 10 April 2020, the transitional regime of enhanced transparency provides for:
a) the addition of a threshold of 1%, compared to the pre-existing one of 3%, as the minimum threshold upon exceeding which the obligation to communicate to the market, through Consob, of the investments acquired in large-capitalized listed ("non-SMEs") companies is triggered; for SMEs, on the other hand, the threshold of 3% is added before the threshold of 5%;
b) the addition of a threshold of 5%, compared to that of 10%, as the first threshold upon exceeding which the obligation to communicate to the market, through Consob, the "declaration of intentions" is triggered for the acquisition of shareholdings, that is, investment objectives for the subsequent six months.
The list of companies to which the enhanced transparency regime referred to in point a) is applied is the one most recently updated on 9 October 2020 (executive resolution no. 40/2020, only Italian version). However, it remains unchanged the list of companies to which the enhanced transparency regime referred to in point b) is applied.
-
Published: 11/01/2021
PRESS RELEASE
Decisions in favour of savers are increasing, the volume of compensation almost doubled, the number of appeals is increasing: these are some of the main data of the activity of the Alternative Financial Dispute Resolution Scheme (ACF) in 2020, the year of the health emergency from Covid, which saw a further consolidation of the role of ACF, the out-of-court resolution body for disputes between small investors and intermediaries, operating at Consob since 2017.
1,772 appeals received by the ACF last year (+5.6% compared to 1,678 in 2019). This brings the total number of appeals transmitted by savers in the first four years of activity to 7,113 (2017/2020).
The South was also confirmed in 2020 as the area of origin of the highest number of appeals (42.8%), followed by the Centre (32.4%) and the North (24.8%) of the country.
More than 100 million euro, the total value of the compensation claimed in 2020, ranging from a minimum of 94.66 to a maximum of 500,000 euro, corresponding to the limit of competence for the value of the ACF. The average value of individual disputes was just under 60,000 euro, in line with what was recorded in previous years. At the end of 2020, the total value of the compensation claimed in the four-year period exceeded the threshold of 400 million euro.
In 2020, 1,514 proceedings were concluded, an increase of 13.2% compared to 1,337 in 2019; on the other hand, 5,267 rulings in the four-year period 2017/2020.
The Board held 53 meetings (46 in 2019), making 1,060 decisions (853 in 2019), 65% of which were granted appeals, a 10% jump compared to the 2019 figure, when 55% of the appeals examined had been granted. The total value of the compensation awarded to savers almost doubled (+81.5%): 28.5 million euro in 2020 compared to 15.7 million euro recorded in 2019. This brings the total amount of compensation awarded from 2017 to date to 84.4 million, with an average per capita of about 40,000 euro.
There were 212 measures to settle disputes taken by the President in 2020 following a settlement agreement concluded directly between the parties. The figure, up 9.2% compared to 194 extinctions in 2019, confirms that the ACF is progressively establishing itself also as a reference point in the relations between savers and intermediaries, such as to favour the spontaneous resolution of disputes even before the Ombudsman decides. The four-year total of appeals terminated early thus rises to 676.
Cases of unacceptability/inadmissibility of appeals for detected and non-remediable irregularities are declining positively: 242 were the measures taken by the President in the last year (-16.5% from 290 in 2019), for a total of 1,298 in the four-year period. The progressive decrease in the situations of ascertained irregularities is a sign of a better knowledge of the ACF instrument by savers and its more suitable use.
At the same time, the number of savers who prefer to be assisted by a lawyer continues to grow (over 73% of the total in 2020, compared to 69% in 2019), despite the possibility of submitting the appeal to the ACF directly, without assistance and free of charge. The economic significance of financial disputes and the difficulties many savers still face in personally protecting their rights are contributing factors to this trend.
The intermediaries involved in the proceedings initiated before the Consob Ombudsman in 2020 were 89 (93 in 2019); 183 in total were the intermediaries receiving at least one appeal from January 2017 to date, compared to the approximately 1,100 intermediaries authorised to provide investment services currently participating in the ACF system.
The most critical areas found in the relations between savers and intermediaries proved to be, even in the year just ended, those relating to the information made available to clients at the time of the investment and to the illiquidity situations of securities widely placed in recent years among retail investors, which have made it impossible for many savers to dispose of the investments held, also often characterized by a significant decrease in value compared to the initial investment.
More than 3,200 decisions so far published and freely available on the institutional website (www.acf.consob.it), of which 1,200 published in 2020 alone, provide a varied and detailed picture of the most critical aspects that have emerged.
In this regard, it is desirable to align intermediaries' operating practices more closely with the ACF guidelines, as this, in addition to allowing the appropriate treatment of client's complaints, can nullify situations of potential conflict at birth, thus helping to strengthen the relationship of trust between the parties, an essential prerequisite to foster increasingly efficient and protected processes for the use of private savings.
-
Published: 05/01/2021
PRESS RELEASE
The Law Decrees no. 18/2020, so-called "Cura Italia", and no. 34/2020, so-called "Rilancio", have introduced tax incentives connected both with investment expenditures, i.e. "eco-" and "sisma-bonus", and with current expenditures, i.e. rents for non-residential use, which are given out to families and businesses in the form of tax credits. Most of these tax credits can be transferred to third parties by the beneficiaries.
In relation to this assignment, the "Coordination table between the Bank of Italy, Consob and Ivass on the application of IAS/IFRS" publishes a document by which clarifications are provided regarding the accounting treatment and the representation in the financial statements of these credits by the acquiring entity.
The document is therefore aimed at entities supervised by the three Authorities, given that the purchase of these loans may be of interest to banks, insurance companies and other financial intermediaries, and to all issuers required to the application of international accounting standards, regardless of the business operations compartment (industrial, banking and others).
The document aims to clarify some application doubts and ensure homogeneous behaviors by the operators.
The full text of the document is available on the websites www.consob.it, www.bancaditalia.it and www.ivass.it (only Italian version).
-
Published: 02/01/2021
MEASURES CONCERNING BRITISH FINANCIAL INTERMEDIARIES OPERATING IN ITALY AFTER BREXIT CONTAINED IN DECREE LAW NO. 183 OF 31 DECEMBER 2020
Article 22 of Decree Law No. 183 of 31 December 2020 (www.gazzettaufficiale.it/eli/id/2020/12/31/20G00206/sg) includes provisions affecting the operation of British financial intermediaries and insurance companies after the expire of the transitional period (31 December 2020) envisaged by the EU-UK Withdrawal Agreement.
In particular, Article 22 of the mentioned Decree Law extends some of the measures contained in Decree Law No. 22 of 25 March 2019, with a view to facilitate the correct and orderly management of the transition from the European passport regime to the national regime for companies of non-EU countries, in order to better safeguard clients' interest.
The provisions dealing with financial intermediaries providing investment services and activities are recalled hereafter, whereas for those specifically dealing with the performance of banking and insurance activities, please refer, respectively, to the websites of the Bank of Italy (https://www.bancaditalia.it/compiti/stabilita-finanziaria/informazioni-brexit/index.html) and of the Ivass (https://www.ivass.it/consumatori/azioni-tutela/brexit/index.html).
On condition that they applied, before 31 December 2020, for a new authorisation to operate in Italy as a non-EU country firm or an Italian investment firm to which hand over activities, it is foreseen that the British financial intermediaries may carry on the activities performed before the end of the transitional period until such time as the authorisation is either granted or refused, in any case no later than 30 June 2021. During such period the operation is limited to the activities for which an authorisation is sought and to the outstanding contractual relationships. Therefore it is not allowed neither the opening of new contractual relationships nor the modification of the outstanding ones, whereas it is allowed to perform the activities in connection with the management of the so-called «life-cycle event » for derivatives contracts not subject to clearing by a central counterparty.
The financial intermediaries that are allowed to continue their operation as referred to above are subject to the national regime applicable to the firms of non-EU countries and to the supervision of the competent Italian authorities thereon.
Those financial intermediaries that operate under the regime of the freedom to provide services are forbidden from providing their services to retail clients (as defined in Article 1, para. 1, point m-duodecies of the Consolidated Law on Finance) and to professional clients upon request (as defined in Article 6, para. 2-quinquies, point b, and para. 2-sexies, point b, of the Consolidated Law on Finance).
Those financial intermediaries that operate in Italy through the establishment of branches keep their adherence to the Italian alternative dispute resolution system (Arbitro per le Controversie Finanziarie) and are due to adhere to the Italian compensation system (Fondo Nazionale di Garanzia, FNG) according to what provided for under the relative statute. Within 30 days from the expire of the transitional period, the British financial intermediaries are due to contact the FNG to fulfil the adherence requirements, including through the payment of the inherent financial contribution. The said financial intermediaries are required to provide the clients with the relevant information thereon, as soon as possible and no later than forty days from 1 January 2021. The information to the clients are to be provided in a clear and simple language and shall include the details for the contact person dealing with further information or clarifications.
Should the authorisation to continue the activities in the Italian territory be refused, the British financial intermediaries are compelled to cease such non-authorised activities into the shortest time possible and, in any case, no later than three months after the communication of the refusal decision, according ways and times that are not detrimental to clients. During the wind-down period, the British financial intermediaries continue to be subject to the national regime applicable to non-EU countries firms and to the supervision of the competent Italian authorities thereon; during such period, the safeguards stemming from the adherence to the alternative dispute resolution system and to the compensation system are also ensured for the intermediaries operating in Italy through the establishment of branches and all intermediaries are bound by the same disclosure requirements as referred to above.
The Decree Law also includes specific provisions as concern the impacts on the outstanding contractual relationships with clients for those financial intermediaries that are compelled to cease their operation in Italy either because they did not apply to receive an authorisation or because the required authorisation was refused. Such intermediaries are due to refund the clients' money, financial instruments and other assets, according to the instructions received by them.
All British financial intermediaries providing investment services in Italy shall give their clients adequate information about the consequences of the Brexit on the outstanding contractual relationships.
MEASURES CONCERNING CLIENTS OF THE BRITISH FINANCIAL INTERMEDIARIES OPERATING IN ITALY RELATED TO BREXIT CONTAINED IN DECREE LAW NO. 183 OF 31 DECEMBER 2020
From 1 January 2021, after the expire of the transitional period provided for in the EU-UK Withdrawal Agreement, the exit of the United Kingdom from the European Union (Brexit) will have significant impacts on the performance of financial services to clients in the Union by British financial intermediaries. Such intermediaries will have to obtain a new authorisation to continue providing investment services in Italy, in compliance with the national regime for non-EU countries firms[1].
In 2020, the European and Italian authorities did all efforts to mitigate the possible negative consequences for clients. Consob recommended several times British financial intermediaries to orderly manage the transition to a new regime in connection with Brexit (http://www.consob.it/web/area-pubblica/brexit-consob) and, most recently, invited such intermediaries' clients to verify they had received adequate information about the actions taken to manage the said transition (http://www.consob.it/documents/46180/46181/p_release_20201112.pdf/f3be7240-f6a0-4a5a-81d8-4c56ab82427f).
Aiming at ensuring an orderly process, Article 22 of Decree Law No. 183 of 31 December 2020 includes specific provisions for safeguarding the clients of the financial intermediaries established in the United Kingdom.
In order to avoid the discontinuation of the investment services provided and to minimise the adverse effects for clients, the Decree foresees that, on condition that they applied, before 31 December 2020, for a new authorisation to operate in Italy, British banks and investment firms may carry on their activities until such time as the authorisation is either granted or refused by the Italian competent authorities[2], in any case no later than 30 June 2021. During such period the said intermediaries are not allowed neither the opening of new contractual relationships nor the modification of the outstanding ones. The clients of financial intermediaries that operate in Italy through the establishment of branches will be protected both by the Italian compensation scheme and by the Italian alternative dispute resolution system (ACF).
The British financial intermediaries are required to provide the clients with the relevant information on compensation scheme as soon as possible and, in any case, no later than 10 February 2021.
The Decree Law also provides that, in case the authorisation to continue the activities in the Italian territory is refused, British financial intermediaries are compelled to cease such non-authorised activities within a timeframe and in a way that is not detrimental to their clients; they will also have to manage the wind-down of the outstanding contractual relationships in the shortest possible time and, in any case, no later than three months after the communication of the refusal decision and in compliance with the contractually agreed terms. During the wind-down period, the safeguards stemming from the adherence of the financial intermediaries operating under the right of establishment of branches to the alternative dispute resolution system and to the compensation scheme are also ensured.
In all circumstances, British financial intermediaries providing investment services shall provide to clients adequate information about the consequences of Brexit on the outstanding contractual relationships.
Clients are invited to contact British financial intermediaries, especially if they weren't informed properly, in order to obtain all necessary information concerning the possibility to either continue or cease the contractual relationship with them.
Those financial intermediaries that are compelled to cease their operation in Italy, either because they did not apply to receive an authorisation or because the required authorisation is refused, are due to refund the clients' money, financial instruments and other assets, according to the instructions received by them. It is thus of the utmost importance that the clients provide the British financial intermediaries with all necessary information (eg. the account IBAN to receive the foreseen refund).
Clients intending to withdraw from their contracts, or to transfer any such contract to another intermediary authorised to operate in Italy, are again urged to act promptly, in compliance with the legal and contractual provisions (which may require specific procedures to be followed).
Consob is updating the list both of EU investment firms and of third country firms other than banks authorised to operate in Italy from 1 January 2021, also providing adequate evidence - in the specific section of its website (http://www.consob.it/web/consob-and-its-activities/investment-firms) - of British investment firms no longer authorised to provide investment services to Italian clients and of those that instead could carry on their activities by virtue of what provided for under Decree Law No. 183 of 31 December 2020.
Clients of banks and insurance companies are invited to look for additional information on the websites of, respectively, the Bank of Italy (https://www.bancaditalia.it/compiti/stabilita-finanziaria/informazioni-brexit/index.html) and the Ivass (https://www.ivass.it/consumatori/azioni-tutela/brexit/index.html).
[1] In particular, in the Consob Bulletin (http://www.consob.it/web/area-pubblica/bollettino) are published the decisions of authorisation of the British financial intermediaries, along with the specification of the services that these are allowed to perform and the possible inherent operational limitations, also in connection with the types of clients serviced.
[2] The law decree specifies that, after the end of the transitional period, the performance of investment services and activities under the regime of the freedom of providing services by investment firms and banks is forbidden with respect to retail clients (as defined in Article 1, para. 1, point m-duodecies of the Consolidated Law on Finance) and to professional clients upon request (as defined in Article 6, para. 2-quinquies, point b, and para. 2-sexies, point b, of the Consolidated Law on Finance).
-
Publication of the Consob Statistical Bulletin n. 17 – December 2020 (28 December 2020).
Published: 28/12/2020
The latest Statistical Bulletin published reports data on listed companies and financial intermediation in the first semester of 2020, highlighting the first markers of the economic crisis following the COVID-19 pandemic.
Market capitalization down by 16.4% and capitalization/GDP ratio at 33.5% in comparison to 33.1% at the end of 2019. Increase of the volume of traded shares (+ 23.5%) and equity derivatives (+ 8.8%), with respect to the first semester of 2019.
Overall drop in net profit of listed companies: insurance companies recorded profits of 1.7 billion Euros, non-financial companies listed on the MTA recorded net losses of around 5.6 billion Euros and a corresponding increase in the use of debt of approximately 6.1 billion, the banks report an overall negative profitability of 9 million Euros. The industrial companies listed on the AIM recorded losses of 9.6 million Euros.
Increase in the investor preference for liquid assets. Reduction in the value of financial instruments held with Italian intermediaries for investment and asset management services (-2.3%). The sum of the two quantities is stable. Growth of the weight of foreign securities in the equity portfolio of professional customers, at the expense of Italian ones. Retail customers take refuge in government bonds.
Reduction of 14.2% in bond issues of Italian banks (compared to the same period of 2019), due to public offers on the domestic market (-36.1%). Increase, on the other hand, of private offers to institutional investors (+ 29.5%).
Gross inflows from financial instruments increased by around 209 billion Euros (+ 17.9%), while inflows of insurance products with a prevalent financial content made by Italian intermediaries amounted to around 14.7 billion Euros (-33.4%).
Overall increase in business volumes relating to the provision of executive investment services (execution of orders + 31.3%, receipt and transmission of orders + 29.3%, trading on own account + 45.7%).
The assets managed by Italian intermediaries decreased (-1.9%) as well as the assets of foreign UCIs placed in Italy (-1.1%). -
Published: 22/12/2020
PRESS RELEASE
Washington D.C. / Rome, Dec. 22, 2020 - The Securities and Exchange Commission and the Commissione Nazionale per le Società e la Borsa (CONSOB) today announced the signing of a Memorandum of Understanding (MOU) concerning consultation, cooperation and the exchange of information regarding the supervision of regulated entities that conduct financial services business in the U.S., Italy, or both.
The MOU enhances the ability of the SEC and of the CONSOB to consult, coordinate, and share supervisory information with each other and facilitates the respective cross-border examinations of regulated entities.
SEC Chairman Jay Clayton said, "Today's MOU reaffirms the importance of cross-border collaboration with respect to the oversight of our respective registrants. Effective cooperation will benefit each of our financial markets and investors."
CONSOB Chairman Paolo Savona said, "Cross border supervision and oversight is at the forefront of the activity of securities regulators and this MOU is an important step forward".
-
Published: 22/12/2020
PRESS RELEASE
Rome - The Commissione Nazionale per le Società e la Borsa (CONSOB) today announced the signing of a Memorandum of Cooperation (MOC) with the Japan Financial Services Agency (JFSA) regarding cooperation and the exchange of information in the supervision and oversight of regulated firms that operate on a cross-border basis in Italy and Japan.
The MOC establishes a framework for cooperation, contemplates the sharing of information, and provides procedures for on-site visits.
-
Abusive financial services: Consob blacks out 5 websites (Press release of 21 December 2020)
Published: 21/12/2020
PRESS RELEASE
Consob has ordered the blackout of 5 new websites that abusively offer financial services.
The Authority availed itself of the powers deriving from the "Growth Decree" (Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet connectivity service providers to inhibit access from Italy to the websites through which financial services are offered without due authorization.
Below are the websites Consob has ordered to be blacked out:
- "Octaviotrade" (Internet website https://octaviotrade.com);
- Konstos Markets Ltd (Internet website www.stocklux.co);
- Salvax Limited (Internet website www.fxsuit.eu);
- "LiborTC Ltd" (Internet website https://libortc.com and related page https://client.libortc.com);
- Tradixa Ltd e All Media Eood (Internet website www.tradixas.com).
The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 354.
The measures adopted by Consob can be consulted on the website www.consob.it.
The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.
Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.
To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.
-
Published: 17/12/2020
PRESS RELEASE
On 15 December, a new procedure for accessing documents containing key information, the so-called KID of the PRIIPs - pre-assembled retail and insurance investment products - was defined with the obligation to make the PRIIPs-related information and structured data marketed in Italy accessible to Consob (Resolutions no. 21639 and n. 21640 of 15 December 2020).
At the same time, the Operating Instructions which identify the procedure of access to the KIDs and the related structured data by Consob have been adopted.
More specifically, according to the new regulation, the creators of PRIIPs are required to make the KIDs (in PDF format) and structured data (in XML format) available to Consob in their own reserved area within the Authority's SFTP server before the beginning of marketing.
Alternatively, but starting from January 1, 2022 only, the creators will be allowed to use a web interface system both with reference to KIDs and structured data.
In the identification of the structured data to be made accessible to Consob, an information set was defined consistent with the present requirements of the KID according to the European legislation and compatible with the one already adopted by the major data providers. Furthermore, the possibility of delegating the fulfilment of the said obligations to third parties was specifically regulated, thus allowing the creators to make use of external data providers who are already recipients of information flows consistent with the structured data requests envisaged by Consob.
The aforementioned resolutions provide for a transitional period on the basis of which:
a) the obligation to make the KID available in PDF format within Consob's SFTP server enters into force on 1 January 2021, while acknowledging to the creators of PRIIPs the possibility of opting, until 31 December 2021, for a alternative regime, consisting in the prior notification to Consob by PEC (certified e-mail) of the KIDs in accordance with the current regime. From 1 January 2022, the obligation is fulfilled by making the KID available on the SFTP server or by the web interface;
b) the obligation to make the information and structured data relating to the PRIIPs accessible to Consob applies from 1 January 2022; it is fulfilled by making it available on the SFTP server or by the web interface. If, however, the creators have decided to make the KIDs accessible on the SFTP server as early as January 1, 2021, starting from the same date they will also have to make the personal information about the creator of the PRIIP and information relating to the provision of the KIDs available.
The results of the consultation (held in the 30 July - 30 September 2020 period - only Italian version) with the contributions received, the explanatory report, Resolutions no. 21639 and n. 21640 of 15 December 2020 and the operating instructions are published on the Consob website.
Documents relating to the results of the consultation:
Explanatory report [PDF - Only Italian version] Operating instructions [PDF - Only Italian version] Annex 1 to operating instructions - Structured data [PDF - Only Italian version] -
Published: 17/12/2020
Based on the provisions of the Coordination Agreement entered into on 31 March 2006, Consob, the Bank of Italy and IVASS and have updated the list of Italian financial conglomerates i.e. groups of companies under common control whose exclusive or predominant activities consist of providing significant services in at least two different financial sectors (banking, securities, insurance).
The supervision of financial conglomerates is carried out pursuant to Legislative Decree 142/2005. This provides for supplementary supervisory instruments in addition to those used for sectoral supervision, with a view to systematically monitoring the capital adequacy and riskiness of each conglomerate as a whole, while taking account of the interconnections between the insurance and banking/financial activities of its members.
The list at 31 December 2019 comprises two financial conglomerates already subject to supplementary supervision last year. The Bank of Italy maintains its role as coordinator of one bank-led conglomerate, which includes institutions not categorized as 'significant', while IVASS is the coordinating authority for one insurance-led conglomerates.
The list omits financial conglomerates comprising 'significant' institutions, whose identification is assigned to the European Central Bank in the context of the Single Supervisory Mechanism.
The updated list of conglomerates identified at 31 December 2019 is available on the websites of the Bank of Italy, Consob and IVASS.
LIST OF ITALIAN FINANCIAL CONGLOMERATES
SUBJECT TO ADDITIONAL SUPERVISION
COORDINATED BY THE COMPETENT NATIONAL AUTHORITIES
WITH REFERENCE TO DATA AT DECEMBER 31, 2019
(Published on 17 December 2020)Conglomerate
Prevailing sector
Coordinating Authority
Generali
Insurance
IVASS
Mediolanum
Banking/financial
Bank of Italy
-
Published: 14/12/2020
The survey analyses the advisor-client relationship in order to understand its dynamics and identify areas for improvement connected to any informative and cognitive distortions.
The 2020 editionis dedicated to sustainable finance and the integration of ESG factors (Environment, Social, Governance) in the investment process of the investors.
-
Abusive financial services: Consob blacks out 4 websites (Press release of 11 December 2020)
Published: 11/12/2020
Consob has ordered the blackout of 4 new websites that abusively offer financial services.
The Authority availed itself of the powers deriving from the "Growth Decree" (Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet connectivity service providers to inhibit access from Italy to the websites through which financial services are offered without due authorization.
Below are the websites Consob has ordered to be blacked out:
- Investoomatic Limited (website www.investoomatic.com);
- Kiqiwk Holdings Intl Limited (website www.solutionmarkets.com);
- "ADV-Investment"(websites www.adv-investment.com and www2.adv-investment.com),
The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 349.
The measures adopted by Consob can be consulted on the website www.consob.it.
The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.
Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.
To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.
-
Published: 11/12/2020
PRESS RELEASE
Green light by Consob to the regulatory changes necessary to adapt the secondary legislation to the second European Directive on shareholder rights (Shrd2).
The changes involved the Regulation on related-party transactions (Rpt), the Issuers' Regulation and the Market Regulation.
As regards the discipline of related-party transactions, already largely consistent with the Shrd2, the main changes concern: a) the definition of the directors involved in a related-party transaction, who are required to abstain from voting; b) the reserve of competence to resolve upon the administrative body for the approval of major transactions, which is also extended to smaller companies, newly listed companies and those with widespread shareholding as well as cases of urgency. The solutions adopted aim, among other things, to maintain the flexibility provided by the legislation already in force.
On the other hand, as regards the Issuers' Regulations, the amendments concern: a) the transparency discipline regarding remuneration with regard to advertising and the contents of the related report on the remuneration policy and remuneration paid; b) the disclosure schemes, which are refined depending on the evolution of market practice; c) the discipline on the transparency of asset managers and voting consultants, with reference to which the methods and terms of compliance are indicated.
The resolutions adopted for amending the regulations identify adequate transitional arrangements for the application of the new provisions, taking into account the needs represented by the market to have an appropriate deadline for the entry into force of the new rules.
By way of this intervention, further amendments to the Issuers' Regulation were also adopted, which incorporate the new definition of "Small and medium-sized enterprises" (SMEs) as recently reformulated in the Consolidated Law on Finance.
The text of the resolutions amending the regulations, the explanatory reports, the comments received throughout the consultation and the description of the following results are available, only in Italian language, on the www.consob.it website.
-
Presentation of sixth Report on financial investments of Italian households (10 December 2020)
Published: 10/12/2020
The Report presents evidence on the investment choices of Italian households with the aim of gaining insights as to how they manage investment decisions and the main risks they may take.
The Report is based on the Survey ‘The approach to finance and investment of Italian households' administered by GfK Italia to a representative sample of Italian retail financial decision-makers.
The 2020 Report contains two sections focused on knowledge and attitude towards SRIs and attitude towards digital assets and financial services, respectively.
Presentation slides by Nadia Linciano, Monica Gentile, Paola Soccorso [English version] -
Abusive financial services: Consob blacks out 5 websites (Press release of 4 December 2020)
Published: 04/12/2020
PRESS RELEASE
Consob has ordered the blackout of 5 new websites that abusively offer financial services.
The Authority availed itself of the powers deriving from the "Growth Decree" (Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet connectivity service providers to inhibit access from Italy to the websites through which financial services are offered without due authorization.
Below are the websites Consob has ordered to be blacked out:
- "BitOptionFx" (website https://bitoptionfx.com);
- BrokerMajor Ltd (website www.brokermajor-fx.com);
- Systemgates Ltd (website www.weltrade.com);
- RT GLOBAL LTD (website www.apptrader.com);
- The Capital Holding LLCeFX Publications INC (website www.beforexcapital.com).
The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 345.
The measures adopted by Consob can be consulted on the website www.consob.it.
The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.
Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviours, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorised, and, for offers of financial products, that a prospectus has been published.
To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.
-
Published: 30/11/2020
Consob notice of 30 November 2020
Notice on the Recommendation of the European Systemic Risk Committee of 25 May 2020 on liquidity risks arising from margin calls (CERS / 2020/6)
Last March, the economic crisis triggered by Covid-19 and the collapse of the oil market determined a sharp drop in asset prices and a marked increase in volatility on financial markets with the outcome, moreover, of significant collateral margin calls for both transactions cleared by a central counterparty (CCP) and bilaterally cleared transactions. In consideration of the liquidity risks produced by this situation, the European Systemic Risk Committee (ESRB) intervened with the Recommendation of 25 May 2020 (published in the Official Journal of the European Union of 20 July 2020), divided into four (sub-) recommendations (A, B, C, D) addressed to different authorities according to the objective to be pursued.
- Recommendation A, addressed to the competent authorities on CCPs and to the competent authorities on (direct) participants of CCPs and on financial and non-financial counterparties, is aimed at ensuring that sudden and significant changes in margins and haircuts - (i) by the CCPs, towards their participants; (ii) by participants towards their customers; and (iii) in the bilateral sphere - are limited;
- Recommendation B, addressed to the European Securities and Markets Authority (ESMA) and the CCP competent authorities, is aimed at ensuring that CCPs consider in their liquidity stress tests the consequences of the default of any two service providers, even if they do not qualify as direct participants;
- Recommendation C, addressed to the competent authorities on CCPs and to the competent authorities on participants, aims to ensure that CCPs limit the asymmetry in the payment of variation margins collected on an intraday basis and that liquidity constraints for CCP participants and their customers are minimized;
- Recommendation D commits: (i) all competent authorities to contribute to stimulating the international debate on the mitigation of pro-cyclicality in the provision of clearing services to customers and in securities financing transactions; (ii) the European Commission to make any standards on the subject that are set globally effective in EU legislation.
Consob, within its competences, will implement the relevant recommendations of the ESRB during its supervisory activity and throughout its participation in forums and international regulatory bodies.
THE CHAIRMAN
Paolo Savona -
Published: 30/11/2020
CFTC and CONSOB sign MOU for Supervision of Cross-Border Firms
Rome/Washington, D.C. - The Commodity Futures Trading Commission and the Commissione Nazionale per le Società e la Borsa (CONSOB) today announced the signing of a Memorandum of Understanding (MOU) regarding cooperation and the exchange of information in the supervision and oversight of regulated firms that operate on a cross-border basis in the United States and in Italy.
Through the MOU, the CFTC and the CONSOB express their willingness to cooperate in the interest of fulfilling their respective regulatory mandates in the context of supervising firms within the scope of the MOU. The MOU establishes a framework for cooperation, contemplates the sharing of information, and provides procedures for examinations.
"This MOU builds upon the longstanding cooperative relationship between the CFTC and CONSOB," said CFTC Chairman Heath P. Tarbert. "It will enhance our joint ability to supervise those who operate in our respective derivatives markets."
"I am pleased we have been able to agree to this MOU with the CFTC, which will support cross border supervision on the provision of investment services for the purpose of preserving the integrity of the market and protecting investors" added CONSOB Chairman Paolo Savona.
-
Abusive financial services: Consob blacks out 5 abusive sites (Press Release of 27 November 2020)
Published: 27/11/2020
PRESS RELEASE
Consob has ordered the blackout of 5 new websites that abusively offer financial services.
The Authority availed itself of the powers deriving from the "Growth Decree" (Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet connectivity service providers to inhibit access from Italy to the websites through which financial services are offered without due authorization.
Below are the websites Consob has ordered to be blacked out:
- B.O. Tradefinancials Ltd (website www.accessfxtrade.com)
- Capital Letter GMBH e Capital Letter Ltd (website www.brightfinance.co);
- NewTraders Holdings Ltd (websites www.toltechfx.com, www.cmcxxmarket.com and www.newtradersholdings.com).
The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 340.
The measures adopted by Consob can be consulted on the website www.consob.it.
The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.
Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviours, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorised, and, for offers of financial products, that a prospectus has been published.
To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.
Communications for investor protection
Published: January 19, 2021