Periodic review of the provisions regarding the rolling model for the management of hyper-dilutive capital increases: document for consultation (10 February 2020)

Consob launched a public consultation [Italian version only] on 10 February 2020 relating to the periodic review of the provisions concerning the so-called rolling model for managing capital increases. The consultation follows Communication no. 0088305 of 5 October 2016, by which the Commission had established the entry into force of the rolling model on 15 December 2016, providing specific recommendations to intermediaries, issuers and investors, aimed at facilitating a correct functioning of the rolling model itself. The rolling model can be applied only to hyper-dilutive capital increases and its effective application allowed to avoid the price incongruities which were previously recorded at the occurrence of capital increases.

Communication no. 0088305, in particular, established the three-year periodical review of the rolling model, pursuant to article 8 of the Regulation concerning the procedures for the adoption of general regulatory acts (resolution no. 19654 of 5 July 2016 [Italian version only]), all along with the evaluation of the suitability of the model itself to "achieve the objectives pursued in relation to the overall burden of the regulatory framework."

The document for consultation is structured in four paragraphs which describe, respectively: (1) the hyper-dilutive capital increases; (2) the rolling model; (3) the concrete application of the model, as well (4) some questions asked on the rolling model.

Comments to the document for consultation must be received by Consob online, not later than 10 March 2020, through the SIPE (Integrated External System).