Contents - CONSOB AND ITS ACTIVITIES

Sezioni Sito En

​​​​​​​

Nested Applications

Asset Publisher

Watch for Scams! Abusive financial services: Consob blacks out 5 abusive websites (Press release of 19 July 2024)

PRESS RELEASE

Consob has ordered the black-out of 5 new websites that offer financial services illegally.

The Authority availed itself of the powers deriving from the “Decreto crescita” ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet service providers to block access from Italy to websites offering financial services without the proper authorization.

Below are the websites Consob has ordered to be blacked out:

  • “First State Investments (Ireland) Limited” (website www.fsi.cm and related pages https://webtrader.fsi.cm and https://client.fsi.cm);
  • “FtseInvest” (website https://ftseinvest.com and related pages https://client.ftseinvest.com and https://webtrader.ftseinvest.com);
  • Partnersce(website www.partnersce.cm and related pages https://client.partnersce.cm and https://webtrader.partnersce.cm);
  • “AlfaMarket” (website https://alfamarketcapital.com and related page https://platform.platform-alfamarketpanel.eu);
  • “Mestieriplaza” (website www.mestieriplaza.co).

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 1125.

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.

 Press release PDF version

New standards issued by the IASB IFRS 18 and 19. Speech by Commissioner Carlo Comporti at the event organized by Organismo Italiano di Contabilità (Luiss Business School, Rome 18 July 2024)
Easier securitisation for Italian banks - Consob paves the way to overcome regulatory obstacles - More resources available to the real economy (Press release of 18 July 2024)

PRESS RELEASE

Easier securitisations for Italian banks. Credit institutions will be able to benefit from an option provided for by the European sector regulation, thanks to which the regulatory obstacles that to date have limited the operations of the domestic banking system will be overcome. This will free up more resources for financing the real economy.

The novelty concerns a type of securitisations, the so-called synthetic ones qualified as ‘Sts’ (simple, transparent and standardised), for which, according to EU regulations (Regulation 2017/2402), the correlation between the rating of the banks themselves and that of the State to which they belong is decisive.

At the reasoned request of Consob, the European Banking Authority (EBA) has issued a favourable opinion on the regulatory waiver (the so-called waiver) for most Italian banks, which will be able to resort to synthetic securitisations Sts even if their rating is not in line with the level envisaged by EU regulations. Consob, with its authorisation, has therefore made this opportunity viable.

Consob's measure facilitates Sts synthetic securitisation transactions and ‘unfreezes’ financial resources, making them available for other purposes with potential benefits for the economic system.

The resolution will enter into force the day after its publication in the Official Journal.

 Press release PDF version

Double-digit growth in 2023 for profits of banks (+67%) and insurance companies (+66) listed on the Milan Stock Exchange. Down are the results of other listed companies (-19.5%) and companies traded on Egm (-27%): data in the latest Consob Statistical Bulletin (Press Release of 17 July 2024)

Soaring profits in 2023 for banks and insurance companies listed on the Milan stock exchange on the main market, Euronext Milan (Exm), up 67% and 66% respectively compared to 2022. Sharply declining results, on the other hand, for other listed companies (-19.5 percent net income in 2023 year-on-year) and for companies traded (-17 percent) on Euronext Growht Milan (Egm), the unregulated trading platform created to facilitate the access of Small and Medium Enterprises (SMEs) to the capital market.

These are the key numbers in the third part of Consob's Statistical Bulletin for 2023, published today on the Institute's website.

 Press Release PDF version

Speech by Consob Commissioner Federico Cornelli at the Chamber of Deputies, Sala del Refettorio of Palazzo San Macuto, on the occasion of the conference on: "The impact of the Ai Act on the financial world" (16 July 2024)
SME - Capital Market Observatory launched - Two PhD scholarships launched - A new collaboration between Consob and the Università Cattolica del Sacro Cuore - Cetif (Consob and Università Cattolica del Sacro Cuore join press release of 15 July 2024)

PRESS RELEASE

Consob and Università Cattolica del Sacro Cuore announce the launch of the new Osservatorio Pmi (SMEs Observatory), an initiative that aims to become a point of reference on a national basis for the analysis of the conditions of access and permanence on the capital market by Italian small and medium-sized enterprises (SMEs).

The Observatory will focus, among other things, on the dynamics related to the appetite for financial innovation, the use of sustainable resources and the adoption of digital technologies. It will also study the incentive factors influencing the growth and development paths of SMEs.

The Scientific Director of the Project is Federico Rajola, Full Professor of Business Organisation and Director of Cetif - Research Centre on Technology, Innovation and Financial Services of the Università Cattolica del Sacro Cuore, assisted for Consob by Paola Deriu, Head of the Studies Division, and Daniela Costa, Councillor of the Economic Studies Office, and for Cetif by Chiara Frigerio, Associate Professor of Business Organisation and Secretary General of Cetif.

Doctoral Scholarships: For the purposes of the Observatory, two doctoral scholarships have been activated for young researchers, in Management and Innovation, financed by Consob, on the topics of innovative models with reference to finance and business organisation of SMEs

The call for PhDs is on the website of the Università Cattolica del Sacro Cuore with a deadline of 30 July 2024.

"This collaboration with Consob," commented Prof. Rajola, "provides an entirely new analysis perspective aimed at deepening our knowledge of the development dynamics of SMEs with reference to the capital market and the spread of organisational and digital innovation processes. The Observatory will provide useful data and insights to support SMEs in their strategic decisions'.

Press contacts:

For more information on the Pmi Observatory, visit our website at: https://www.cetif.it/research/progetto-di-ricerca-osservatorio-sulle-pmi-italiane

 Press release PDF version

Crowdinvesting: tax incentives, ease of disinvestment and more information: these are the needs of Italian operators for the growth of the sector - Consob publishes a working paper (15 July 2024)

Tax incentives, measures to facilitate the divestment, and better knowledge of opportunities: these are the main needs felt by market players in crowdinvesting sector, where a service provider operates a digital platform to facilitate the matching of investors and entrepreneurs seeking funding through alternative channels.

This is the conclusion of the latest FinTech Working Paper on "crowdinvesting made in Italy", the study developed by Consob and Università Politecnica delle Marche on the basis of experimental analyses and a survey among operators in the sector: enterprises, investors and crowdfunding service providers.

The Working Paper – edited by Valeria Caivano and Paola Soccorso (Consob) and by Caterina Lucarelli and Francesco James Mazzocchini (Università Politecnica delle Marche) – explores the crowdfunding phenomenon, the digital version of the old fund collection among relatives and friends, and more generally among investors potentially interested in supporting the start-up of an entrepreneurial project. The study, focusing on crowdinvesting, also analyses lending investment, i.e. the underwriting of corporate bonds or loans.

The full application, as of 11 November 2023, of the first organic European Regulation (EU Regulation 2020/1503) has not found our country unprepared. In 2013 Italy was indeed the first among the Member States to regulate investments in equity instruments through online platforms, and is currently ranking second in the EU in terms of the number of authorised providers, second only to France.

Service providers appear to be aware of their strengths and weaknesses and are preparing to seize the opportunities arising from the new regulatory framework, such as cross-border opening and the consequent boost to competitiveness and the progressive specialisation of platforms.

Capital strengthening transactions reserved for a single investor: non-standard POCs, SEDAs, SEFs and other transactions with similar characteristics - Launched consultation with the market on changes to the 3 May 2023 communication (11 July 2024)

Consob has launched consultation with the market on proposed revisions to Communication No. 1/23 of May 3, 2023, concerning "Capital strengthening transactions reserved for a single investor: non-standard POCs, SEDAs, SEFs and other transactions with similar characteristics - required under Article 114(5) of Legislative Decree No. 58/1998."

Comments to the consultation document must be received by Consob by August 10, 2024 online, via the Sipe (Integrated External System).

Watch for Scams! Abusive financial services: Consob blacks out 5 abusive websites (Press Release of 11 July 2024)

PRESS RELEASE

Consob has ordered the black-out of 5 new websites that offer financial services illegally.

The Authority availed itself of the powers deriving from the “Decreto crescita” ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet service providers to block access from Italy to websites offering financial services without the proper authorization.

Below are the websites Consob has ordered to be blacked out:

  • “EFS Lux” (website www.efslux.com and related page https://client.efslux.com);
  • “Finexleaders” (website https://finexleaders.co);
  • “OneCapital CFDS” (website https://24cfdcap.net and related page https://client.24cfdcap.net);
  • “Sigma Capital” (website https://sigmacapitals.uk);
  • “Algobot24” (website https://algobot24.com and related page https://client.algobot24.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 1120.

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.

 Press release PDF version

Seventh Edition of Financial Education Month (Edufin Committee Press Release of 10 July 2024)

PRESS RELEASE

Rome, July 10, 2024 - The Seventh Edition of Financial Education Month kicks off on November 1st. The event is promoted by the Committee for the Planning and Coordination of Financial Education Activities (Edufin Committee). Associations, institutions, businesses, foundations, public administrations and any other organization that wants to implement initiatives in the field of financial education can apply from September 2nd to October 18th, 2024, using the appropriate online form available at www.quellocheconta.gov.it.

From this year, the most important Italian event related to financial education is moving to November. 

To take into account the new location, events already scheduled for the month of October, such as those connected with World Investor Week (WIW) 2024 promoted by the International Organization of Securities Commissions (IOSCO), will also be allowed on the calendar.

As with previous editions, the Month will be an opportunity to promote, through events and initiatives throughout Italy, the development of financial, insurance and pension knowledge and skills and to draw attention to how important it is to acquire them at any age.

"Financial education: today for your tomorrow": this is the slogan chosen this year, which will accompany the event for future editions as well. The slogan represents an invitation to devote time to education on personal finance issues, not only to make more informed decisions, but also to cope with possible future contingencies. 

The Month presents a great novelty this year: the establishment of the Financial Legality Day, promoted by the Edufin Committee and the Guardia di Finanza and sponsored by the Ministry of Economy and Finance, aimed especially at young people in schools.

Confirmed again this year are two important events as part of the Month: the Social Security Education Week, scheduled from November 18th to 24th, and the Insurance Education Day. 

Seminars, webinars, educational workshops, and games - in-person and online - are scheduled from November 1st to 30th. All free and non-commercial initiatives that meet the requirements set by the Guidelines published on the portal www.quellocheconta.gov.it will be welcomed.

Membership will allow to use the official logo of the "Month" and to be included in the "Calendar of the Month" that can be consulted on the Edufin Committee website.

The Committee for the Planning and Coordination of Financial Education Activities is tasked with planning and promoting financial awareness and education initiatives to measurably improve savings, investment, retirement, and insurance skills.

The Committee, currently headed by Prof. Donato Masciandaro, is composed of: Ministry of Economy and Finance, Ministry of Education and Merit,

Ministry of Enterprise and Made in Italy, Ministry of Labor and Social Policy, Bank of Italy, Consob, Covip, Ivass, Ocf, National Council of Consumers and Users.

Beware of online trading "video games" Consob points out in a Warning about the risks associated with skill tests (Press Release of 8 July 2024)

Consob warns investors against the risks associated with offers, promoted on the web and social media, of exercises that simulate an online trading activity in a kind of finance video game aimed at passing skill tests and making a profit.

The operating scheme - variously referred to under various names, including shadow investment game, funding trading, financed trading accounts - consists, according to what the Authority points out in a Warning, in inducing network users to participate in online trading challenges, which in most cases assume enrolment in paid training courses. Those who pass the test are presented with the opportunity to switch from simulated trading to supposedly real trading with capital apparently made available by companies calling themselves proprietary firms (prop firms).

To entice the "players," the opportunity to share some of any profits made is floated to them.

Consob has received several reports from users who have signed up for such offers. The complaints concern both the level of difficulty of the tests, which are allegedly contrived to push "players" to try again, and the failure to share the alleged profits.

Similar warnings about the risks associated with these offers, which can lead to the loss of pledged amounts, have also been issued by the National Financial Market Regulatory and Supervisory Authorities in Belgium (Fsma) and Spain (Cnmv).

 Press Release PDF version

First meeting of the Committee for Macroprudential Policies (Join Press Release of 5 July 2024)

PRESS RELEASE

On 5 July 2024, the first meeting of the Committee for Macroprudential Policies, instituted by Legislative Decree 207/2023, was held at the headquarters of the Bank of Italy in Rome.

The meeting was attended by the Governor of the Bank of Italy Fabio Panetta, who chaired it, the President of the Italian Companies and Stock Exchange Commission (Consob) Paolo Savona, the President of the Institute for the Supervision of Insurance (IVASS) Luigi Federico Signorini, the Acting President of the Italian Pension Fund Supervisory Authority (Covip) Francesca Balzani and the Director General of the Treasury Riccardo Barbieri Hermitte.

The meeting began with a discussion of the draft internal rules for the Committee, which will be approved and published in the coming days.

The Committee then discussed the risks to the stability of the Italian financial system. In particular, it examined the risks stemming from the national and international economic situation, developments in the housing markets in various countries and the evolution of financial market conditions, as well as the dynamics of Italian households’ investment in certificates. Overall, the Committee’s assessment is that risks to financial stability in Italy are currently contained. The main vulnerabilities relate to the possible escalation of ongoing conflicts, weaker-than-expected economic activity, and changes in investors’ risk perception and appetite.

The discussion then moved to the measures and initiatives affecting macroprudential matters that the authorities had recently adopted or are in the process of adopting. In particular, with regard to the banking sector, the Bank of Italy presented the analysis carried out in support of the decisions on macroprudential capital buffers that it has adopted since last autumn.

The minutes of the meeting will be published at a later date.

 Press release PDF version

Contribution regime for the fiscal year 2024 - Redefinition of the supervisory fee payable by securitization entities and crowdfunding service providers: consultation document (4 July 2024)

Consob is submitting to the market a Consultation on proposals to redefine the supervisory fee payable by entities carrying out securitization transactions and crowdfunding service providers, made necessary as a result of changes in the relevant regulatory framework, effective as of January 2024.

Consob, in Resolution No. 22915 of 6 December 2023, determined, pursuant to Article No. 40 of Law No. 724/1994, for the year 2024, the entities required to contribute, the extent of the contribution due, as well as the manner and terms of payment of this contribution.

In particular, for securitization transactions in the current Contribution Scheme, Securitization Special Purpose Entities (SSPEs), originators, promoters and original lenders subject to Consob supervision pursuant to Article No. 4-septies.2 paragraph 6 of Legislative Decree No. 58/1998 are subject to the payment of the supervisory contribution. The pricing criterion adopted provides for the payment of a fixed amount per capita.

The Commission intends to redefine the contribution case by providing that the entity designated under Article No. 7 paragraph 2 of Regulation (EU) 2017/2402 (SECR), on which it is incumbent to fulfil the information obligations set forth in paragraph No. 1, first subparagraph, letters a), b), d), e), f) and g) of the same Regulation, and that the amount of the contribution, always calculated as a fixed amount, be diversified to take into account the different supervision carried out on the transactions under Consob's responsibility, pursuant to Articles Nos. 6 to 9 of the SECR (Article No. 4 septies.2, paragraph 6(b) of Legislative Decree No. 58/1998), compared to STS securitizations (Article No. 4 septies.2, paragraph 6(c) of Legislative Decree No. 58/1998).

Regarding crowdfunding service providers, with the enactment of Law No. 238 of 23 December 2021 (European Law 2019-2020) and Legislative Decree No. 30 of 10 March 2023, the primary legislation was adapted to Directive (EU) 2020/1504 and Regulation (EU) 2020/1503, respectively, on European crowdfunding service providers for businesses. Specifically, the Directive and Regulation supplemented the relevant regulations by allowing crowdfunding service providers to simultaneously promote both lending and financial instrument offerings (lending-based crowdfunding and investment-based crowdfunding). With Resolution No. 22720 of 1 June 2023, Consob adopted the Regulation on crowdfunding services in implementation of Regulation (EU) 2020/1503 and Articles Nos. 4-sexies.1 and 100-ter of the Consolidated Law on Finance (Tuf).

For the purpose of making the category subject to contribution, it is necessary to amend the regulations referred to the current Contribution Regime, punctually defining the subjective scope of application of the contribution under the new rules.

Regarding the charging criterion, in view of the start-up phase of the adoption of the new regulations, which does not allow to date to have available quantitative data referring to the activity (such as revenues or turnover), the fee will be commensurate with the number of authorized crowdfunding services and providing that the fee will be increased by an additional amount if the provider is also authorized to carry out individual management of loan portfolios.

Comments to the consultation paper should be received by 2 August 2024 online through SIPE - Integrated External System, or, at the following address: Consob - Divisione Strategie Regolamentari (Regulatory Strategies Division) - Via G. B. Martini, no. 3 - 00198 Rome.

Watch for Scams! Abusive financial services: Consob blacks out 5 abusive websites (Press Release of 27 June 2024)

PRESS RELEASE

Consob has ordered the black-out of 5 new websites that offer financial services illegally.

The Authority availed itself of the powers deriving from the “Decreto crescita” ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet service providers to block access from Italy to websites offering financial services without the proper authorization.

Below are the websites Consob has ordered to be blacked out:

  • “FusionLots” (website https://fusionlots.com and related page https://platform.fusionlots-techp.com);
  • “CM FX Trade” (website https://cmfxtrade.com and related page https://client.cmfxtrade.com);
  • “Capitalpartners24” (website https://capitalpartners.org);
  • “Alfacapitalmarket” (website https://alfacapitalmarket.com and related page https://client.alfacapitalmarket.com);
  • “Investax” (website www.investax.org).

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 1115.

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.

 Press release PDF version

Speech by Consob Commissioner Carlo Comporti on the occasion of the presentation of the annual report of the OCF, the supervisory body that keeps the register of financial advisors (27 June 2024)
25 June 2024, Consob's Annual Meeting with the Financial Market

On 25 June 2024 Consob's annual meeting with the financial market was held in Milan, at the headquarters of the Italian Stock Exchange in Palazzo Mezzanotte in Piazza Affari.

The video of the meeting is available trough this link: https://www.youtube.com/watch?v=QGvoXW7qbnU.

Message from President Mattarella on the occasion of CONSOB's 50th anniversary celebrations

 Speech by President, Professor Paolo Savona (only in Italian)

 Slides of the speech (only in Italian)

 Annual Report (2023) to the Ministry of Economy and Finance (only in Italian)

 Institutional video

ESMA fact-finding survey on the provision of services in crypto assets (21 June 2024)

Last November, Consob and the Bank of Italy, in collaboration with the Organismo degli Agenti in attività finanziaria e dei Mediatori creditizi - "OAM" (Body of Financial Agents and Credit Brokers), conducted an initial fact-finding survey in order to understand the level of interest of operators in carrying out activities in Italy that fall under the scope of Regulation (EU) 2023/1114 ("MiCAR"). 

As is well known, MiCAR will be applicable as of 30 December 2024, except for the provisions in Titles III and IV regarding Asset-Referenced Tokens ("ART") and Electronic Money Tokens ("EMT"), which will be applicable as of 30 June 2024. At the national level, the legislative decree for the implementation of the aforementioned regulation, which identifies the competencies of Consob and the Bank of Italy as the Supervisory Authorities in MiCAR, is in the process of being adopted soon.

In view of the implementation of MiCAR, the European Securities and Markets Authority ("ESMA") intends to develop a fact-finding investigation at the Union level as well.

The purpose of the ESMA survey is to obtain information regarding financial entities interested in conducting services for crypto-assets by making use of the notification procedure to National Competent Authorities (NCAs) under Article No. 60 of MiCAR.

Therefore, also with a view to updating the information acquired with the aforementioned national survey of last November, Consob and the Bank of Italy invite supervised entities, based in Italy and entitled to make use of the aforementioned notification procedure, to complete, by 26 July 2024, the ESMA questionnaire, available at https://forms.office.com/Pages/ResponsePage.aspx?id=aPIG5OdKgEyJlAJJPaAMAxMWlzIqkhMnpWtr90mna9UNDNFRDI0QjkyNzg3REI3SkxPU1pVSjdNSi4u.

Watch for Scams! Abusive financial services: Consob blacks out 6 abusive websites (Press Release of 21 June 2024)

Consob has ordered the black-out of 6 new websites that offer financial services illegally.

The Authority availed itself of the powers deriving from the "Decreto crescita" ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order Internet service providers to block access from Italy to websites offering financial services without the proper authorization.

Below are the websites Consob has ordered to be blacked out:

  • "Expo Trust" (website https://expo-trust.net and related page https://user.expotrust.net);
  • "Royal Dimex Ltd" (website www.royaldimex.com and related page https://trade.royaldimex.com);
  • "Real PremiumEU" and "Real PremiumEU Markets" (website www.realpremiumeu.com and related page https://client.realpremiumeu.com);
  • Investousit (website https://investousit.com and related page https://clientzone.investousit.com e https://webtrader.investousit.com);
  • "Lyxmont" e "Alfatrade" (websites www.lyxmont.com and https://alfatraders.org).

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 1110.

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 unauthorized initiatives.

 Press Release PDF version

Consob and Roma Tre University published the last Report on the financial advisor-investor relationship devoted to sustainability and investments (19 June 2024)

Sustainable finance: interesting topic! But advisors and investors need to talk about it more! Consob and Roma Tre University published the last Report on the financial advisor-investor relationship devoted to sustainability and investments

When it comes to sustainable investments, financial advisors and their clients still understand each other poorly. Investors are interested in sustainable investments, nevertheless there are widespread doubts about the risks of greenwashing, i.e. the actual achievement of environmental and social objectives.

The topic of sustainable finance is still new to be explored: advisors are increasingly called upon to play a role as financial educators and there is room for improvement in the relationship among professionals and investors. On other issues – e.g. the investment approach and the risk preferences exhibited by investors – a higher degree of agreement was found.

These are the main findings of the study (2024 Report on the advisor-client relationship. Mirroring analysis on sustainability and investments) realised by Consob together with the University of Roma Tre. The fourth edition of the survey, as usual, is based on the so-called 'mirroring' approach, which consists of submitting the same questionnaire to both advisors and their clients, and then analysing the similarities and misalignments in the responses. In line with previous years' editions, the research focuses on sustainability issues, summarised in the acronym ESG: E (Environment), S (Social) and G (Governance).

The Report was prepared by Paola Soccorso (CONSOB) and Massimo Caratelli (Roma Tre University) and was realised thanks to ANASF (Associazione Italiana Consulenti Finanziari), the Italian association of financial advisors, as well as the advisors and their clients who joined the survey.

Sustainability and profitability: environmental responsibility rewards balance sheet results - A Consob research, carried out using machine learning techniques, finds a positive relationship between ESG factors and companies' EBIT (17 June 2024)

Is there a link between sustainability and corporate profitability? The answer is yes.

This is the hypothesis tested and presented in Consob's Sustainable Finance Series, Issue No. 4, entitled 'The Impact of the ESG Factor on Industrial Performance'.

The study - by Marta Palynska, Francesca Medda, Valeria Caivano, Giovanna Di Stefano and Francesco Scalese - analyses the impact of companies’ sustainability profile on their profitability results. In particular, it examines the relationship between the ESG score, also considering its three pillars E (Environmental), S (Social) and G (Governance), and EBIT, Earnings Before Interest and Taxes, used as indicator of the earnings profile. The research is based on data from over 850 European and US companies in the period 2007-2021.

The results indicate that the environmental score (pillar E) is more strongly associated with earnings performance than those relative to the other two pillars (S and G). Additionally, the work highlights   differences in the results for European versus US companies, which may be ascribed to the differing regulatory frameworks in the two jurisdictions.

Finally, the research shows how machine learning techniques can be usefully applied to the analysis of sustainable finance topics, although critical issues related to the quality of the ESG metrics currently available remain. The ongoing definition of sustainability standards and metrics will facilitate the collection and analysis of structured data. Furthermore, the evolution of ESG rating regulations will increase transparency about the underlying methodologies.

15184Warnings

Warnings

Communications for investor protection
Latest update: July 15, 2024

 

Consob Activity - Newsletter

Consob Newsletter

Go to last issue of Consob Newsletter (no. 26 of July 15, 2024)