News of the week:
 ACF: increased compensations to savers and appeals accepted. “Plus” sign in the activity budget in 2020
 Accounting treatment of tax credits purchased pursuant to the “Cura Italia” and “Rilancio” Decree-Laws
 SAVE THE DATE. Today 11 January 2021, at 3.00 pm - the seventh seminar of the online cycle "Securities markets: trends, risks and policies”
 SAVE THE DATE. 13 January 2021, at 3.00 pm - the eighth seminar of the online cycle "Securities markets: trends, risks and policies"
 Press release addressed to British intermediaries operating in Italy on the Brexit provisions of the “Milleproroghe” Decree
 Press release addressed to the clients of British intermediaries operating in Italy in relation to Brexit
 Investor protection warnings from other regulatory authorities

Commission decisions

- NEWS OF THE WEEK -

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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 (http://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.

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Decree-Laws No. 18/2020, known as "Cura Italia", and No. 34/2020, known as "Rilancio", introduced tax incentives linked both to investment expenditure, such as "eco" and "seismabonus", and to current expenditure, such as rents for non-residential use, and paid to households and businesses in the form of tax credits. Most of these tax credits can be transferred by the beneficiaries to third parties.

In relation to this sale, the "Consob, Bank of Italy and IVASS coordination group on the application of IAS/IFRS" has published a document providing clarification on the accounting treatment and on the presentation of these receivables in the financial statements by the entity that purchases them.

The document is therefore addressed to the subjects supervised by the three authorities, given that the purchase of these receivables may be of interest to banks, insurance companies and other financial intermediaries, and to all issuers required to apply international accounting standards, regardless of the sector in which the undertaking operates (industrial, banking and other).

The document aims to clarify certain doubts in application and to ensure that operators behave in a uniform way.

The full text of the document is available at the sites www.consob.it, www.bancaditalia.it and www.ivass.it.. 

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Today, 11 January, at 3 p.m. Professor Yazhou Ellen HE (University of Manchester) will present a study entitled: "ES Risks and Shareholder Voice".

The webinar is the seventh one in a series of 10 seminars organised

by Consob, ESMA and Bocconi University, through the Baffi – Carefin research centre, on the following topics: market microstructure, post-trading and market efficiency; corporate governance and sustainability; investor protection and financial innovation.

The event will be introduced by Nadia Linciano (Head of the Consob Economic Studies Office) and the paper will be discussed by Professor Giovanni Petrella (Cattolica University).

Link for joining: https://global.gotomeeting.com/join/755296861. 

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On 13 January, at 3.00 pm Prof. Nicola Borri (Luiss University) will present a study entitled: "Cryptomarket Discounts".

The webinar is the eighth one in a series of 10 seminars organised by Consob, ESMA and Bocconi University, through the Baffi – Carefin research centre, on the following topics: market microstructure, post-trading and market efficiency; corporate governance and sustainability; investor protection and financial innovation.

The event will be introduced by Claudia Guagliano (ESMA) and the paper will be discussed by Maha Al-Saadi (Deutsche Börse).

Link for joining: https://global.gotomeeting.com/join/755296861.

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Article 22 of Decree-Law no. 183 of 31 December 2020 (so-called "Milleproroghe") contains provisions on the operation of British intermediaries and insurance companies after the expiry of the transitional period (31 December 2020) provided for in the Agreement for the withdrawal of the United Kingdom from the European Union.

The article aims, through the extension of some provisions of Decree-Law no. 22 of 25 March 2019, to facilitate an orderly management of the transition from the regime based on the principle of mutual recognition at European level to that applicable to intermediaries from third countries and, therefore, greater protection of the interests of clients.

Below are the provisions relating to intermediaries providing investment services (hereinafter also the "intermediaries"), referring for those providing banking and insurance activities on the websites, respectively, 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).

It is envisaged that intermediaries who have submitted, by the date of entry into force of the aforementioned decree-law, an application to operate in Italy as a third-country company or for the establishment of an Italian intermediary to whom the activity has been transferred but for which authorisation has not yet been granted or refused, can continue to provide the service/activity already exercised before the end of the transition period, until the issue of the authorisation and in any case no later than 30 June 2021.

During this period, it is allowed to carry out only the activities for which authorisation has been requested, limiting itself to the management of existing relationships. Therefore, the acquisition of new clients is not allowed, nor the modification of existing relationships while «life-cycle event » activities are allowed for existing derivative contracts not subject to compensation by a central counterparty.

Intermediaries entitled to continue their activities until the authorisation is granted (and in any case no later than 30 June 2021) are subject to the national legislation applicable to third-country companies and to the supervision of the competent Italian authorities.

Intermediaries operating under the freedom to provide services may not provide investment services in respect of retail clients as defined in Article 1, paragraph 1, letter m-duodecies, of the Consolidated Law on Finance, and of professional clients on request as identified pursuant to Article 6, paragraph 2-quinquies, letter b), and paragraph 2-sexies, letter b) of the Consolidated Law on Finance.

Intermediaries providing investment services in Italy through the establishment of a branch maintain adherence to the Italian out-of-court dispute resolution system (Alternative Financial Dispute Resolution Scheme) and adhere to the National Guarantee Fund (FNG) according to its By-Laws.

Within thirty days of the end of the transitional period, British intermediaries will have to contact the FNG and finalise the acts required for accession, including the fulfilment of their contribution obligations.

In order to allow clients to know which compensation system is intended to protect them, the intermediaries mentioned above must provide the same clients with adequate information as soon as possible and, in any case, no later than forty days from the day following the end of the transition period.

Communication to clients must be clear and formulated in a simple language. Clients must also be made aware of the person to be contacted for further information or clarification.

In the event of a refusal of authorisation, British intermediaries must cease activities for which they have not received authorisation as soon as possible and in any case no later than three months after the refusal has been communicated, in a manner and time that is not prejudicial to clients.

Even during this period, these intermediaries continue to be subject to the provisions applicable to third-country undertakings and the related powers of the supervisory authorities; for intermediaries operating with branches, the protections represented by out-of-court dispute resolution systems and Italian compensation systems, as well as the information obligations provided for above, are also ensured.

Finally, the decree contains specific forecasts with regard to the effects on existing contractual relationships for intermediaries called upon to cease their activity, also following failure to submit a specific application for authorisation or refusal of authorisation. These intermediaries must, among other things, return the cash, assets and financial instruments to clients, in accordance with the instructions received from the clients themselves.

All British intermediaries providing investment services in Italy are required to provide clients with adequate information about the effects of Brexit on existing contractual relationships.

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From 1 January 2021, after the expiry of the transitional period provided for in the Withdrawal Agreement, the exit of the United Kingdom from the European Union (Brexit) will have significant implications on the provision of financial services to European clients by British intermediaries.

The latter can no longer operate in Italy on the basis of the principle of mutual recognition and can only provide investment services if they have obtained a new authorisation in Italy under the current domestic regime for third-country undertakings.

In this regard, it should be noted that the Consob Bulletin (http://www.consob.it/web/area-pubblica/bollettino) contains the authorisation resolutions of British investment firms, indicating the authorised services and any operational or clientele limitations.

During 2020, the Italian and European authorities intensified their efforts to limit the possible inconvenience for clients. Consob has repeatedly called the attention of British intermediaries to an orderly management of the changed operating conditions resulting from Brexit (http://www.consob.it/web/area-pubblica/brexit-consob) and, more recently, has also addressed the clients of these intermediaries, inviting them, among other things, to verify that they have received adequate information (press release of 12 November 2020).

In order to ensure orderly management of this process, the Milleproroghe Decree-Law laid down specific rules to protect the clients of intermediaries based in the United Kingdom.

In particular, in order to avoid discontinuities in the provision of investment services and to minimise inconvenience to clients, it was envisaged that investment firms and banks in the United Kingdom which submitted to Consob and Bank of Italy respectively an application for authorisation not yet finalised on 31 December can still operate until authorisation is obtained.

The decree specifies that investment firms and banks are not allowed to continue to provide, at the end of the transition period, investment services and activities under the freedom to provide services in respect of retail clients as defined in Article 1, paragraph 1, letter m-duodecies of the Consolidated Law on Finance, and of professional clients on request as identified pursuant to Article 6, paragraph 2-quinquies, letter b), and paragraph 2-sexies, letter b) of the Consolidated Law on Finance.

During this "grace period" – from 1 January 2021 until the issue of the authorisation and in any case no later than 30 June 2021 - these intermediaries will not be able to enter into new contracts or modify existing ones; clients of intermediaries operating with branches will be assisted by an Italian compensation system and will be able to continue to access to the Alternative Financial Dispute Resolution Scheme (ACF).

In order to enable investors to know which compensation scheme is responsible for protecting their savings, UK investment service providers should provide their clients with the information required by law as soon as possible and in any event no later than 10 February 2021.

The decree also provides that, in the event of refusal of authorisation, intermediaries must cease unauthorised investment services and activities, in a manner and time such as not to prejudice clients; they must also carry out all the operations necessary for the orderly closure of relationships already in place, as soon as possible, and in any case within three months from the date of refusal, in compliance with the notice periods for the termination of contracts. Also during this period, the protections of out-of-court dispute resolution systems and investor-compensation systems for British intermediaries operating in Italy with branches will be ensured.

The decree also requires British investment service providers, in particular if they have benefited from the "grace period", to ensure adequate information to clients on the effects of Brexit.

However, clients are invited to contact directly the intermediaries with whom they have relations, especially if they have not received the necessary information, to obtain all the indications on the possibility of continuing or not the existing relationships.

With regard to intermediaries in the United Kingdom who cease to provide investment services and activities in Italy (also following the refusal of authorisation), the decree provides for the return to clients of the cash, assets and financial instruments pertaining to them, in accordance with the instructions provided by the clients themselves. It is therefore essential that clients promptly provide instructions to intermediaries (for example, indicating an Iban to credit the sums).

Clients wishing to withdraw from the contract or transfer it to another authorised operator are again recommended to activate themselves promptly and in compliance with the contractual and legal provisions (which may provide for special methods of exercising the rights of clients).

Consequently, Consob will update the list of EU investment companies and those from non-EU countries authorised to operate in Italy from 1 January 2021, also providing adequate evidence in the appropriate section of its institutional website (http://www.consob.it/web/area-pubblica/imprese-di-investimento) of the companies in the United Kingdom no longer authorised to offer services to Italian clients as well as those that may continue to operate pursuant to the aforementioned decree-law.

Clients of British banks and insurance companies may refer to the information contained on 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), respectively.

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The supervisory authorities of the United Kingdom (Financial Conduct Authority - FCA), Spain (Comisión Nacional del Mercado de Valores - CNMV), Ireland (Central Bank of Ireland – CBI), Luxembourg (Commission de Surveillance du Secteur Financier - CSSF), Austria (Financial Market Authority - FMA), Belgium (Financial Services and Markets Authority - FSMA) and Portugal (Comissão do Mercado de Valores Mobiliários – CMVM), report the companies and websites offering investment, financial and insurance services without the required authorisations.

Reported by the FCA:

• The Best UK Investment (https://offer.thebestukinvestment.com);
• Guardian Bonds (www.guardian-bonds.com);
• First UK Bonds (http://www.firstukbonds.com);
• Investor Checker (www.investorchecker.com, https://investchecker.online);
• Team PLTNM (https://teampltnm.com);
• Codex Crypto (https://www.codexcrypto.com), clone of a licensed company;
• Coinsoft (https://www.coinsoft.io);
• Compare Uk Bonds / Compare-uk-bonds (www.compare-uk-bonds.co.uk);
• Plutus.pro (www.Plutus.pro; www.plutopro.com);
• Secure Finance (https://www.securefinanceltd.com), clone of a licensed company;
• Compare Investment Group (www.compareinvestmentgroup.co.uk);
• Smart Investor Centre (www.smartinvestorcentre.co.uk);
• FRCM Management (www.financereserve.com), clone of a licensed company; 
• Global Trade (https://www.global-trade.io);
• GPK Financial Planning Ltd / GPK Financial (www.gpkfinancial.co.uk), clone of a licensed company;
• Emoney Finance (EMF) (www.emoneyfinance.co.uk);
• UK Saving Bonds (www.uksavingbonds.com);
• Baird Europe (Baird Capital) / Baird Financial Services (www.accountsbaird.com, www.baird-europe.com), clone of a licensed company;
• Covestium Limited  Investment Consultant (), clone of a licensed company;
• bondcompare.org;
• Full Funding Circle / Fullfunding Circle (www.fullfunding-circle.com), clone of a licensed company;
• Phase Asset Management (www.phaseassetmanagement.com, www.investment.phaseassetmanagement.com), clone of a licensed company;
• Lombard London / Lombard AM (Lombardlondon.com, Lombardam.com), clone of a licensed company.

Reported by the CNMV:

• KW Investments Limited / Key Way Solutions Ltd (https://clicktrades.com/es), clone of a licensed company.

Reported by the CBI:

• Pershing Securities Limited (http://www.pershingsecuritieslimited.com), clone of a licensed company;
• SGZ Bank Ireland (https://sgz-bank.com), clone of a licensed company;
• MAN Asset Management (www.man-am.com), clone of a licensed company;
• MyCreditBucks (https://www.mycreditbucks.com);
• Atlantic Capital Management (www.atlanticcm.co.uk), clone of a licensed company;
• TD Global Finance (https://tdglobalfinance.co.uk; www.tdgfinance.co.uk; www.tdglobal-finance.co.uk; https://td-finance.com), clone of a licensed company;
• Sands Capital (www.sandscap.co.uk), clone of a licensed company;
• Elkwood Financial (www.elkwoodfinancial.com), clone of a licensed company;
• Custom Markets / QIAIF PLC (www.cmqplc.com), clone of a licensed company.

Reported by the CSSF:

• 500.trade (www.500.trade);
• Global Markets Association (www.gm-associations.com).

Reported by the FMA:

• Paragon Finance (www.paragon-finance.io, www.paragon-finance.cc), previously reported by the FCA (see "Consob Informa" no. 45/2020 of 14 December 2020);
• CMarket (https://www.cmarket.cc) previously reported by the CNMV (see "Consob Informa" no. 29/2020 of 27 July 2020);

Reported by the FSMA:

• Bitcoin Buyer;
• Bitcoin Prime (www.bitcoinprime.net);
• Immediate Edge (www.immediate-edge.co);
• BitCapitals (www.bit-capitals.com);
• Brokerunity (www.brokerunity.com);
• Bubblext (www.bubblext.com);
• Cryptenix (www.cryptenix.com);
• FDI Funds (www.fdifunds.com);
• Financial Reserve Capital Management (www.financereserve.com);
• GCG International (www.gcginternational.net);
• GFX Royal (www.gfxroyal.com);
• Global CTB (www.globalctb.com);
• Migotrade (www.migotrade.com);
• Safe IG (www.safeig.com);
• Asse-groupe (www.asse-groupe.com);
• Brookfield Investment Fund PLC (https://brookfieldinvestmentfundsplc.net), clone of a licensed company;
• Create Capital Invest (www.createcapitalinvest.com);
• Patrimoine Connect (https://4gste3-12qxt9901mnd.com);
• www.vuelex.com.

Reported by the CMVM:

• Grand Capital Ltd (https://pt.grandcapital.net);
• João Fernandes, (https://joaovfernandes.pt);
• https://market.net24-secure.com, clone of a licensed company.

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• The inclusion of Upsidetown Srl, with registered office in Milan, in the register of operators as per article 50-quinquies, paragraph 2, of Legislative Decree no. 58 of 24 February 1998 was ordered (resolution no. 21662 of 22 December 2020).
• The inclusion of Foxcrowd Srl, with registered office in Florence, in the register of operators as per article 50-quinquies, paragraph 2, of Legislative Decree no. 58 of 24 February 1998 was ordered (resolution no. 21661 of 22 December 2020).
• Pursuant to Article 28, paragraph 6, of Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance), the Goldman Sachs Asset Management International (private unlimited company), under the freedom to provide services in Italy, to qualified counterparties and/or professional clients as identified pursuant to Article 6, paragraph 2-quinquies, letter a) and paragraph 2-sexies, letter a) of the same Consolidated Law on Finance, has been authorised to provide the investment services referred to in Article 1, paragraph 5, letters b), d), e), f) of Legislative Decree no. 58 of 24 February 1998 without holding, even temporarily, clients' cash and financial instruments (execution of orders on behalf of clients, portfolio management, receipt and transmission of orders concerning one or more financial instruments, investment advice) as well as ancillary services referred to in nos. 4, 5 and 7 of Annex 1, section B, of Legislative Decree no. 58 of 24 February 1998 (exchange service when said service is linked to the provision of investment services, investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments, investment services and activities, as well as ancillary services of the type referred to in Sections A or B, linked to derivative instruments referred to in Section C, points (5), (6), (7) and (10), where linked to the provision of investment or ancillary services.The resolution will take effect from the day after the date of conclusion of the transitional period provided for in the agreement for the withdrawal of the United Kingdom from the European Union, therefore from 1 January 2021. From the effective date, the Goldman Sachs Asset Management International (private unlimited company) will operate in Italy in accordance with the provisions applicable to third-country investment companies pursuant to the Consolidated Law on Finance and will be subject to the supervisory regime provided therein for such operations (Resolution no. 21667 of 29 December 2020).
• Pursuant to Article 28, paragraph 6, of Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance), MFM Investment Ltd, under the freedom to provide services in Italy, to retail clients and/or professional clients as identified pursuant to Article 6, paragraph 2-quinquies, letter a), and paragraph 2-sexies, letter a) of the same Consolidated Law on Finance, has been authorised to provide investment services referred to in Article 1, paragraph 5, letters b), d), e), f), of Legislative Decree no. 58 of 24 February 1998 (execution of orders on behalf of clients, portfolio management, reception and transmission of orders, investment advice) as well as ancillary services referred to in Annex 1, section B, of Legislative Decree no. 58 of 24 February 1998 (custody and administration of financial instruments on behalf of clients, including custody and related services such as cash/collateral management and excluding the securities account management function at the highest level). The resolution will take effect from the day after the date of conclusion of the transitional period provided for in the agreement for the withdrawal of the United Kingdom from the European Union, therefore from 1 January 2021. From the effective date, MFM Investment Ltd will operate in Italy in accordance with the provisions applicable to third-country investment companies pursuant to the Consolidated Law on Finance and will be subject to the supervisory regime provided therein for such operations (resolution no. 21668 of 29 December 2020).
• Pursuant to Article 28, paragraph 6, of Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance), Barclays Capital Securities Limited, under the freedom to provide services in Italy, to qualified counterparties and/or professional clients as identified pursuant to Article 6, paragraph 2-quinquies, letter a), and paragraph 2-sexies, letter a) of the same Consolidated Law on Finance, has been authorised to provide investment services referred to in Article 1, paragraph 5, letters a), b), e), of Legislative Decree no. 58 of 24 February 1998 (trading on one’s own account, execution of orders on behalf of clients, reception and transmission of orders).The resolution will take effect from the day after the date of conclusion of the transitional period provided for in the agreement for the withdrawal of the United Kingdom from the European Union, therefore from 1 January 2021. From the effective date, Barclays Capital Securities Limited will operate in Italy in accordance with the provisions applicable to third-country investment companies pursuant to the Consolidated Law on Finance and will be subject to the supervisory regime provided therein for such operations (Resolution no. 21669 of 29 December 2020).
• Pursuant to Article 28, paragraph 6, of Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance), Jane Street Financial Limited, under the freedom to provide services in Italy, to qualified counterparties and/or professional clients as identified pursuant to Article 6, paragraph 2-quinquies, letter a), and paragraph 2-sexies, letter a) of the same Consolidated Law on Finance, has been authorised to provide investment services referred to in Article 1, paragraph 5, letters a) and b) of Legislative Decree no. 58 of 24 February 1998 (trading on one’s own account, execution of orders on behalf of clients).The resolution will take effect from the day after the date of conclusion of the transitional period provided for in the agreement for the withdrawal of the United Kingdom from the European Union, therefore from 1 January 2021. From the effective date, Jane Street Financial Limited will operate in Italy in accordance with the provisions applicable to third-country investment companies pursuant to the Consolidated Law on Finance and will be subject to the supervisory regime provided therein for such operations (Resolution no. 21670 of 29 December 2020).
• Pursuant to Article 28, paragraph 6, of Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance), Jefferies International Limited, under the freedom to provide services in Italy, to qualified counterparties and/or professional clients as identified pursuant to Article 6, paragraph 2-quinquies, letter a), and paragraph 2-sexies, letter a) of the same Consolidated Law on Finance, has been authorised to provide investment services referred to in Article 1, paragraph 5, letters a), b), e) of Legislative Decree no. 58 of 24 February 1998 without holding, even temporarily, clients' cash and financial instruments (trading on one’s own account, execution of orders on behalf of clients, receipt and transmission of orders) as well as ancillary services referred to in Annex 1, section B, of Legislative Decree no. 58 of 24 February 1998 (exchange service when said service is linked to the provision of investment services, investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments, investment services and activities, as well as ancillary services of the type referred to in Sections A or B, linked to derivative instruments referred to in Section C, points (5), (6), (7) and (10), where linked to the provision of investment or ancillary services).The resolution will take effect from the day after the date of conclusion of the transitional period provided for in the agreement for the withdrawal of the United Kingdom from the European Union, therefore from 1 January 2021. From the effective date, Jefferies International Limited will operate in Italy in accordance with the provisions applicable to third-country investment companies pursuant to the Consolidated Law on Finance and will be subject to the supervisory regime provided therein for such operations (Resolution no. 21671 of 29 December 2020). 

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