Regulatory update

AML

FAQ on gold discipline

UIF

Through this document, the Authority clarifies the most recurring application issues regarding the declaratory requirements provided for by the rules on gold referred to in Law no. 7/2000.

The European Commission has published the consultation on "Digital euro"

#N/D

The consultation, which will continue until June 14, 2022, aims to collect comments on the practicality of the digital euro, that is, a single digital currency that can be used in parallel with banknotes and coins. Subsequently, an impact assessment will be prepared also taking into account the consultations conducted by both the European Commission and the European Central Bank (ECB) (the latter already concluded).

Document published on the prevention of financial crime phenomena related to Covid-19 and PNRR

UIF

The document contains indications for the prevention of financial crime phenomena related to Covid-19 and the PNRR

 

Banking Services

Qualification as a small and non-complex entity.

BANK OF ITALY (BOI)

Small and not complex body: the Bank of Italy does not exercise national discretion on the threshold of 5 billion and therefore confirms this criterion to qualify these bodies.

ABI has updated the Guidelines for the valuation of properties as collateral for credit exposures

EBA

ABI has updated the Guidelines for the valuation of properties to guarantee credit exposures with which the transparency and correctness of the valuation procedures are further strengthened

ABI

ABI has updated the "Guidelines for property valuation".

In particular, the Guidelines have been updated: i. the EBA guidelines on the granting and monitoring of loans; ii. the 36th update of the "Supervisory Provisions for Banks" of the Bank of Italy; iii. to the most recent versions of the international (International Valuation Standards, IVS - 2022), European (European Valuation Standards, EVS - 2020) and the RICS-2022 Global Valuation Standards. "

Bank of Italy has announced the implementation of the Guidelines of the European Banking Authority on the "management of impaired and concessional exposures"

BANK OF ITALY (BOI)

Bank of Italy has implemented the guidelines of the European Banking Authority on management of impaired exposures and subject to concessions "(EBA / GL / 2018/06)" with consequent repeal of the Guidelines adopted in 2018.

1. the criteria for developing and implementing NPE strategies;
2. define the governance and management controls of the NPE workout processes, as well as the monitoring and implementation of early warning tools;
3. describe the characteristics for the provision of forbearance measures, the approaches that institutions must follow for the definition of the credit quality assessment policies of the debtor, as well as the definition of the monitoring process and the comparison with other workout methods;
4. specify the criteria for defining NPEs, provisions and write-offs as well as the criteria for the evaluation and monitoring of securities and real estate guarantees, the definition of governance measures, the rules for the experts and the valuation methods;
5. outline the criteria that the Competent Authorities (CA) must follow in the SREP credit risk assessment "

Bank of Italy has published the "Consultation document on the ownership structure of banks, financial intermediaries, trust companies, IMEL, IP, SIM, SGR, SICAV and SICAF"

BANK OF ITALY (BOI)

The public consultation is aimed at gathering observations on the provisions that the Bank of Italy must adopt to comply with European regulations and which regulate the acquisition and variation of qualified shareholdings (i.e., equal to or greater than 10, 20, 30, 50% share capital or voting rights or such as to confer significant influence or control) of various issuers

Information on exposures to interest rate risk on positions not held in the trading book

#N/D

The changes concern the disclosure on exposure to interest rate risk on positions not held in the trading book

New questionnaire for the suitability checks of representatives of significant banks

BANK OF ITALY (BOI)

On December 8, 2021, the ECB published the final text of the questionnaire for the suitability checks of the representatives of significant banks (so-called fit and proper assessment, FAP) which aims to ensure that the suitability assessments are based on a adequate information assets and favor a consistent application of European Union legislation on the subject.

Now the Bank of Italy adopts this questionnaire by integrating it, after a comparison with trade associations, with the appropriate specificities related to the Italian situation, mostly requests for information to align the information collected with the provisions of Ministerial Decree no. 169 of 2020.

Regulatory technical standards specifying the conditions under which consolidation must be carried out

#N/D

These are regulatory technical standards that specify the conditions under which the consolidation must be carried out

Consultation document on the amendment of Circular 285/2013

BANK OF ITALY (BOI)

The consultation is aimed at gathering comments and observations on the proposed amendments to the provisions of the Bank of Italy on Banking Groups and the Register of Banks and Banking Groups (Part One, Title I, Chapters 2 and 4 of the Bank's Circular of Italy no. 285/2013), as well as in the matter of the prudential control process (Part One, Title III, Chapter 1 of the Circular of the Bank of Italy no. 285/2013).

The amendments derive from the need to implement the innovations introduced by Directive (EU) 2019/878 (so-called CRD V) on the subject of financial holding companies and mixed financial holding companies and on the subject of Second Pillar measures that the Supervisory Authorities may to impose.

 

Cards & Payments Services

EBA has published the final report on the amendments to be made to the Regulatory technical standards (RTS)

EBA

The changes consist of a new mandatory exemption for Strong Customer Authentication (SCA) technical standards whereby account providers are required not to apply them when customers use an AISP to access their payment account information, as long as it is met certain conditions

Notifications due by telephone operators and by subjects who issue cd instruments. "with limited usability"

BANK OF ITALY (BOI)

On April 14, 2022, a Provision of the Bank of Italy was published in the Official Gazette of the Italian Republic, concerning the notifications due by telephone operators and by subjects that issue so-called "limited expendability" instruments ", which modifies the Provision of the 11 October 2018 for the implementation of Title II of Legislative Decree no.11 of 2010.

In particular, with the aim of simplifying the obligations for the recipients of the Measure, the obligation, hitherto envisaged, to make an annual communication is eliminated. On the other hand, the obligation continues to notify the Bank of Italy of any changes with respect to the information already provided and the possibility remains for the Bank of Italy to request a new notification containing updated information if it deems it necessary.

With exclusive reference to subjects that issue so-called instruments. "" with limited usability "", it should be noted that - following the publication of the "" EBA Guidelines on the exclusion relating to limited networks pursuant to the directive on payment services in the internal market "", which contain indications and clarifications on the matter to the exclusion perimeter of payment instruments with limited usability - the national Authorities must carry out a new assessment of all the instruments already notified to them.

To this end, the Companies already registered in the appropriate appendix of the register of payment institutions must send the Bank of Italy a specific communication that illustrates again the operations put in place and its attributability to the exclusion perimeter in question. This notification may be sent in the period between 1 June and 1 September 2022 using the model used in the first communication and must not be accompanied by certifications. Unless otherwise communicated by the Bank of Italy, the companies will continue to be registered in the aforementioned register.

Circular and operational guides on registration and communications of virtual currency or digital wallet service providers

#N/D

Circular no. 41/22, approved by the Management Committee on 21 April 2022, contains the provisions concerning the methods of transmitting information to the OAM as well as the contributions and other sums due by the service providers relating to the use of virtual currency and digital wallet service providers pursuant to Article 17-bis, paragraphs 8-bis and 8-ter, of Legislative Decree No. 141 of 13 August 2010.

The data relating to the operations carried out, pursuant to art. 4 of this Circular, must be sent quarterly, in the first 15 days following the expiry of the reference quarter.

 

ESG

Italian transation of the Proposal for a Directive of the European Parliament and of the Council relating to the duty of diligence of companies for the purposes of sustainability and amending Directive (EU) 2019/1937

#N/D

Italian translation of the Proposal for a Directive relating to the duties of diligence regarding the sustainability of companies ", promoted by the European Commission

EC consultation on the ESG ratings market in the EU and on the impact of ESG factors on credit ratings

#N/D

Through this consultation, the EC aspires to better understand the functioning of the ESG ratings market as well as the impact of ESG factors on traditional ratings. More precisely, how CRAs will incorporate ESG risks into the valuation of investment instruments

Supervisory expectations on the integration of climatic and environmental risks in corporate strategies, in governance, control and risk management systems and in the disclosure to the market of supervised intermediaries

BANK OF ITALY (BOI)

The document analyzed - which is aimed at all subjects whose activities are subject to the authorization and supervision of the Bank of Italy contains expectations that aim to provide general non-binding information to the intermediary who, therefore, is free to choose the operational procedures for implementation in compliance with the principle of proportionality. Expectations are illustrated in five paragraphs relating to the following areas of intervention:

1. governance; ii. business model; iii. organizational system and operational processes; iv. risk management system; v. disclosure.

Disclosure of information relating to sustainability pursuant to the discipline contained in the Sustainable Finance Disclosures Regulation (SFDR)

#N/D

The European Commission (EC) has approved a delegated regulation that must be used by financial market operators to disclose information relating to sustainability referred to in the discipline contained in the Sustainable Finance Disclosures Regulation (SFDR).

On the basis of the new Delegated Regulation, whose provisions on disclosure of information should improve the quality and comparability of the information itself, financial market operators and financial advisors (in all investment processes and for financial products that pursue the objective of sustainable investment) will need to provide detailed information on how they address and reduce any possible negative impact that their investments may have on the environment and on society in general. The Regulation will be applied starting from 1 January 2023.

 

Insurance Services

EIOPA presented the draft amendments to the Implementing Technical Standards (ITS)

EIOPA

EIOPA defines the supervisory information and reporting requirements with regard to Solvency II: simplification of quarterly reporting for all companies, elimination of some annual reporting models for all companies and new thresholds for risk-based reporting requirements, leading to the exclusion of some companies from reporting provisions.

EIOPA has published the Annual Report on the Past Costs and Performance of Insurance and Retirement Investment Products

ESMA

This is the fourth report of the European Insurance and Occupational Pensions Authority (EIOPA) drawn up on the basis of over 760 insurance investment products (IBIPs), 200 personal pension products (PPPs) and on activity, expense and income data. of pan-European pension funds, (IORP).

The analysis shows how "insurance-based investment products" (IBIPs), i.e. insurance-based investment products, offered positive returns over the course of 2020, with unit-linked products outperforming both hybrid and profit-sharing products, despite the higher costs and higher risks.

Application clarifications concerning IVASS Regulation no. 40/2018

IVASS

The Insurance Supervisory Institute (IVASS) has provided some clarifications regarding professional requirements, conservation of documentation and digital domicile of distributors

Opinion on the disclosure of individual results of stress tests to assess the resilience of the insurance sector

EIOPA

EIOPA expresses the need to change the legal regime for advertising the results of stress tests for reasons of transparency and to make the insurance sector healthier as a whole.

According to the Authority, in fact, the participation of several subjects and the dissemination of the results in a more widespread way (financial markets, policyholders and all interested parties) represents a logical step" in the evaluation process because it would allow for the collection of more data and information. and, consequently, to strengthen the sector.

Amendments to regulatory technical standards on performance, costs and calculation method for retail investment and pre-assembly insurance products (PRIIP)

#N/D

Some changes have been introduced regarding certain elements of the presentation of performance scenarios and the content (including costs and calculation method) of retail investment products and pre-meeting insurance products (PRIIPs)

Public consultation on the draft Guidelines on customer preferences in the assessment of suitability in terms of sustainability under the Insurance Distribution Directive (IDD)

EIOPA

EIOPA has launched a public consultation, open until May 13, 2022, on the draft Guidelines on customer preferences in the assessment of suitability in terms of sustainability under the Insurance Distribution Directive (IDD).

The Directive stipulates that insurance intermediaries must offer customers products in line with their personal preferences. To this end, advice is provided on the basis of the so-called assessment of suitability which in some States is mandatory for the distribution of insurance investment products.

Revision of the Guidelines on contractual limits and of the Guidelines on the valuation of technical provisions

EIOPA

EIOPA has revised the guidelines on contractual limits and valuation of technical provisions.

The Guidelines on contractual limits are addressed to the supervisory authorities referred to in the Solvency II Directive and apply to insurance and reinsurance undertakings. They promote a consistent application of the limit of an insurance or reinsurance contract, in order to establish a limit between existing and future activities. More precisely, the guidelines provide useful indications for establishing which insurance or reinsurance obligations with respect to future premiums arise in relation to a contract, pursuant to Articles 17 and 18 of the implementing measures.

The Guidelines on the valuation of technical provisions, on the other hand, aim to improve the coherence and convergence of professional practice for all types and sizes of companies in the Member States and to identify the methods for calculating the technical provisions of companies referred to in the Solvency II Directive. .

Public consultation relating to EIOPA's periodic requests for information to the competent National Authorities (NCAs) on company and occupational pensions

EIOPA

EIOPA has launched a public consultation, with the aim of improving the reporting of pan-European pension funds, the so-called IORP, from the perspective of emerging risks and new challenges and issues observed by National Competent Authorities (NCAs) and the pension sector since its first implementation in 2018.

 

Investment Services

ESMA has published the second edition of the Data Quality Report

ESMA

In the ESMA report, it identifies the requirements to further improve the quality of data, in particular with regard to the data archive on trades and counterparties. For negotiations: a. timely and complete reporting of regulatory information to TR data users; b. accuracy and confidentiality of the data reported by the counterparties to the TRs and stored by them; c. accuracy of regulatory reports presented to users of TR data.

While for the counterparties they note: a. completeness and accuracy of the information reported (specifically, for the reporting of valuation and guarantee data); b. timely submission of reports; c. consistency of the information reported reflected in the reconciliation of the data presented by the two counterparties on the same derivative / transaction.

EBA's Risk Dashboard on the impact of the war between Ukraine and Russia on European Union banks has been published

EBA

In the Risk Dashboard, EBA noted that, in and of itself, the Russian invasion of Ukraine does not pose a threat to the stability of Eurozone banks as the banks' capital and liquidity ratios remained solid.

ESMA has published the Final Report on the possible revision of the Regulations on short selling

ESMA

ESMA has submitted a report to the European Commission in which it proposes to revise the Regulation governing short selling in the light of the experience gained during the Covid-19 pandemic crisis. The intervention points would concern: i. the short and long term issuance procedures; ii. the powers of intervention of ESMA; iii. the ban on the sale of Naked Shorts; iv. the calculation of NSPs.

CONSOB has published the "Plan of Regulation Activities" relating to the year 2022

CONSOB

The document aims to inform the public of the main issues that will be the subject of the regulatory activity of the Authority and contains: a brief introduction about the developments of the European and national regulatory framework in the previous year (2021), the evolution of the same planned for the reference year (2022) and a table with the program of regulatory interventions planned for 2022.

With reference to the European discipline, the regulatory interventions to be carried out mostly concern the sustainable finance sector.

With reference, on the other hand, to national legislation, the plan provides for the identification of measures capable of facilitating access to the capital market and reducing listing costs, as part of a broader project for the revision of domestic regulations, promoted by the Ministry of Economy and Finance, aimed at relaunching the competitiveness and attractiveness of national financial markets.

ESMA has published the complementary results of the annual transparency calculations for equity and non-equity instruments

ESMA

The European Securities and Markets Authority (ESMA), the EU securities market regulator, published on April 8 the complementary results of the annual transparency calculations for equity and non-equity instruments.

Market participants are advised to monitor the publication of transparency calculations for equity and similar instruments on a daily basis to obtain the estimated calculations for newly traded instruments and the four-week calculations applicable to newly traded instruments after the first six weeks of trading. .

The European Commission has opened a consultation on the functioning of the "Money Market Fund Regulation"

#N/D

The Consultation, which will continue until May 13, 2022, is aimed at stakeholders, investors and managers operating in the money market fund (so-called Money Market Fund "MMF"). This market has been regulated since January 2019 by the Money Market Fund Regulation which aims to preserve the integrity of the internal market

Translation into Italian of the "Guidelines on some aspects of the suitability requirements and mere execution or receipt of orders pursuant to MiFID II"

ESMA

ESMA published, on 12 April 2022,  the Italian translation of the "Guidelines on certain aspects of the requirements of appropriateness and mere execution or receipt of orders pursuant to MiFID II". The guidelines enter into force 6 months after publication.

Adjustment of liquidity thresholds and transaction percentiles used to determine the specific size of the instrument that apply to certain non-equity instruments

#N/D

The EC has deemed it appropriate to amend the aforementioned Delegated Regulation with reference to the liquidity thresholds and the percentiles of transactions used to determine the specific size of the instrument and which apply to certain non-equity instruments.

In fact, the delegated regulation provides for the gradual annual introduction over four years starting from 2019 of certain transparency thresholds. To this end, ESMA is called upon to express an assessment on the adequacy of the gradual transition from one subsequent phase to another both for the liquidity available and for market participants

Translation into Italian of the "Guidelines relating to the regulation on market abuse (MAR)"

ESMA

ESMA on 13 April 2022, published the Italian translation of the Guidelines relating to the regulation on market abuse (MAR)

The Guidelines establish a non-exhaustive indicative list of legitimate interests of issuers that could be prejudiced by the immediate disclosure of inside information to the public and of situations in which the delay in the disclosure of inside information can mislead the public

When financial innovation and sustainable finance meet: Sustainability-Linked Bonds

BANK OF ITALY (BOI)

The work constitutes a focus on Susrainability-Linked Bonds (SLB), that is, on those bonds whose financial and structural characteristics vary according to the achievement of predefined objectives relating to the issuer's sustainability performance. It follows that, depending on the result obtained - achievement or non-achievement of the set objectives - the issuer boasts benefits or suffers penalties.

 

Other Topics

EBA has published the final draft of the Regulatory Technical Standards (RTS)

EBA

The changes concern the methods of risk retention in the securitisations of non-performing and forborne exposures (NPE) and the impact of the commissions due.

In addition, the EBA has amended some existing provisions in order to further clarify some risk profiles, including the positions of the securitization promoters, the original lenders", the transferees and the manager.

The European Supervisory Authorities have published the joint report on the 2022 risk assessment

ESMA

According to the three European Supervisory Authorities, financial institutions should prepare themselves for further potential negative implications deriving from geopolitical tensions and share European and global stances against Russia and Belarus in terms of sanctions.

Specifically, ESAs hypothesizes a possible deterioration in the quality of assets in the financial sector, for which it urges constant monitoring of risk premiums and returns for both institutional and retail investors.

 

231/2001

The responsibility of the members of the BoD for the offenses resolved by the Board in the system of proxies

COURT OF CASSATION

The Court of Cassation issued a sentence on the basis of which:

 "Unless the act falls within the powers delegated to the executive committee or one of the directors who are part of it, all members of the board of directors are liable - except for the exemption mechanism provided for in the third paragraph of art. 2392 cod. civ. which provides for the disclosure and annotation of the conflicting opinion by the dissenting director as well as free from fault - of the offenses approved by the board even if in fact not decided or committed by all its members ".

Liability of entities, negligent crimes and minimal savings

COURT OF CASSATION

the Court of Cassation affirmed the principle according to which it must be considered irrelevant, for the purposes of the liability of the legal person, "the circumstance that the savings achieved due to the failure to adopt the accident prevention measures were minimal compared to the huge expenses that the company faces for the maintenance and safety ».

Liability of directors without delegated powers. Court of Cassation - II Section Civil, February 15, 2022, n. 4923

COURT OF CASSATION

With the aforementioned ordinance, the Court of Cassation confirmed a jurisprudential address (Cass. N. 19556/2020; Cass. N. 16517/2020; Cass. N. 2620/2021) according to which even non-executive directors, i.e. they are burdened by special charges.