The Bank of Italy has called on UK financial institutions to inform their Italian clients of Brexit consequences promptly.
On February 19, 2019, the Bank of Italy issued a notice to UK financial institutions operating in Italy requesting they promptly inform their Italian clients of Brexit consequences. The notice applies to banks, payment institutions, and e-money institutions established in the United Kingdom that currently provide services in Italy via branches, under the freedom to provide services, or by means of a network of agents.
The Bank of Italy called on these institutions to send detailed personalized information to their Italian customers about the impact of Brexit, including specifically on:
- The effects of Brexit on existing contracts, as a consequence of any envisaged termination of activities in Italy
- The consequences of any potential corporate reorganizations in connection with Brexit, in particular with regard to any planned block transfers or sale of businesses
- The recourse to any available alternative dispute resolution mechanisms
- The effects of Brexit on deposit guarantees, if appropriate
The notice further called on UK financial institutions to publish the same information that they send to the customers on their websites in both Italian and English. The communications must be written in clear and plain language, and must include the contact details for customers requiring clarification and assistance.
If UK financial institutions expect substantial disruptions on contract continuity and/or on customers’ rights are expected, they should promptly inform the Bank of Italy by emailing TCA@pec.bancaditalia.it and Brexit_TCA@bancaditalia.it.