The instructions clarify the requirements applicable to banking and financial intermediaries under the Brexit Law Decree.
On 28 March 2019, the Italian central bank (Bank of Italy) published two notices detailing the requirements for Italian banks and financial intermediaries operating in the UK, and for UK banks and financial intermediaries operating in Italy, respectively, further to Brexit Law Decree No. 22 of 25 March 2019. The decree lays down a temporary regime for regulated firms in a no-deal Brexit scenario. (Additional background information is available in this Latham.London post.)
- The first notice calls on Italian banks and financial intermediaries operating in the UK to notify the Italian central bank at least three days before the no-deal withdrawal date if they wish to benefit from transitional provisions under the Brexit Law Decree. The notice applies to smaller Italian banks under Regulation (EU) 1024/2013, payment and e-money institutions, SGRs, SICAVs, SICAFs, managers of EuVECA, EuSEF, and ELTIF funds, and financial intermediaries under Article 106 of the Italian Banking Act.
- The second notice instructs UK banks and financial intermediaries operating in Italy to comply with the provisions of the Brexit Law Decree.
Latham & Watkins will continue to monitor and report on developments concerning Italy and Brexit.