CONSOB notice 8/2019 details the requirements under the Italian investor compensation scheme applicable to UK banks and investment firms operating in Italy.
On 29 March 2019, the Italian Securities Commission (CONSOB) issued a notice detailing the terms and requirements applicable to UK banks and investment firms operating in Italy in connection with the Italian compensation scheme (Fondo Nazionale di Garanzia or the Italian ICS) pursuant to Article 8 of the Brexit Law Decree No. 22 of 25 March 2019.
According to the Decree, after the date of withdrawal, Italian branches of UK banks and investment firms and UK banks and investment firms operating in Italy on a cross-border basis will mandatorily adhere to the Italian ICS. By way of partial exception, firms operating on a cross-border basis may submit to the Italian ICS a statement from the UK ICS certifying that such UK ICS will continue to protect their clients.
CONSOB’s notice clarified that UK banks and investment firms (including those that intend to or are required to terminate operations under the Decree) should:
- Contact the Italian ICS within 30 days of the date of withdrawal to carry out the required operational and administrative formalities, including the obligation to pay contributions
- Inform their clients about the protections available to them under the Italian ICS as soon as possible, and in any case within 40 days following the entry into force of Brexit Decree (effective from March 26, 2019); these disclosure notices should be clear and in plain language and should contain all the contact details for further information
- Inform CONSOB’s Financial Intermediaries Division of the disclosure notices sent to their clients within 55 days of the entry into force of the Brexit Decree
Latham & Watkins will continue to monitor and report on developments concerning Italy and Brexit.