CONSOB and Bank of Italy ease compliance obligations during COVID-19.

By Antonio Coletti, Marco Bonasso, and Isabella Porchia

The Italian Securities Commission (CONSOB) and the Bank of Italy have adopted a series of measures to grant intermediaries and online portal managers an extended deadline to comply with their disclosure obligations, and facilitated compliance activities by banks and supervised non-bank intermediaries, due to restrictions imposed by government measures to face the COVID-19 emergency.

Under resolutions no. 21314 and 21315 of March 25, 2020, CONSOB granted a 60-day extension for the terms relating to:

  • Intermediaries sending reports on how to perform services and reports on the organizational structure of SGR (asset management company), SICAF (fixed capital investment company), and SICAV (variable capital investment company)
  • Online portal managers sending data and news and transmitting documents to CONSOB, according to the regulation on raising funds through online portals

CONSOB, taking into account the implications that COVID-19 may have on online portal managers’ operations, also noted the need for managers to take measures to ensure the operational continuity of activities carried out on portals and to promptly update the information relating to bidders on significant events likely to influence investment decisions.

On March 20, 2020, the Bank of Italy granted extensions (applicable also to significant banks for those matters within the scope of Bank of Italy’s jurisdiction) in relation to certain reporting obligations including:

  • A 60-day extension for obligations concerning: (i) ICAAP/ILAAP for banks and securities investment firms (SIMs), and ICAAP for non-bank financial intermediaries pursuant to Article 106 of the Consolidated Law on Banking (TUB); (ii) recovery plans and reports on outsourcing for banks and financial intermediaries; (iii) reports on organizational structures for SIM, SGR, SICAF, SICAV, payment institutions, and electronic money institutions
  • A 150-day extension for submission of the first Report on Operational Risks and Safety for banks
  • An extension until June 30, 2020 of the deadline for transmitting the update to the non-performing loan reduction plan by smaller banks

The Bank of Italy also clarified that smaller banks and non-bank intermediaries are allowed to operate temporarily below the level of the Pillar 2 Guidance (P2G), the capital conservation buffer (CCB), and the liquidity coverage ratio (LCR). In these cases, the Bank of Italy will assess the realignment plans that intermediaries will submit, bearing in mind the exceptional circumstances that have caused the capital and liquidity buffers to fall below the required levels.