Italy: Regulatory Financial Information Letter – Part 3 – Payment and Banking Services – Bank of Italy Supervision

0

In short

Sound Remuneration Policies: Amendments to Bank of Italy Circular No. 285 (Circolare n. 285 del 17 December 2013 “Disposizioni di Vigilanza per le banche” – 37° aggiornamento – Politiche e prassi di remunerazione e incentivazione nelle banche e nei gruppi bancari)

On November 24, 2021, the Bank of Italy issued an order regarding amendments to Bank of Italy Circular no.Circular No. 285“). The amendments to Bank of Italy Circular No. 285 aim to align Italian regulations with the latest EU legislative developments on sound remuneration policies and practices, in particular Directive (EU) 2019/878 of 20 May 2019 amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and fund retention measures (Capital Requirements Directive V) and EBA (European Banking Authority) guidance on sound remuneration policies under Directive 2013/36/EU.

The amendments to Circular No. 285 will enter into force on the fifteenth day of their publication in the Official Gazette of the Italian Republic (Gazzetta Ufficiale) and will be applicable to banks and parent companies of banking groups.

Securitisation: communication from the Bank of Italy on risk profiles and prudential guidelines (Servicers in operation of cartolarizzazione. Profili di rischiosità e linee di vigilance)

On November 11, 2021, the Bank of Italy published a communication addressed to managers of securitization operations, highlighting the main risks underlying the credit securitization industry and making recommendations on the measures to be implemented when performing management activities. The Bank of Italy has warned market operators that their organization is often inadequate in view of ever-increasing operational complexities, exposing servicers to operational and reputational risks. In particular, the authority has identified several shortcomings in the control system and in the operational risk management of repairers, as well as shortcomings in the relations with specialized repairers, both during the initial assessment of the subjects and the continuous follow-up recovery performance.

In addition, the Bank of Italy has indicated the need to strengthen the current flow of information on securitization operations carried out by the management agents and, to this end, has added new models to the existing information that must be submitted. periodically to the Bank of Italy by the managing agents. One model refers to securitization transactions backed by government guarantees, while the other model refers to other securitization transactions. The models will be submitted to the Bank of Italy through the INFOSTAT platform every six months, no later than the twentieth day after the reference date.

The first reference date for submission of models is 31 December 2021, with the deadline for submission being 20 January 2022.

IFRS: new provisions on the financial statements of non-banking intermediaries (The balance sheet degli intermediari IFRS diversi dagli intermediari bancari)

On November 2, 2021, the Bank of Italy published the new version of the Provisions on the financial statements of IFRS intermediaries other than banking intermediaries (the “IFRS provisions“). The IFRS Provisions are applicable to the financial statements for the financial year ending on 31 December 2021 or at a later date, and replace the previous Provisions on the financial statements of IFRS intermediaries other than banking intermediaries of 30 November 2018.

PSD2: Bank of Italy adheres to EBA guidelines on major incident reporting (Communication of October 29, 2021. Attuazione per i prestatori di servizi di pagamento degli Orientamenti aggiornati dell’EBA in materia di segnalazione dei gravi incidenti ai sensi della direttiva PSD2 (EBA/GL/2021/03)

On 29 October 2021, the Bank of Italy published a notice announcing the Authority’s full membership of the EBA Revised Guidelines on Major Incident Reporting under PSD2 (EBA/GL/2021/03) (the “EBA guidelines“). The EBA Guidelines provide criteria to be used for the classification of major operational or security incidents, as well as the content, form and procedures for reporting such incidents to national supervisory authorities. repeal and replace the EBA Guidelines on major incident reporting under Directive (EU) 2015/2366 (PSD2) (EBA/GL/2017/10).

The EBA guidelines will apply from 1 January 2022.

Qualifying holdings: Bank of Italy provisions on information and documents to be provided (Disposizioni di vigilance della Banca d’Italia in materia di Informazioni e documenti da trasmettere alla Banca d’Italia nell’istanza di autorizzazione all’acquisto di una partecipazione qualificata)

On October 28, 2021, the Bank of Italy published the Prudential provisions relating to the information and documents to be submitted to the Bank of Italy with the request for authorization to purchase a qualifying holding (the “Bank of Italy provisions“). The provisions of the Bank of Italy are applicable to requests for authorization to purchase a qualifying holding in banks, financial holdings, mixed financial holdings, financial intermediaries, payment institutions, institutions electronic money companies, asset management companies, companies with variable capital investment companies and investment companies with fixed capital The provisions of the Bank of Italy transpose the common guidelines of the European Supervisory Authorities for the assessment prudential of acquisitions of qualifying holdings.

The provisions of the Bank of Italy will enter into force on April 1, 2022 and will be applicable to applications submitted from April 1, 2022. Therefore, as of April 1, 2022, the following provisions relating to the information to be provided to the Bank of Italy ‘Italy Italy by the shareholders will be repealed:

  • Title II, Chapter 1, of Bank of Italy Circular No. 229 of 21 April 1999 and Bank of Italy Ordinance published in Surveillance Bulletin No. 8/2002, Part One, Chapter I;

  • Title II, Chapter 2, Annex A and Annex C, of ​​Bank of Italy Circular No. 288 of 2 April 2015;

  • Attachments IV.1.2, IV.1.3, IV.1.4, IV.1.5, IV.1.6 and IV.1.7 to the Bank of Italy Regulations on collective asset management.

The aforementioned provisions will still apply to applications filed before April 1, 2022.

Prudential reporting: amendments to several Bank of Italy circulars

On October 27, the Bank of Italy issued an order amending the Bank of Italy circular no. 154 of 22 November 1991 on “The prudential reporting of credit institutions and financial institutions. Templates for data collection and instructions for the submission of information flows”.

On October 26, the Bank of Italy issued orders regarding amendments to two Bank of Italy circulars:

  • Circular of the Bank of Italy no. 272 ​​of July 30, 2008 on the “matrix of accounts”, implementing Regulation (EU) 2021/379 of the European Central Bank of 22 January 2021, on balance sheet items of credit institutions and the monetary financial institutions sector (ECB/2021 /2) and Regulation (EU) 2020/2011 of the European Central Bank of 1 December 2020 (ECB/2020/59), which amends Regulation (EU) No 1409/2013 on payment statistics (ECB/2013 /43) (the “Payment Statistics Regulations“);
  • Circular of the Bank of Italy no. 217 of August 5, 1996 on the “Manual for the execution of supervisory reports for financial intermediaries, payment institutions and electronic money institutions”, implementing the Regulation on payment statistics and aligning the provisions of Circular No 217 of the Bank of Italy on the service with those of the Circular of the Bank of Italy N° 272.

Central Risk Office (Centrale dei rischi): update of Bank of Italy circular no. 139 of 11 February 1991 (Circolare n. 139 from February 11, 1991)

On October 14, 2021, the Bank of Italy issued orders regarding amendments to the Bank of Italy Circular No. 139 of 11 February 1991 on the Central Risk Office (Centrale dei rischi). These changes relate in particular to (i) a two-year ban on requesting data from the Credit Register in the event of false declarations (the ban becomes final if the behavior is repeated), (ii) participation in the Credit Register Risks of banks and financial intermediaries subject to judicial liquidation (liquidazione coatta amministrativa) or voluntary liquidation, if participation is necessary for the information needs of the credit bureau or for the smooth running of liquidation proceedings, and (iii) the inclusion of additional listings.

The amendments to Circular No. 139 of the Bank of Italy entered into force on November 2, 2021.

The content is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This may qualify as “lawyer advertising” requiring notice in some jurisdictions. Prior results do not guarantee similar results. For more information, please visit: www.bakermckenzie.com/en/disclaimers.

Share.

About Author

Comments are closed.