On 26 January 2017, Covip (the Italian Pension Funds Authority) published its response to the question (posed by Assofondipensioni, an Italian non-profit industry association) on the impact of the bail-in rules to the assets in which supplementary pension funds invests their funds.
Covip concludes that:
- Assets entrusted to the management of a third party manager are not subject to bail-in measures in case of resolution of the manager, due to the application to supplementary pension funds of a specific provision of law, according to which the assets managed by a third party entity constitute a separate asset from the manager and as such should be deemed bankruptcy remote;
- Cash assets deposited with a custodian bank are instead subject to bail-in measures affecting the custodian bank. Indeed, Covip clarifies that even though the UCITS rules governing the relationship with depositor broadly applies to pension funds, the specific provision on the segregation of the assets of the UCITS is not expressly listed so that it will not apply in this instance;
- Bank deposits are subject to bail-in according to the general bail-in regime, i.e. only to the extent that other riskier assets of the bank are not sufficient.
The full version of the Document can be found here, in Italian language only.
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