[Newsflash n. 50]

Further to the implementation in Italy of the Insurance Distribution Directive (2016/97/EU) (“IDD”) by legislative decree of 21 May 2018 published in the Italian Official Journal on 16 June 2018, which amended the Italian Financial Act (TUF) and the Code of Private Insurance Companies (CAP), CONSOB has launched a public Consultation to amend its Issuers’ Regulation in order to set out a harmonized disclosure regime for IBIP, ensure consistency with the PRIIPs KID and avoid discrepancies in the information provided to investors.

As a matter of fact, the IDD implementation in Italy has lead, inter alia, (i) to the repealing of the definition of “financial products issued by insurance companies” in the TUF,as it was clashing with that of insurance based investment products (“IBIP”) introduced pursuant to PRIIPs regime as well as redundant (as it refers to products already included in the new European concept of IBIP); and (ii) to the introduction of a new disclosure document to be provided in conjunction with the PRIIPs KID (the so called Pre-contractual Information Document (“DIP”).

In light of such changes, CONSOB has now submitted to the public consultation the following amendments to the Issuers’ Regulation:

1. the repealing of the obligation to publish a prospectus for products of Ramo III (unit and index-linked policies) and Ramo V (capitalization policies), that insurance companies are currently required to produce in accordance with specific templates annexed to the Issuers’ Regulation. In the Regulator’s view, such amendment is in line with Solvency II and sufficient disclosure is already provided through the KID and the newly introduced DIP;
2. the repealing of the provisions concerning public offering of financial products issued by insurance companies (i.e. the whole Chapter IV of the said Regulation), with the consequent amendment of article 34-ter in order to set out the inapplicability of the public offering regime to IBIP.

The amendments proposed by CONSOB show the open approach followed by the regulator towards full harmonization with European law and the departure from a purely domestic regime, which neither is grounded in corresponding EU provisions nor has equals in other Member States.

Responses to the Consultation may be submitted no later than 27 August 2018.

Please do not hesitate to contact us should you need any clarification on this topic or assistance in submitting your response to the Consultation.

Contacts:

Vito Vittore
Partner

Elena Pagnoni
Partner

Chiara Di Torrice
Associate