The Ministry of Economy and Finance announces transitional measures

[Newsflash n. 59]

On 24 January 2019, the Ministry of Economy and Finance published a press release stating that it has drafted – in close consultation with the regulatory authorities and after discussions with trade associations – necessary measures to ensure full continuity of regulated activities in case of no-deal Brexit.

The announced measures (which will most likely be adopted in the form of a law decree by the Italian Government) have not been made public, however the Ministry has basically anticipated:

  • the provision of a transitional period during which “banking, financial and insurance intermediaries will be able to continue to operate according to existing laws and regulations”.
  • the introduction of obligations and procedural steps that such intermediaries will be required “to comply with – based on applicable sector legislation – in order to continue to operate beyond the defined transitional period.”

Similar provisions will govern trading venues and their access by intermediaries, as well as the investments of pension funds in UCITS and AIFs established under the laws of the United Kingdom.

The decree will be issued on a date that depends on the forthcoming developments in the UK and in any case in a timely manner to allow the orderly continuation of business.

While the message is reassuring in terms of a transitional period during which the British intermediaries will be able to perform their investment activities in Italy and Italian firms in the United Kingdom “as usual”, not much can be gathered as to duration of such period and the requirements to perform regulated activities when it expires.

We will monitor future developments on this matter and keep you informed on any further detail.


Contacts:

Vito Vittore
Partner

Elena Pagnoni
Partner

Roberta Talone
Associate