Bank of Italy e Consob have signed a Memorandum of Understanding to strengthen the coordination and swap of information on how to manage interventions in the Italian financial market. This agreement is based on the competence framework defined by the Unique Text of Finance (Tuf) and aims to ensure more effective control over financial instruments, structured deposits and financial practices operating in the country.
Exchange of information and powers of intervention: the protocol between Bankitalia and Consob
The protocol establishes that Bankitalia and Consob will regularly exchange information on financial instruments in circulation in Italy, including those resulting from periodic analyses or activities at European level with authorities such as the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA). Furthermore, a clear process for issuing opinions necessary when one of the two authorities decides to intervene, as well as the mutual recognition of the two institutions as points of reference for communications with these European authorities.
The power of intervention, provided for by the European regulation on markets in financial instruments (MiFIR), allows authorities to to forbid o limit la marketing , sale of complex financial instruments, such as structured deposits, whose returns depend on external factors such as indices, currencies or exchange rates. In addition, the financial practices related to these operations, such as distribution methods and incentive mechanisms.
This power of intervention is divided between Via Nazionale and Consob: the Bank of Italy focuses on the stability of the financial system, while Consob protects investors and guarantees the integrity of the markets. Both authorities have the power to adopt temporary or permanent measures towards banks, investment firms and market operators, to ensure the proper functioning of the financial system.
