Consob, the national commission for companies and the stock exchange, has adopted a recommendation that will make the warning for the investor "clearer and more effective".
A series of simple rules that make up a sort of synthetic handbook that serves to summarize the risks associated with the company and the proposed financial instruments.
The recommendation, reads a communiqué from the commission, draws the attention of operators to the importance of drafting the warnings for the investor according to criteria of brevity and conciseness, simplicity of exposition, comprehensibility and immediacy.
Simply put, the text of the Warnings must be published "clearly, on the page immediately following the cover of the prospectus, in easily legible characters, discursive style, avoiding acronyms and tables as much as possible". A call to financial companies to provide information on the products they sell with "brevity and conciseness, display simplicity, comprehensibility and immediacy".
In particular, the recommendation refers to some of the contents which in practice have been the subject of reference in the warnings: the objective of the operation; any uncertainties about the company's continuity, linked to the economic, equity, financial and management situation of the issuer; the characteristics of the proposed financial product, representing any complexity and illiquidity risks, which may affect the recovery of the investment.
Lastly, Consob calls on operators to write warnings legibly, avoiding acronyms and tables.
