From individual savings plans to institutional savings plans. The acronym remains the same, namely Pir, the operating mechanism is very similar to that of the instrument introduced by the 2017 Budget Law, but the clientele changes: from small savers to social security funds and pension funds.
The novelty emerged in the context of the first hearings on the 3,4 billion euro maneuver currently under consideration by Parliament. Talking about it was Louis Casero, Deputy Minister of the Economy who underlined how the Government deems it useful "to envisage the possibility of introducing rules that establish new financial instruments for private pension funds and pension funds, according to the mechanism of the aforementioned Pir, which could also be renamed as Institutional Savings Plans”.
To push the Government to extend the audience of individual savings plans also to pension funds and pension funds It might have been the great success that the Pir are having among retail customers in recent months. A real rain of proposals has flooded the market, meeting the favor of small savers and allowing the savings of Italians to be channeled to small and medium-sized Italian enterprises.
An essential condition for investing in the PIRs is that at least 70% of the total value of the Plans is invested in financial instruments issued or entered into by Italian or foreign companies with permanent business in Italy. Furthermore, at least 21% of the total value of the fund must concern products not issued by companies listed on the Ftse Mib.
Thus also widening the audience pension savings could be channeled towards SMEs increasingly becoming an alternative source of financing to banks.
According to rumors, the institutional savings plans would replicate the advantages already provided by the PIRs for investors, especially from a tax point of view. Even for banks and funds that may decide to focus on this type of investment, there could therefore be an exemption from taxation of the income generated by investments held for at least 5 years.
As reported by Milano Finanza, the question would already be on the table of the Government. The first comparisons will begin shortly, which will also involve coffers and funds, on the technical aspects and on the range of application of the novelty. What is certain, based on the trend that has characterized these first few months, is that the success of the Pir seems destined to continue.
