Updates on Italy’s implementation of EU rules on cross-border distribution of UCIs

On 15 July 2021, the Italian Council of Ministers permitted, in preliminary examination, a legislative decree introducing rules to adapt nationwide laws to EU rules – Directive (EU) 2019/1160 (CBFD Directive) and Regulation (EU) 2019/1156 (CBFD Regulation) – on cross-border distribution of collective funding undertakings (please see our earlier newsflash right here).

As comply with up, Legislative Decree no. 191 of 5 November 2021 amended Legislative Decree no. 58 of 24 February 1998 (the Consolidated Financial Act) implementing, at major laws degree, the CBFD Directive and adapting home rules to the CBFD Regulation.

More intimately, amongst different issues, Consob has been supplied with the delegated energy to manage:

• the native services for buyers that have to be made obtainable in Italy;

• the process for the termination of advertising of UCITS and AIFs;

• ‘pre-marketing’ actions.

In order to train the talked about regulatory powers, Consob revealed for session its amendments to Consob’s Regulation on Issuers relating to, amongst different issues:

• the duties of the native services for retail UCITS and a few classes of AIFs, which can be carried out by the identical UCITS/AIF or by third events, appearing as contact level for any communication with Consob and the Bank of Italy, in addition to the data to be supplied to the buyers on this respect;

• the notification to Consob both from the Italian fund supervisor or the international regulatory authority, relying on the kind of fund, for terminating the advertising of models/shares in UCITS and AIFs, the data that have to be made publicly obtainable by the fund supervisor to the buyers, the provide to purchase again fund (apart from close-ended AIFs or ELTIFs) models/shares from the buyers within the nation the place advertising is terminated, in addition to the obligation for the fund supervisor to terminate the agreements with third events from the date by which Consob receives the notification as a way to keep away from additional advertising of the funds;

• the rules for pre-marketing of reserved AIFs and the relevant process, the instances by which the subscription by skilled buyers of models/shares of AIFs is taken into account the consequence of advertising and the record of entities entitled to hold out pre-marketing actions;

• the carve out of UCIs from the rules on commercial set out beneath the Consob Regulation on Issuers, as they’re straight topic to the ESMA Guidelines on advertising communications beneath the Regulation on cross-border distribution of funds (ESMA34-45-1244).

Also, Consob took the event to switch into the Regulation of Issuers the provisions of the SFDR and the Taxonomy Regulation associated to pre-contractual data to be inserted within the providing paperwork of funding funds.

Next steps

As Consob’s session ended on 11 March 2022, the ultimate model of the Regulation on Issuers is predicted to be issued shortly. Click right here to obtain the textual content of the Regulation on Issuers submitted to session (obtainable in Italian solely).