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12 March 2004
The bill grants new supervisory powers to authorities such as the Bank of Italy, the Interministerial Committee for Credit and Savings (CICR) and the Securities and Exchange Commission in relation to the management of banks and financial intermediaries, stability, efficiency and the competitiveness of the banking system.
The bill further provides for the creation of a new Savings Protection Authority which will be empowered to supervise banks and insurance companies and to ensure the transparency of financial products, including banking and corporate bonds. It will also have increased powers in relation to investigations and penalties.
The bill also transfers responsibility for supervising competition on the banking market to the National Antitrust Authority. Where mergers and acquisitions involve banks, the Bank of Italy and the National Antitrust Authority must give their joint approval to the deal.
A committee will be established to facilitate coordination between the Bank of Italy, the Savings Protection Authority and the National Antitrust Authority; its members will comprise the relevant directors of these authorities.
The functions of the CICR will be strengthened. In addition, while under the current banking system the CICR acts only upon the instruction of the Bank of Italy, the bill will empower the CICR to issue directly instructions on supervisory activities.
Moreover, the bill introduces an indemnity system in favour of retail investors, who will be compensated for damages caused by issuers which have violated the Consolidated Law on Financial Intermediation (Decree-Law 58/1998).
The bill is subject to parliamentary approval.
For further information on this topic please contact Livio Esposizione or Elisabetta Trabucco at Studio Legale Tonucci by telephone (+39 06 36 22 71) or by fax (+39 06 323 5161) or by email (firstname.lastname@example.org).
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