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11 June 2004
Among other things, the legislative decree introduces new means of raising funds from subjects other than the public, and new provisions governing banking activities performed by companies other than banks.
The Banking Law provides that fundraising activity is reserved to banks or other specific financial institutions where it involves the collection of deposits from the public. In this respect, specific authorization must be obtained from the Bank of Italy.
Before the new legislative decree entered into force, Section 11 of the Banking Law stated that fundraising activity does not involve the public where funds are collected from:
According to Article 2359 of the Civil Code, a 'subsidiary' is a company in which a parent company holds the majority of voting rights at the ordinary shareholders meeting or has a dominant influence over the subsidiary. A 'related company' is a company which has a significant influence over another; this is presumed where the company holds one-fifth of the voting rights at the ordinary shareholders meeting (one-tenth for listed companies).
The new legislative decree has amended Section 11 of the Banking Law. It replaces the references to shareholders, employees and companies within the same group with a general provision referring to "specific categories identified for company or work reasons".
As a result of these amendments, the legislative decree has expanded the legal forms of raising funds from entities other than the public.
The legislative decree has additionally imposed new restrictions on fundraising carried out by intermediaries which are authorized to conduct banking activities in relation to the public, provided that they have been duly entered in a special register held by the Italian Foreign Exchange Bureau.
The legislative decree further provides that the Italian Inter-ministerial Committee for Credit and Savings has nine months, as from February 14 2004, to establish the conditions and criteria for performing these activities.
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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