Allocation of supervisory duties for insurance and financial products
Decree-Law 74/2015, published in the Official Gazette on June 15 2015, has amended the Insurance Code to implement the EU Solvency II Directive (2009/138/EC) regarding the take-up and pursuit of insurance and reinsurance.
The directive introduces a prudential supervisory regime that establishes a regulatory framework which aims to allow maximum protection to users of insurance services and a system that offers supervisory authorities improved tools for assessing solvency.
IVASS, the Italian insurance regulator, will update its regulations with a view to implementing the new rules.
Allocation of supervisory duties for insurance and financial products
Among the amendments introduced by Decree-Law 74/2015 is the allocation of supervisory duties for insurance and financial products between CONSOB (the national financial supervisory authority) and IVASS.
The revised Article 3 of the Insurance Code provides that:
"The main aim of the supervision is the adequate protection of the insured and the parties entitled to insurance services. For such purposes, IVASS pursues the health and prudent management of insurance and reinsurance companies as well as, together with CONSOB, each to the extent of its respective scope of authority, transparency and fairness towards customers. Another aim of the supervision, dependent on the latter, is the stability of the system and the financial markets."
A new Article 187-bis has also been introduced, which provides that:
"In fulfilling the duties mentioned in paragraph 1, and if so requested by the situation, even following the prudential control process under article 47-quinquies, IVASS may adopt preventive or corrective measures towards specific insurance or reinsurance companies, including specific measures concerning: a) business restrictions, including the power to prohibit the further sale of insurance products… 3-ter. The exercise of the supervisory powers under paragraph 3-bis, letter a), is assigned to CONSOB, to the extent falling within the respective scope of authority."
For further information on this topic please contact David Maria Marino at DLA Piper Italy by telephone (+39 02 80 61 81) or email ([email protected]). The DLA Piper website can be accessed at www.dlapiper.com.
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