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16 September 2014
On June 24 2014 Decree 91/2014 (the so-called 'Competitiveness Decree') was published in the Official Gazette. The decree – which aims to foster the growth of Italian companies through facilitating access to new sources of financing – introduces a new category of asset to cover the technical reserves of life and non-life insurers, which can now also include facilities disbursed to entities other than individuals and micro-companies. The measure will become effective only once IVASS (the Italian insurance supervisory authority) has issued specific rules outlining the conditions and limits for recourse to this type of investment.
On September 3 2014 the public consultation regarding the draft measure containing the rules on the type of investment concerned closed. This measure will amend IVASS Regulation 36/2011 in the matter of technical reserves.
The following conditions will apply:
The facilities should be disbursed to companies through the signing of debt securities (eg, corporate bonds, either maxi or mini) or credit instruments (eg, listed shares), as has been demonstrated by the minister of economic development.
As the Italian Association of Insurance Companies has pointed out, the condition that identification of the borrower rest with the bank or financial intermediary might discourage insurers which intend to use their own internal structures to identify borrowers. Most importantly, this condition is not contemplated by any of the jurisdictions which allow insurers to disburse loans directly.
The proposed amendments to IVASS Regulation 36 are primarily designed to expand the opportunity for insurers to invest and diversify their investments, with a view to facilitating access to financing.
In addition to the new rules governing financing activity by insurers, the most noteworthy new provisions are as follows:
For further information on this topic please contact David Maria Marino, Francesco Cerasi or Mauro Carretta at DLA Piper Italy by telephone (+39 02 80 61 81), fax (+39 02 80 61 82 01) or email (firstname.lastname@example.org, email@example.com or firstname.lastname@example.org). The DLA Piper website can be accessed at www.dlapiper.com.
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