ITALY: Instructions to British Investment Firms Providing Investment Services and Activities in Italy

Friday July 24 2020

On 23^rd July 2020, the Commissione Nazionale per le Società e la Borsa (CONSOB) published a document summarizing the instructions to British investment firms providing investment services and activities in Italy.

Following Warning Notice 3/20 of March 26, 2020, Consob reminds that, at the end of the “transition period” (on December 31, 2020), provided for in the agreement defining the procedures for the withdrawal of the United Kingdom from the European Union, British investment firms providing investment services and activities in Italy will be subject to the rules set out in Article 28 of the Consolidated Law on Finance (TUF) and in Articles 25 – 31 of Consob Regulation no. 20307/2018.

In the light of the aforementioned rules, Consob recommends that British investment firms wishing to continue operating in Italy, either as third country firms or by transferring their business to an Italian investment firm (SIM) established for this purpose, to submit the application for authorization promptly, also taking into consideration that the duration of authorization procedures can be subject to suspension and interruption.

British investment firms that intend to continue operating in Italy by transferring their activities to an EU investment firm are invited to complete such transfer by the end of the transition period and, where necessary, the procedures for passport notification into Italy.

UK investment firms that intend, or are required to cease their operation by the end of the transition period shall terminate their relationships with clients in ways that prevent them from being prejudiced and in compliance with the notice deadlines for the contract termination.

These firms report the termination to Consob specifying whether the end of operations has already been notified to the competent UK authorities.

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