CONSOB secondary level measures implementing MiFID II

As follow up to the consultation of July 2017, today CONSOB published the outcome of the consultation and Resolution No. 20307 ("New CONSOB Regulation on Intermediaries"), which sets out the secondary level measures for the transposition in Italy of Directive No. 2014/65/EU ("MiFID II") and Regulation No. 2014/600/EU ("MiFIR") as well as the relevant delegated EU provisions.

The New CONSOB Regulation on Intermediaries repeals Resolution No. 16190/2007 (i.e. CONSOB Regulation on Intermediaries) and Resolution No. 17130/2010 (i.e. CONSOB Regulation on financial advisors). In addition, certain provisions of the Regulation on the organisation and procedures of intermediaries which provide investment services or collective investment management services (adopted jointly by the Bank of Italy and CONSOB on 29 October 2007) will no longer be applicable from the date of the entry into force of the New CONSOB Regulation on Intermediaries.

In the context of the illustrative report, CONSOB expressed its general intention to rely on the interpretative guidance provided by the EU authorities and envisaged the possibility to provide its own guidance in the form of Q&A, also considering the specific features of the domestic market. Furthermore, CONSOB announced the intention to initiate a review from a MiFID II perspective of the guidelines drafted together with associations of specific categories of financial institutions (such as the Assogestioni guidelines on incentives validated by CONSOB).

Below are highlights of some specific topics dealt with in the New CONSOB Regulation on Intermediaries:

  • Written form ad substantiam required for agreements entered into with professional investors for providing investment services (including investment advice) with content varying on a proportional basis depending on the service rendered;
  • Mirroring of the EU provisions on inducements, but CONSOB did not exercise the power to extend the category of minor non-monetary benefits;
  • Extension of the duty to record telephone conversations and electronic communications with clients to investment advice and portfolio management services (in addition to dealing on own account, reception, transmission and execution of client orders services);
  • Application of the product governance duties to all the entities carrying out investment services, without any waiver relating to the type of investment service rendered or to specific ways of performance (for example, on initiative of the client);
  • Enhancement of the professional expertise requirements of staff in direct contact with the clients (both retail and professional) in the provision of investment advice or of information on financial instruments, investment or ancillary services;
  • Reorganisation of the rules applicable to financial advisors authorised to carry out door-to-door selling, financial advisors and financial advice companies. In this context, a specific transitional regime is also set out for the activity of the Organismo di vigilanza e tenuta dell'albo unico dei Consulenti Finanziari and the functioning of the single Register of Financial Advisors;
  • Application to asset managers, on a proportional basis, of the MiFID II rules in the context of the marketing of UCIs and AIFs in Italy.

The New CONSOB Regulation on Intermediaries will be published in the Italian Official Gazette and will enter into force the day following its publication.

Click here to download the New CONSOB Regulation on Intermediaries and the outcome of the consultation.

Download PDF Back To Listing
Loading data