BANKING AND FINANCE | Memorandum of Understanding on the Identification and supplementary supervision of financial conglomerates signed

On 10 February 2025, the Italian Securities and Exchange Commission (“CONSOB”), the Bank of Italy and the Italian Institute for the Supervision of Insurance  (“IVASS”) have signed a Memorandum of Understanding (“MoU”) on the identification and supplementary supervision of financial conglomerates, i.e. corporate groups that are engaged in both the insurance and banking or investment services sectors, as defined under Articles 1 and 3 of Legislative Decree No. 142 of 30 May 2005. The MoU, which replaces the Coordination Agreement dated 31 March 2006, defines the modalities of cooperation and information exchange between the Authorities, for the exercise of supplementary supervision of financial conglomerates; in its configuration as a ‘framework agreement’, it also provides for the possibility for the Authorities to define further specific coordination arrangements for individual conglomerates.  Given the assignment to the recently established Single Supervisory Mechanism (“SSM”) of the tasks of prudential supervision on ‘significant’ banks, the MoU is currently limited to financial conglomerates that include ‘less significant’ credit institutions; it also specifies the operational procedures that the Authorities responsible for exercising supplementary supervision over the latter intend to follow in order to measure the significance of the insurance and banking/investment services sectors in relation to the total group, taking into account the nature of the participative ties being.

Newsletter n. 105 – March 2025