Italian right of withdrawal from derivative transactions

Author: | Published: 10 Jul 2013
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Studio Legale Beltramo

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Via Vittorio Veneto 84
Rome 00187

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+39 06 481 7747

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+39 06 482 0281

The Italian Supreme Court, through its decision No 13905 of June 3 2013, has now recognised the right of non-professional clients to receive wider protection when dealing in financial instruments or investment services.

Differently from past court precedents, the Supreme Court now states that financial intermediaries are bound to give their clients the right of withdrawal to be exercised within seven days from the date of the entering into of the relevant transaction, failing which the transaction may be declared null.

The principle is to be applied to door-to-door promotion and placement of financial instruments or investment services in a place other than the registered office or establishment of the financial intermediary pursuant to the provisions of section 30 of Legislative Decree No 58/1998, as amended.

The principle contained in Decision No 13905 is to be extended also to the entering into of derivative transactions for which non-professional clients (including local authorities when applicable) are entitled to be given the withdrawal right from the relevant transaction.

With Decision No 13905, the Supreme Court intentionally recognises a less favourable position to those financial intermediaries which follow aggressive marketing policies by door-to-door selling.

Susanna Beltramo