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Chamber of Conciliation and Arbitration

Legislative decree 179 of October 8 2007 has established a Chamber of Conciliation and Arbitration at Consob. It will manage disputes arising between investors and intermediaries when intermediaries breach the obligation of information, correctness and transparency that is part of their contractual relationships with investors. The proceeding must last no more than 60 days from the date of filing of the initial petition. The investors that may benefit from the conciliation and arbitration proceedings are non-professional customers. The organisation of the Chamber and the rules for the proceedings are to be established by Consob, subject to prior agreement with Banca d'Italia, within 12 months of the date of enactment of decree 179.

Petitions for conciliation are permitted when the dispute has not already been submitted to another conciliation body, when the claim has been presented to the intermediary, or when the claim has been presented to the intermediary and it has not responded after more than 90 days have elapsed from the claim's filing. Should such a breach be assessed, an indemnity may be liquidated in favour of the customer. The investor remains entitled to sue before an ordinary court to obtain compensation for additional damages arising from the intermediary's breach.

Through decree 179, the legislator aims to reinforce investors' protection and avoid court litigations as far as possible.

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