On September 19 2010, a major reform of the Consolidated Banking Act (Tub) provisions pertaining to financial dealers took place when Legislative Decree No. 141 of August 13 2010 entered into force.
Prior to the approval of Legislative Decree No. 141, the activities of acquiring holdings, granting loans, providing services of payment and trading in foreign exchange to the public were restricted, pursuant to Art. 106 of Tub, to financial intermediaries recorded in a general register held by Bank of Italy and subject to its supervision.
In addition, the following had to be recorded in the special register held by Bank of Italy pursuant to Art. 107 of Tub, and be subjected to a significant supervisory activity by Bank of Italy:
(i) financial intermediaries engaged in the granting of loans with a volume of business equal to or higher than 104 million ($145 million);
(ii) financial intermediaries carrying out activities of acquiring holdings with a volume of business equal to or higher than 52 million;
(iii) financial intermediaries carrying out activities of trading in foreign exchange by own risk taking; and
(iv) financial intermediaries carrying out activities of issuing or managing debt and credit cards.
Persons subject to registration in the special register pursuant to Art. 107 of Tub initially included companies for the securitisation of receivables. The Provision of Bank of Italy of September 25 2009 ordered the removal of companies for securitisation of receivables from the special register pursuant to Article 107 of Tub, and maintained the requirement for registration in the general register under art. 106 of Tub.
The recent Legislative Decree No 141 has completely changed the above regulation by providing, in lieu of the special and general register of financial intermediaries, a sole register held by Bank of Italy.
Financial intermediaries recorded in the new register, held by Bank of Italy pursuant to Art. 106 of Tub, as amended, may carry out the activities of granting loans and providing payment and investment services towards the public under supervision by the Bank of Italy.
As to securitisation companies, Legislative Decree No. 141 provides that they now be incorporated as limited liability companies no longer subject to supervision by the Bank of Italy.
It follows that, as a consequence of the entering into force of Legislative Decree Number. 141, companies for securitisation of receivables are removed from the general register of Article 106 Tub, and may freely operate without being subject to any supervision by the Bank of Italy.
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