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Italy

Studio Legale Beltramo Rome

CONSOB has recently stated that whenever a first subscription and in any case whenever a new investment is made, that transaction must be documented in writing through a subscription form attached to the prospectus in line with the requirements of Legislative Decree no. 58 of February 24 1998 (Articles 94 and the following) and in Articles 13 and 22 of CONSOB Regulation No. 11971 of May 14 1999. The reason for such a requirement is the protection that the regulator wants to offer to the investor. It requires proof of the investor's knowledge prior to the investment based on the information contained in the prospectus. The need for the subscription form, however, is waived for subsequent transactions such as those for the transfer of quotas of investment funds previously purchased, the subscription of further quotas contemplated since the execution of the initial contract, or the reimbursement of quotas.

A phone banking service may be used to the extent that its use is described in the regulation of the investment fund to be approved by Bank of Italy but the phone service cannot be used for the transfer of the quotas initially subscribed in another system of investment funds even if managed by the same company.

The rule is applicable not only to quotas of Italian investment funds but also to quotas of foreign investment funds offered in Italy and in the second case the operation of the phone banking service must be indicated in the document describing the Italian marketing procedures.

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