Consob vara rules Who sells the shares and bonddeve be more clear – Corriere della Sera

Has arrived. It is part of the “package” when asked by the president of the Italian banking Association, Antonio Patuelli, to improve relations between banks and their customers, and also reduce the number of disputes. Is the new Recommendation, just published by Consob, to make it “more clear and effective” Warnings for the investor, an instrument – accurate to the Commission, which supervises listed companies, chaired by Giuseppe Vegas – “although not part of the prospectus serves to highlight in a few pages the risks of particular significance relating to the company and/or the financial instruments are offered to the market”.

Antonio Patuelli, president of the Italian banking Association

In essence, we ask that the text of the Warnings is published “with good evidence, on the page immediately following the cover page of the prospectus, in characters that are easily readable, conversational style, avoiding acronyms, and tables.” An appeal to the financial companies because they provide the information on the products they sell with “brevity and terseness, simplicity of exposition, clarity, and immediacy”. The Warnings to the investor, there are already , but take up many pages, and often they are so descriptive or tautological as to be useless.

central points

The Recommendation in the recently published calls, which are now set out clearly the main points such as , lists Consob: 1) “the aim of the operation”; 2) “the possible uncertainty as to the continuity of the company”; 3) ” the characteristics of the financial product proposed, representing the potential complexity and the risk of illiquidity, which may affect the recovery of the investment”. In short, those who buy risky assets should be more informed than before on risk.

claims earlier

the Event of December 2015 in front of the Banca Etruria

The goal of supporting the Consob, is “to improve the quality of information available to savers and investors”. The document comes between the else after that, in the past few months, Vegas was contested to have admitted that the prospectuses – that is, the documents attached by law to the financial instruments, from shares to bonds and loans – are long and complex. “An excess of information is the equivalent of almost always a lack of information,” he admitted on the 9th of may Vegas. Was in front of the financial community, which held its sixth speech, and announced three measures for the protection of savings, also because the information is made more simple, and the prospectuses more readable.

Customers who have lost everything in investments in bank bonds (December 2015)

“We need to take note that the world has changed”, said the chairman of Consob. The world bank, in particular, was in full storm, for the case of the contribution required of holders of subordinated bonds to avoid the bankruptcy of the Banca Etruria, Banca Marche, CariFerrara, CariChieti, the four banks placed in resolution, the 22 November. The decree of the 22nd of November 2015 had an explosive effect retroactively on more than 10 thousand holders of bonds subordinate, called to heal the debts of the four institutes Is now interesting the sentence with which it is stated that the Warnings on the prospectus must be read from the savers “independently”, i.e. without need of any expert. The standards will be effective within 30 days from the publication of the Recommendation”, and then from the first of December 2016, to give time to the banks and asset management companies to make consistent the “Warnings” to the new rules.

braking on the Priips

this is the second Recommendation of Consob, which goes in this direction. Following on from that of October 18, on “Distribution of financial instruments via a trading venue, multilateral”. The third is that on the “key Information to be provided to retail customers in the distribution of financial products”: the “cards” in short, with which the bank or the promoter should accompany the offering of the shares, investment funds, bonds and other products. The identity cards of what you buy. The latter is still under examination because it is jammed in the machine, european, says, in substance, to the Consob. In fact, we must wait what will decide the Eu in relation to the key information to provide the products to the detail. The regulation on Priips, financial products, pre-assembled array of banking and insurance companies, was in the pipeline, but the european Parliament has stopped everything (even to the pressure of the lobbies insurance companies, according to some observers). We expect that the Commission clarify, believes the Consob.

appointments internal

Consob also extended by 18 months the mandate of the director-general, Angel Type, which was expected due January 11, 2018, and renewed the mandate to the deputy director general, Giuseppe D’agostino. Put will remain in office until July 11, 2019, and D’agostino until July 11, 2019.

October 31, 2016 (amendment 31 October 2016 | 16:02)

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