Thursday October 20 2016

News Source: Fund Regulation

Focus: Other

Type: General

Country: Italy




To increase investor protection and transparency CONSOB proposes that:

  • any financial instruments distributed to retail clients by intermediaries should be admitted to trading on a regulated market or a multilateral trading facility (MTF).
  • MTF managers provide the appropriate functionality to allow direct distribution on their systems
  • the offer price of such instruments provides full disclosure of its various elements (particularly fees which may not be reflected in the secondary market price)

The recommendations are intended to provide further protection for retail investors when trading financial instruments which may be complex in nature and possess increased transaction risks, such as liquidity risks. Currently, CONSOB believes that the best interests of the customer can be rejected in favour of the interests of the intermediary.

Intermediaries have six months to implement internal procedures to comply with the CONSOB recommendations or to adopt alternative processes to guarantee liquidity.

Click on the above link for the full CONSOB announcement (Italian).