Article 22 of the Italian Law Decree no. 183 of 31 December 2020 (in Italian “Decreto Milleproroghe”) provides for the measures applicable as from the end of the Brexit transition period (i.e. December 31, 2020, “Withdrawal Date”) to UK banking, financial intermediaries and insurance undertakings (“Italian Brexit Measures”).
The Law Decree was published in the Official Gazette of the Republic of Italy on December 31, 2020 (available only in Italian at this link).
According to the Italian Brexit Measures (see Article 22, paragraphs from 2 to 5) UK banking, financial intermediaries and electronic money institutions listed under Article 3 of the Italian Law Decree no. 22 of 25 March 2019 (as converted into Law no. 41 of 20 May 2019) (“Italian Brexit Law” available in English at this link), which at the Withdrawal Date have submitted to the Italian supervisory competent authorities (i.e. the Bank of Italy and Consob) a request for authorization to carry out in Italy the related activities as third-country intermediaries or for the establishment of an Italian intermediary to which business is to be transferred:
- may continue to carry out their activity in Italy limited to the management of their existing relationships (and with respect to derivative contracts not subject to clearing by a central counterparty, limited to the management of life cycle events according to article 3, paragraph 3 of the Italian Brexit Law) from the day following the Withdrawal Date until the conclusion of the authorization procedure with the aforementioned competent authorities, and in any case no later than six months following such date;
- during the period provided under point a) above, they are subject to the provisions applicable to third-country intermediaries according to the Italian Consolidated Banking Act (Decree Law no. 385 of September 1, 1993) and the Italian Consolidated Law on Finance (Decree Law no. 58 of 24 February 1998);
- in case of rejection of the request for authorization, they shall cease the relevant activity carried out in Italy, according to terms and timing not causing any detriment to Italian clients. This shall not apply to the activities required for the orderly termination of existing relationships as promptly as possible and in any case no later than three months from the date of the communication of such rejection by the competent authority.
The Italian Brexit Measures further require UK intermediaries to adequately inform Italian clients of the effects of the United Kingdom’s withdrawal from the European Union.