Italian Securities Commission and Bank of Italy sign cooperation protocol on MiFIR intervention powers

The Italian Securities Commission (Consob) and the Bank of Italy have signed a memorandum of understanding setting out how they will coordinate and exchange information when exercising the product intervention power under the Markets in Financial Instruments Regulation (MiFIR) in Italy, in line with the division of responsibilities under the Consolidated Law on Finance (TUF). The arrangements cover intervention relating to financial instruments, structured deposits and connected financial activities and practices. The protocol provides for reciprocal information-sharing on instruments in circulation in Italy, including information arising from periodic analyses or from participation in the work of the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA). It also sets procedures and timelines for issuing the TUF-required opinion when one of the two authorities exercises intervention powers, and designates each authority as the other’s contact point for communications with EBA and ESMA. The release reiterates that MiFIR intervention powers can prohibit or restrict the marketing, distribution or sale of financial instruments and structured deposits, and can target related activities and practices such as placement methods, distribution strategies and incentive mechanisms; under the TUF, the Bank of Italy acts for financial stability while Consob acts for investor protection and the orderly functioning and integrity of financial and commodity markets, with measures potentially temporary or permanent and directed at banks, investment firms or market operators. The memorandum of understanding is available on the websites of the Bank of Italy and Consob.