The Central Bank of San Marino announced a wide-ranging set of targeted amendments to its supervisory rulebook in Regulation No. 2025-01, which enters into force on 28 January 2025 after a public consultation. The 17-article measure revises and supplements 14 existing regulations and circulars and adds cross-cutting final, transitional and consolidation provisions affecting the wider supervisory framework. For banks, the changes add trading in precious metals for investment to permitted activities, allow the risk-weighted assets (RWA) value to be reduced for prudential hedges under the calendar provisioning Pillar II framework, and permit the head of the executive structure to hold other roles where compatible with time commitments and the bank’s business. Insurance distribution rules allow more than one head of distribution activity (RAD) where documented needs exist and clarify transitional arrangements for professionalism requirements under the move from Regulation No. 2024-02 to Regulation No. 2025-01. For insurance companies, the amendments coordinate enterprise and distribution requirements, align terminology and annexes across the two-rule structure, and introduce a dedicated pre-contractual information set for certain insurance investment products offered as dedicated contracts to professional clients with minimum sizing and a dedicated internal fund. Professionalism requirements for off-site providers and independent financial advisors are aligned to the regime for insurance intermediaries, including a Specific Integrative Test (TIS) on San Marino rules for those admitted via a foreign suitability test. Corporate-form professional trustees can register additional qualified staff as deputy heads of the Trustee Office, while cross-sector provisions add authorisation rules for statutory changes to corporate purpose and allow a group audit firm to certify the financial statements of consolidated investees or equity participants. The Central Bank also notes that the package completes the replacement and express repeal of legacy provisions issued by the former Credit and Currency Inspectorate and finalises the update of supervisory templates.
Central Bank of San Marino 2025-01-27
Central Bank of San Marino issues targeted supervisory rule revisions for banks, insurers and intermediaries effective 28 January 2025
The Central Bank of San Marino's Regulation No. 2025-01, effective 28 January 2025, allows banks to trade in precious metals for investment, adjusts risk-weighted assets for prudential hedges, and permits certain executive role overlaps. It also revises insurance distribution rules, aligns professionalism requirements for financial advisors, and updates corporate trustee registration and audit certification processes.