Bank of Italy Proposes Amendment to Regulation on Collective Asset Management

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Overview


On Thursday 30th July 2020, the Bank of Italy released a consultation paper containing some proposed amendments to the Regulation on Collective Asset Management.

It is worth noting that the Bank of Italy is proposing to eliminate the 10% concentration limit which is currently in place for Alternative Investment Funds (AIFs) reserved to professional investors, which intend to carry out financing activities in Italy.

As from the date when the AIFMD was transposed in Italy by the Bank of Italy (January 2015), AIFs are allowed to carry out direct lending in Italy (previously permitted only to banks and securitization vehicles), though, the 10% concentration limit (to be met within 6  months from the date of establishment of the AIF) represented, de facto, an obstacle to the alternative financing schemes. The prospective amendments to the Regulation shall have a relevant impact on the Italian financing market, allowing foreign AIFs to carry out lending activities (including acquisition of NPLs) in Italy with no substantial limitation.

The consultation will end on 28th September 2020. The outcome of the consultation process and the date of final approval of the new Regulation is uncertain but it is reasonable to expect to take place by the end of the year.

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