On 9 May 2016, CONSOB published on its website three draft recommendations on public consultation with a view to increase investors' protection and enhance the transparency of information on financial products. The proposed recommendations aim, respectively, to:

  1. Provide guidance in relation to key information to be disclosed to retail clients in the distribution of financial products. In this respect, CONSOB encourages financial intermediaries to use standardized pre-contractual documents (so called 'schede prodotto'), in order to set out, clearly and concisely, the main features of the financial instruments offered, their risks, costs and expected returns. The relevant consultation document is available here (in Italian language only).
  2. Set out guidelines in relation to the 'Investor Warnings' section to be inserted in the prospectuses for the public offering and/or admission to trading in regulated markets of financial instruments. Such section is currently not envisaged by the European Prospectus Directive's rules and contains a brief description of the main risks related to the issuer and the securities. The relevant consultation document is available here (in Italian language only).
  3. Draw the issuers' attention on the possibility to proceed to the distribution of financial instruments through multilateral trading systems (such as regulated markets or MTF), rather than using the traditional distribution channels. The distribution via multilateral trading systems and the relevant price formation mechanisms are indeed more transparent, less affected by conflicts of interest and would render the financial instruments more liquid. The relevant consultation document is available here (in Italian language only).

Responses to the consultations must be submitted by 8 June 2016