David Maria Marino Valentina Grande May 23 2023 Joint consultation paper published to prohibit certain financing DLA Piper | Insurance - Italy David Maria Marino, Valentina Grande Insurance Joint consultation paperNew supervisory measures and impact on insurance companiesNext stepsJoint consultation paperOn 28 April 2023, Ivass, Banca d'Italia, Covip (ie, national authority responsible for the supervision of Italian pension funds and the Italian Ministry of Economy and Finance (MEF) launched a joint consultation paper related to specific controls that insurers will implement to prevent the financing of companies producing anti-personnel mines, cluster munitions and submunitions.Prohibiting the financing of companies producing anti-personnel mines, cluster munitions and submunitions is set forth by Law No. 220/2021. By enacting Law 220/21, Italy implemented and enforced the 1997 Ottawa and 2008 Oslo Convention on anti-personnel mines and cluster bombs and requires corporations to set up their compliance policies to secure effective implementation of the prohibition concerned.The aim of the consultation paper is to agree on the level of supervisory authorities on a common set of rules to be followed to verify the implementation by the interested subjects of compliance policies.New supervisory measures and impact on insurance companiesThe prohibition set forth under Law No. 220/221 applies both to Italian insurance companies and European Economic Area (EEA) and third-country insurers with a permanent establishment within Italian territory. Therefore, they will all be subject to supervision by Ivass once the proposed rules are approved.Insurance companies will be required to adopt internal policies aimed at ensuring effective implementation of the prohibition concerned. These policies will be validated by the appropriate internal division.Such policy should include the following:duty to prior consultation of lists publicly available of companies manufacturing anti-personnel mines, cluster munitions and submunitions; andprocedures to assess whether the beneficiary of a transaction may be a company active in the manufacturing of anti-personnel mines, cluster munitions and submunitions.Moreover, insurers should ensure adequate internal information flows, especially in the event of EEA insurers or third-country insurers, with their head office abroad.In the case of insurance groups, the policy could be adopted at the group level by the parent company.Next stepsThe consultation paper is open for observations and comments for a period of 45 days from its publication, or 12 June 2023, on the websites of the supervisory authorities.The supervisory authorities will carefully review all observations and comments received. Once finalized, the new set of rules will be published in the Italian Official Journal and on the websites of the Supervisory Authorities. All interested parties, including insurers, will be required to comply with the new rules within four months from the date of publication in the Official Journal.For further information on this topic please contact David Maria Marino or Valentina Grande at DLA Piper Studio LegaleTributario by telephone (+39 02 80 61 81) or email ([email protected] or [email protected]). The DLA Piper Studio LegaleTributario website can be accessed at www.dlapiper.com.