In brief

Italy Financial Regulatory recently updates.

Resolution and financing planning: adoption of IVASS Regulation No. 47/2021 (Regolamento n. 47 IVASS del 27 aprile 2021)

On 27 April 2021, the IVASS issued the IVASS Regulation No. 47 of 27 April 2021 (the "IVASS Regulation No. 47/2021") on provisions concerning recovery plans and short-term finance schemes pursuant to Title XVI (Safeguards, reorganization and winding up measures) of Legislative Decree No. 209 of 7 September 2005 (the Italian Code of Private Insurance, the "CAP"), implementing Article 223-ter of the CAP.

The IVASS Regulation No. 47/2021 will enter into force on the twentieth day as of its publication on the Official Journal of the Republic of Italy (Gazzetta Ufficiale).

Supervisory reporting: new reporting modalities for life insurance products (Lettera al mercato del 20 aprile 2021)

On 20 April 2021, the IVASS published a letter to the market announcing that, as of 30 June 2021, the communications relating (i) to new life insurance products marketed or life insurance products recalled from the market, which are due by Italian insurance undertakings and Italian branches of third-country insurance undertakings, and (ii) to the interest rate risk, which are due by Italian insurance undertakings operating in the life insurance sector, shall be submitted to the IVASS using the INFOSTAT platform only, in XML format, according to the Instructions for the compilation of reports available on the IVASS's website.

INFOSTAT: new authentication modalities (Nuova modalità di autenticazione ai servizi INFOSTAT di raccolta dati)

On 19 April 2021, the IVASS published a notice announcing the introduction of new modalities for the authentication of operators on the INFOSTAT platform. In particular, a two factors authentication system has been established, requiring operators to access the platform using their credentials (i.e., username and password) and a one-time-password sent via SMS to a designated mobile phone. As of 1 October 2021, at the end of a temporary regime, the use of the two factors authentication system will become mandatory for all the operators.

Insurance intermediaries: new electronic form for the submission of information (Aggiornamento del modello elettronico PDF per le comunicazioni al RUI)

On 1 April 2021, the IVASS published a notice announcing the adoption of a new version of the electronic form used to communicate with the Registro unico degli intermediari (Single intermediaries' register, the "RUI"). The updated version of the electronic form no longer requires to (i) indicate, including any variation of, secondary offices of intermediation companies, (ii) report the enrolment of collaborators of intermediaries operating under the freedom to provide services regime, (iii) communicate the renewal of the insurance policy for civil liability, and (iv) communicate the operations of Italian intermediaries in the United Kingdom and Gibraltar. On the other hand, in case of new enrolment on the RUI, intermediaries are required to include a declaration on the possession of a degree equivalent to at least an Italian high school diploma.

Motor liability: consultation on a draft IVASS Regulation (Documento di consultazione n. 3/2021)

On 26 March 2021, the IVASS launched a public consultation concerning a draft IVASS Regulation on the creation of the new estimator for motor liability insurance. The aim of the provisions under consultation is to establish a free and impartial online comparative estimator service, providing consumers with a transparent comparison of all the basic motor liability policies offered by insurance undertakings in Italy.

The deadline for the submission of observations is set at 25 May 2021.

Tax credit: IVASS implementing clarification on the treatment of tax credit introduced by Covid-19 emergency regulations (Chiarimento applicativo sul trattamento dei crediti d’imposta connessi con i decreti legge “Cura Italia” e “Rilancio”, riguardante il Regolamento ISVAP n. 22 del 4 aprile 2008, il Regolamento ISVAP n. 38 del 3 giugno 2011 e il Regolamento IVASS n. 24 del 6 giugno 2016)   On 24 March 2021, the IVASS published a clarification on the treatment of the tax credit introduced by Legislative Decree No. 18 of 17 March 2020, as converted by Law No. 27 of 24 April 2020 (the "Heal Italy Decree") and by Law Decree No. 34 of 19 May 2020, as converted by Law No. 77 of 17 July 2020 (the "Restart Decree"). In particular, the IVASS provides clarification on treatment of the tax credit for the purpose of their eligibility as technical provisions, inclusion on the relevant assets for the calculation of the performance of segregate assets and accounting treatment in the financial statement.

Capital add-on: consultation on a draft IVASS Regulation (Documento di consultazione n. 2/2021)

On 24 March 2021, the IVASS launched a public consultation on a draft IVASS Regulation concerning provisions on capital add-ons implementing Articles 47-sexies and 216¬-septies of the CAP. In particular, the criteria and modalities for the calculation of the capital add-ons are identified, as provided by Article 47-sexies, paragraph 1, letter c), of the CAP.

The deadline for the submission of observations expired on 23 April 2021.

POG: IVASS FAQ on Regulation No. 45/2020 (FAQ su chiarimenti applicativi concernenti il Regolamento IVASS n. 45/2020)

On 23 March 2021, the IVASS published FAQs regarding clarifications on the IVASS Regulation No. 45/2020. These FAQs provide clarifications on (i) the verification duties for insurance undertakings applicable to horizontal collaborations, and (ii) the applicable rules in case of co-production of an insurance product by an insurance intermediary and an insurance undertaking.

Insurance distribution: IVASS FAQ on order No. 97/2020 (FAQ su chiarimenti applicativi concernenti le modifiche introdotte dal Provvedimento IVASS n. 97/2020)

On 23 March 2021, the IVASS published FAQs on implementing clarifications to the IVASS order No. 97/2020. In particular, these FAQs provide clarification on various issues relating insurance distribution, including, inter alia, insurance advisory activities, the use of distant communication techniques and pre-contractual information documentation.

Supervisory activities: IVASS tests mystery shopping (Comunicato stampa del 19 marzo 2021)

On 19 March 2021, the IVASS published a press release announcing the beginning of the experimentation of mystery shopping practices. Undercover operators, so-called mystery shoppers, will visit insurance distributors in order to assess the compliance of their selling techniques with the applicable regulations. Online distribution channels are also in scope of this experimentation.