On 24 January, the Italian Ministry of Economy and Finance published a press release informing of having prepared, in full cooperation with the supervisory authorities and after having heard trade associations, the necessary measures (the "Measures") in order to ensure full continuity for markets and intermediaries in case of a no-deal Brexit. The measures will enter into force in case of no-deal withdrawal.
The Measures aim at ensuring financial stability, integrity and service continuity for markets and intermediaries – operating in banking, financial or insurance sectors (even if operating in the complementary social security sector) – as well as depositors, investors and clients protection in general, by introducing an appropriate transitional period in which these subjects will be able to continue to operate under the current regime. These Measures will apply to UK-based market players operating in Italy and vice versa.
The Measures will be differentiated depending on the nature of the relevant market player and will set the requirements that the different types of intermediaries will have to fulfil in order to be able to continue to operate even beyond the transitional period, so as to define a sure framework which will allow each market player to adjust its activity to the new institutional and regulatory context that will be set.
Similar provisions will be set in the section of the Measures regulating trading venues and the access by market operators to the trading venues. Also in this context, the provisions concerning the transitional period will apply to both UK managers of trading venues operating in Italy and vice versa.
With respect to investments of pension funds in UCIs of the UK of Great Britain and Northern Ireland, the Measures will set the possibility to continue to maintain these investments during the transitional period.
The Measures are only aimed at preventing a lack of continuity in activities which are regulated under Italian law, in accordance with relevant EU harmonised rules. The date of enactment of the Measures depends on forthcoming developments and consequent decisions that will be taken in the UK about the withdrawal from the EU. In any case, the Measures will be issued in good time to ensure that operations are conducted in an orderly manner and to provide a new sure regulatory framework in case of a no-deal Brexit.