News

The Bank of Italy releases no-deal Brexit related guidance for UK firms
  • 25 Feb 2019

With a communication released this morning, the Bank of Italy has issued guidance for UK banks, payment institutions and IMELs operating in Italy through branches and on a cross-border basis (or through local agents or intermediaries) in contemplation of a no-deal Brexit.

They are required to make promptly available to their clients in Italy a detailed informative note on the impacts of Brexit.

In particular, they will have to provide specific information to their Italian customers on:

  • the impacts of Brexit on their current agreements, including in case of a possible termination of their activities in Italy;
  • the consequences of any Brexit related corporate reorganisations, including with regard to transfers of going concerns or of contractual relationships "in bulk";
  • any available alternative dispute resolution schemes;
  • any available depositor protection schemes, where relevant.

Such communications shall be provided in a plain and easily understandable language and avoiding any tones that may cause unnecessary alarm. They have to be drafted in the language selected by the client in the relevant agreement or (where this is not possible) in the same language of the terms and conditions for the provision of the relevant services.

Clients must be provided with contact details of persons who may provide clarifications and assistance as well as with updated information on the competent offices for the handling of complaints.

UK firms shall also publish a similar informative note on their internet site at least both in Italian and in English.

UK firms are reminded of the need to ensure strict compliance with their contractual obligations and with any applicable Italian regulatory provisions including those relating to contract termination, contract portability, unilateral amendments and assignment of contractual relationships.

Should they expect major impacts on the continuation of the services or on the exercise of clients' rights, they shall immediately inform the Bank of Italy thereof by sending an email to the offices responsible for Brexit related matters (Brexit_TCA@bancaditalia.it) or to the certified electronic mail address of the Bank of Italy (TCA@pec.bancaditalia.it).

The full text of the communication in English is available here or at http://www.bancaditalia.it/media/notizia/information-for-italian-customers-from-uk-based-financial-institutions-operating-in-italy/?com.dotmarketing.htmlpage.language=1