Italy: The butterfly effect
In March 2008, the Bank of Italy issued a supervisory regulation regarding Italian banks' and bank holding companies' internal organisation and corporate governance. The regulation was an implementation of guidelines set in August 2004 by the minister of economic affairs on the principles banks and other financial intermediaries should follow when adopting the governance systems introduced in the 2004 corporate law reform. In fact, since 2004 Italian stock corporations have been given the option to adopt, in addition to the traditional Italian model (based on a board of directors and a board of statutory auditors with technical oversight powers), either a one-tier or two-tier governance and supervisory structure.. The regulation aims both to provide guidance to banks on how to implement the governance model and to safeguard the sound and prudent management of banks. The deadline to adopt the new principles is June 30, 2009. The level of detail and the prescriptive nature of the provisions have been criticised by commentators because of the significant restrictions imposed on the banks' ability to freely implement the governance systems provided for under Italian corporate law.
This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.
A PREMIUM SUBSCRIPTION PROVIDES:
- Trusted insight, news and analysis from the UK and across the globe
- Connections to senior business lawyers within the leading law firms and legal departments
- Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
- The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
- Optimized access on all of your devices: desktop, tablet and mobile
- Complete access to the site's full archive of more than 56,000 articles
Already have an account? Sign In Now
For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651