Banca d'Italia, Consob update EMIR oversight
Banca d'Italia and Consob have updated their joint document on the allocation of competences under the European Market Infrastructure Regulation (EMIR). The update clarifies the supervisory tasks for financial and non-financial counterparties, building on existing provisions.
New clarity for EMIR supervision
The updated document exclusively defines the EMIR supervisory competences of Consob and Banca d'Italia for financial and non-financial counterparties, where a specific definition of their respective tasks is deemed necessary beyond the existing provisions of the Consolidated Law on Financial Intermediation (TUF).
It explicitly states that the competences of IVASS and COVIP, also designated as competent authorities under EMIR by the TUF, are not covered.
The document categorizes supervised entities into homogeneous groups, outlining EMIR obligations for each and specifying the supervisory responsibilities of Consob and Banca d'Italia.
Supervision is legally divided between the two authorities based on the counterparty type and the nature of EMIR tasks.
This ensures a clear delineation of roles, particularly for banks, investment firms, asset management companies, and various non-financial entities subject to prudential supervision or other forms of oversight.
Specific tasks for each authority
The document meticulously allocates supervisory responsibilities for key EMIR obligations across various counterparty categories.
Consob primarily oversees the clearing obligation (Article 4, EMIR), reporting obligation (Article 9, EMIR), and notification of clearing threshold breaches for all financial and non-financial counterparties.
Conversely, Banca d'Italia is responsible for exemptions from the clearing obligation, daily valuation of OTC derivatives, exchange of collateral, and validation of initial margin models, specifically for financial and prudentially supervised non-financial counterparties.
For other non-financial entities, Consob assumes these latter responsibilities.
Portfolio reconciliation and compression also fall under Banca d'Italia for financial and prudentially supervised non-financial entities.
Dispute monitoring is a shared responsibility, with Consob specifically handling reporting from financial counterparties on disputes exceeding certain thresholds.
Enhanced clarity, reduced ambiguity
This updated document provides essential clarity for market participants navigating EMIR compliance.
By precisely delineating supervisory roles, it significantly reduces potential ambiguity and streamlines regulatory oversight.
The initiative underscores the ongoing commitment of Italian authorities to refine and enhance the effectiveness of financial market regulation.