Italy updates IFD rules, guidance for investment firms
The Banca d'Italia has updated its rules and guidance for investment firms, detailing the transposition of Directive (EU) 2019/2034 into national law. The document, updated to December 31, 2025, includes provisions on model approval and regulatory reporting.
Mapping EU rules to Italian law
The Banca d'Italia's updated guidance meticulously details the transposition of Directive (EU) 2019/2034, the Investment Firms Directive (IFD), into Italian national law.
This comprehensive document provides direct links and references to national provisions, primarily drawing from the Consolidated Law on Finance (CLF) and the Bank of Italy Regulation on Investment Firm (IF) supervision, dated December 23, 2022.
Key areas covered include the subject matter, scope, and definitions of investment firms, along with the identification of competent authorities responsible for their oversight.
The guidance also addresses initial capital requirements, outlining specific articles within the CLF and the Bank of Italy Regulation that govern these crucial prudential aspects.
The CLF is explicitly available in English on the Consob website.
Further sections detail principles of prudential supervision, covering professional secrecy, investigatory powers, and sanctions, ensuring a robust regulatory environment for investment firms in Italy.
Supervisory oversight and reporting
The guidance also details the supervisory approach for approving alternative Internal Model Approaches (IMA) used by investment firms to calculate minimum capital requirements for market risk.
This includes outlining minimum documentation requirements and describing the assessment process, which involves self-assessment, external auditors, and on-site inspections.
Additionally, the document addresses specific disclosure requirements under Article 44 of the Directive.
It clarifies that while the Banca d'Italia has the power to mandate more frequent or specific media for these disclosures, this authority has not yet been exercised.
The guidance concludes with regulatory reporting, confirming the use of XBRL standards for submitting financial information to the competent authority, ensuring standardized data collection.
Clarity for complex compliance
This document provides crucial clarity for investment firms navigating complex EU and national regulations.
While highly technical, its detailed cross-references and explicit statements on unexercised powers offer valuable certainty for compliance officers.
The ongoing updates, such as the XBRL standard adoption, underscore a continuous effort to streamline supervisory processes.