The Italian Companies and Stock Exchange Commission, Commissione Nazionale per le Società e la Borsa (CONSOB), has published Q&As that clarify certain issues concerning the interpretation and application of the Communication on the distribution of complex products to retail clients which was issued on 22 December 2014 (the Communication).
- The Communication requires intermediaries to comply with the contents of two opinions that were issued by the European Securities and Markets Authority dealing with:MiFID practices for firms selling complex products (7 February 2014); and
- Structured Retail Products – Good practices for product governance arrangements (27 March 2014).
The Q&As that CONSOB has now issued provides guidance to intermediaries and relate to:
- scope of application of the Communication;
- the controls that intermediaries should put in place to help ensure compliance with the new framework;
- the categories of products that are considered to be “highly complex”; and
- the requirements imposed on intermediaries (i.e. in relation to the notification to Consob of the measures adopted in order to take into consideration the above mentioned ESMA opinions and the Communication)