The Bank of Italy, recently published a consultation document, dated 16 September 2015, concerning some amendments to the provisions of the Bank of Italy Regulations on sanctions and on the sanctioning procedure of 18 December 2012.

The proposed amendments are the consequence of the important changes that the CRD IV and the Single Supervisory Mechanism have introduced on sanctioning following their coming into force. Pursuant to these EU requirements, most of the prudential supervisory functions on credit institutions, including the application of certain sanctions, have been attributed to the European Central Bank.

The proposed amendments will result in a comprehensive overhaul of the current Italian regulatory framework on sanctions that can be imposed on credit institutions and financial intermediaries, and in a shift from a sanctioning system which focuses on the punishment of the individual responsible for the breach, imposing relatively small financial sanctions, to a system in which the fines are hefty, and the sanction is primarily imposed on the institution as well as on the individual who materially committed the breach. Moreover, the new regulatory framework contemplates other sanctions in addition to fines.

The consultation closes on 16 November.

Please see the website of the Bank of Italy (Italian only):