Navigating through Covid-19
Impact on regulated firms in the financial services sector
Italy was the first country in Europe to be affected by the disease and also the first country to take measures to deal with the Covid-19 emergency.
Except as discussed below, firms are expected to continue to comply with their regulatory obligations, especially those as apply in a crisis or risk management context.
The Bank of Italy and IVASS have made reference to the measures adopted at European level by the European Supervisory Authorities (ESAs) and, with specific reference to significant banks, by the European Central Bank (ECB).
Therefore, firms are expected to have contingency plans in place to deal with major events, covering operational risks, the ability of firms to operate effectively and to address customers’ needs adequately.
Moreover, on 20 March the Bank of Italy announced a series of measures aimed at facilitating the activities of supervised banks and other intermediaries, which have been placed in difficulty by the ongoing health emergency, including the timing extension for upcoming reporting deadlines and the possibility to operate temporarily with capital and liquidity ratios below the required levels.
Key considerations will include:
- Market abuse surveillance and controls
- Telephone taping requirements
- Systems and controls, particularly data confidentiality, risk management and operational resilience
- Effective supervision
- Management Information
- Licensing concerns/risk of a permanent establishment
- Bank of Italy measures aimed at facilitating the activities of supervised banks and other intermediaries
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