Italy to slash three regulatory bodies

A new Italian authorities law looks set to abolish three regulatory bodies as the country attempts to bring in legislation to prevent a future Parmalat scandal.

It is hoped that the changes, which have not yet been approved by the government, will restore foreign investors’ confidence in the region.

The proposed changes would mean the disappearance of the current insurance regulator and the pension fund, with those industries being regulated by the Autorità per i Mercati Finanziari.

The changes also propose to bring the Italian Exchange Office back under the power of the Bank of Italy.

Jeff Greenbaum, a partner in Lovells’ Italian practice, said: “One of the extreme difficulties for foreign companies coming into Italy is a non-understanding of which institution should be dealt with.”

The proposed changes would also see a much greater personal liability placed on top-level company executives if a company runs into financial trouble.