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IT - Position of Bank of Italy on depositary bankruptcy

01/01/2017

On January 27, 2017, in a letter addressed to the Italian association of asset management companies, Bank of Italy has confirmed that the liquidity of an investment fund (UCITS/AIF) is not at risk in case of bankruptcy of the depositary.

On January 27, 2017, in a letter addressed to the Italian association of asset management companies, Bank of Italy has confirmed that the liquidity of an investment fund (UCITS/AIF) is not at risk in case of bankruptcy of the depositary. However, the risk exists for pension funds and SICAV/SICAF. Bank of Italy has based its position on a very rigorous reading of the applicable Italian laws, thus highlighting misalignments among them. With regard to discretionary mandates: they are protected when offered (i.e. managed) by an authorized intermediary different from a bank (disregarding the fact that, in turn, such authorized intermediary posts the liquidity at a bank); they are not protected when offered (i.e. managed) by a bank.

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