CONSOB

The name CONSOB corresponds to Commissione Nazionale per le Società e la Borsa, which can be translated as “National Commission for Companies and the Stock Exchange.”

The authority notably ensures the transparency of the financial market and the compliance with conduct rules by professionals under its jurisdiction. It also participates in financial education and cooperation between national and foreign authorities. CONSOB

For an investor, CONSOB is a useful entry point to search for information on investment players and the risks of unauthorized financial activities.

However, the mere mention of CONSOB in a commercial presentation is not sufficient: one must verify the concerned entity, its status and the services it can actually provide.

Supervise financial markets

CONSOB intervenes in market supervision and the fight against abuses, notably insider trading and market manipulation.

These missions help preserve the quality of market functioning and investor confidence. CONSOB

Control financial information

Investors need information that is understandable and sufficiently complete to analyze a company or an operation.

CONSOB controls the information distributed to the market by issuers under its supervision. This mission should be distinguished from an assessment of the economic interest of an investment: regulatory control does not constitute a purchase recommendation.

Regulate investment services

CONSOB carries out regulatory and supervisory missions concerning investment services and activities.

The control notably covers compliance with obligations applicable to the actors concerned and their behavior towards investors. The precise allocation of responsibilities depends however on the professional category and the activity exercised. CONSOB

Fight against unauthorized financial activities

CONSOB has a specialized service in the fight against illegal financial activities.

Its scope notably includes investment services provided without authorization, certain offerings of financial products made without the required documents, as well as unauthorized activities related to crowdfunding and crypto-assets. CONSOB

Italian financial supervision relies on several authorities. CONSOB and the Banca d’Italia, the Italian central bank, carry out complementary missions.

Banca d’Italia supervises both banking and non-banking intermediaries. Its missions notably include controls, authorizations and administrative measures. Bank supervision is part of the European banking supervision mechanism. www.bancaditalia.it

To verify an institution, one must therefore avoid searching for a single authority that covers all its activities indiscriminately. The same actor can be subject to shared competences.

The role of the OCF

TheOCF, or Organismo di vigilanza e tenuta dell’albo unico dei consulenti finanziarimaintains the unique register of the relevant financial advisors and exercises their supervision.

CONSOB specifies that this responsibility covers three categories:

• financial advisors authorized to offer products outside an establishment;
• independent financial advisors;
• financial advisory firms.

The maintenance of the register and supervision of these categories have been entrusted to the OCF since December 1st 2018. CONSOB, for its part, exercises oversight over the OCF. CONSOB

Why is this distinction important?

For an individual seeking an advisor in Italy, verification should not be limited to a search on the CONSOB website.

The public register of the OCF allows searching for professionals belonging to the relevant categories. It is necessary to identify their registration and understand under which status they operate.

The general term "financial advisor" is therefore insufficient to determine all the services a person or company can provide.

TheIVASS, or Istituto per la vigilanza sulle assicurazioniis the Italian supervisory authority for the insurance sector.

It notably supervises insurance and reinsurance companies as well as intermediaries within its scope. Its missions concern their prudent management, transparency, and conduct towards clients. www.ivass.it

The allocation of responsibilities can be more precise for investment products based on insurance. CONSOB notably intervenes on transparency and conduct rules when some of these products are distributed by banking or financial intermediaries. www.consob.it

For a wealth operation, it is therefore necessary to distinguish:

• the company underwriting the insurance contract;
• the intermediary distributing it;
• any associated investment services.

1. Identify the company actually providing the service

Note the legal name appearing in the contract, legal notices and commercial documents.

A brand name may differ from the contracting entity's name. Belonging to a known group does not automatically assign the authorizations of one company to all others.

2. Determine the status to look for

The correct source depends on the professional:

This distribution reflects the diversity of competent bodies. It does not exempt from reading the detailed information related to the professional searched for. www.bancaditalia.it

3. Check the covered activities

The essential question remains: Is the professional authorized to provide the service stipulated in your contract?

Advice, portfolio management, order transmission and insurance distribution correspond to distinct services. Their commercial presentation must be compared with the actual status held.

4. Confirm your interlocutor's identity

Compare the professional's contact details, website, and email address domain.

In case of doubt, contact the establishment directly using contact details obtained independently from the solicitor. This approach allows to complement the verification of status with that of the interlocutor's real identity.

5. Consult official alerts

The CONSOB website is a source to consult for information related to unauthorized financial activities and investor protection.

The anti-illegal practice measures notably cover investment services and certain crowdfunding activities or those related to crypto-assets. CONSOB

For certain activities, European mechanisms allow a professional authorized in one EEA State to operate in another State.

However, an Italian status does not constitute a general authorization to provide all financial services in France.

It is necessary to check:

• the category of the professional;
• the activities covered;
• the conditions of their cross-border intervention;
• any notifications or necessary authorizations.

For the establishments concerned, the ACPR recommends consulting the French registers and that of the authority of the country of origin. acpr.banque-france.fr

Reference to CONSOB or registration with the OCF must therefore be examined in the precise context of the service offered to the French client.

No. The regulatory status of a professional does not guarantee either the performance of an investment or the absence of capital loss.

Two verifications must be carried out:

• that of the professional, their identity and authorizations;
• that of the investment, its risks and conditions.

Before subscribing, in particular examine the fees, liquidity, investment duration, underlying assets and conditions of any guarantee.

A product offered by a regulated entity can still be risky or unsuitable for your situation. The decision must be based on its characteristics and your objectives, not solely on the presence of a regulatory reference.

Make a complaint to the professional

The first step is to formalize the problem with the intermediary involved.

Keep contracts, statements, exchanges and commercial documents. CONSOB indicates that before sending it a report, it may be useful to present a formal complaint to the professional and attach their possible response. adempimenti.consob.it

Distinguish between reporting and dispute resolution

Reporting a possible breach to the regulator does not equate to obtaining a decision on an individual compensation claim.

For certain disputes relating to investment services, a specific mechanism exists: theArbitro per le Controversie Finanziarie, or ACF.

Understanding the role of the ACF

The ACF is an extrajudicial dispute resolution body established by CONSOB.

It can examine, under conditions, disputes between retail investors and intermediaries concerning breaches of obligations of diligence, fairness, information and transparency. The procedure is free for the investor and does not necessarily require a lawyer. ACF

Its competence scope is limited: it does not cover all financial products and services. It must notably be distinguished from mechanisms intended for banking disputes concerning accounts, credits or payments. L'economia per tutti

CONSOB is a reference authority for understanding investor protection and the oversight of Italian markets.

To choose a contact, it is nevertheless necessary to identify the competent body according to their activity, verify their status and examine the services offered.

You can discover professionals and compare their specialties on Les Experts du Patrimoine, then complete your research with the appropriate official Italian registers.