Regulation on the Methods for Transmitting Applications and Notifications for Certain Supervisory Proceedings under the Single Supervisory Mechanism

1 REGULATION CONCERNING THE IDENTIFICATION OF THE METHODS FOR TRANSMITTING APPLICATIONS AND NOTIFICATIONS RELATING TO CERTAIN SUPERVISORY PROCEEDINGS WITHIN THE SINGLE SUPERVISIVE MECHANISM With this measure, the Regulation concerning the identification of the methods for transmitting applications and notifications relating to certain supervisory proceedings within the Single Supervisory Mechanism (the "Regulation") is issued. More specifically, the Regulation, which specifies what is generally established by Article 3 of the Bank of Italy's Uniform Regulation on Administrative Proceedings of July 21, 2021, concerns the methods for transmitting applications and notifications relating to proceedings and procedures regarding: a) authorization to conduct banking activities; b) revocation of authorization to conduct banking activities, if the proceeding is initiated upon application by a party; c) acquisition of qualified participations in significant and less significant supervised entities; d) the right of establishment and the free provision of services by significant and less significant supervised entities; e) the assessment of the suitability of key personnel and heads of main corporate functions of significant supervised entities. As provided by the Regulation, starting from January 15, 2022, applications and notifications relating to the aforementioned proceedings and procedures – which fall under the competence of the European Central Bank and for which the relevant applications must be transmitted to the Bank of Italy – are sent to the Bank of Italy through the Banking Supervision Portal or IMAS Portal. The objectives pursued are the digitalization of proceedings and the streamlining of information-sharing mechanisms between the European Central Bank and national authorities adhering to the Single Supervisory Mechanism through the development of integrated, user-friendly digital portals. Pursuant to the Regulation of July 9, 2019, concerning the rules for the adoption of normative acts or acts of general content by the Bank of Italy in the exercise of its supervisory functions, the Regulation does not constitute a regulatory act as it is adopted pursuant to Law No. 241 of August 7, 1990. Therefore, its submission to public consultation was not necessary. This measure and the Regulation will be published on the Bank of Italy's website and in the Official Gazette of the Italian Republic. The Regulation enters into force the day following its publication in the Official Gazette and applies to applications and notifications transmitted starting from January 15, 2022. The methods for transmitting applications and notifications provided for by the current legislation will continue to apply to administrative proceedings and pending procedures as of that same date. The Governor Resolution 639/2021 signature 1

2 Regulation concerning the identification of the methods for transmitting applications and notifications relating to certain procedures and certain proceedings provided for within the Single Supervisory Mechanism THE BANK OF ITALY Having seen Article 3-bis of Law No. 241 of August 7, 1990, and subsequent amendments, pursuant to which, in order to achieve greater efficiency in their activities, public administrations act through IT and telematic instruments, in internal relations, between different administrations and between these and private parties; Having seen Article 4, paragraph 3, of Legislative Decree No. 385 of September 1, 1993 (TUB), the Consolidated Law of Banking and Credit Legislation, and subsequent amendments, insofar as it provides that the Bank of Italy establishes the deadlines for acting, identifies the person responsible for the proceeding, and prescribes that the provisions of Law No. 241 of August 7, 1990, apply insofar as compatible; Having seen Chapters II, III, and IV of Title II of the TUB and subsequent amendments, which regulate the authorization to conduct banking activities, the establishment of branches, the free provision of services, as well as the purchase of participations in banks and the requirements of participants and key personnel; Having seen Article 3, paragraph 2, of Legislative Decree No. 58 of February 24, 1998, the Consolidated Law of Provisions on Financial Intermediation, which requires the Bank of Italy to define the deadlines and procedures for the adoption of acts and proceedings within its competence; Having seen Article 24 of Law No. 262 of December 28, 2005, which provides, among other things, that the principles on the identification and functions of the person responsible for the proceeding, on participation in the proceeding, and on access to administrative documents contained in Law No. 241 of August 7, 1990, and subsequent amendments, apply to the Bank of Italy's proceedings aimed at the issuance of individual measures, insofar as compatible, and establishes that the Bank of Italy regulates with its own regulations the application of the principles provided for in the same article, indicating cases of necessity and urgency or reasons of confidentiality for which derogation is permitted; Having seen Article 38 of the Presidential Decree of December 28, 2000, No. 445, which regulates the methods of sending and signing applications and declarations to be submitted to public administration; Having seen Article 65, paragraph 1, letter c), of Legislative Decree No. 82 of March 7, 2005, regarding the conditions for the validity of applications transmitted to public administration via telematics; Having seen the Regulation concerning the identification of the deadlines and organizational units responsible for administrative proceedings and procedural phases within the competence of the Bank of Italy and the Italian Financial Intelligence Unit, issued by the Bank of Italy's measure of July 21, 2021 (hereinafter, Regulation on Administrative Proceedings), and in particular Article 3 which provides that for administrative proceedings initiated by a party, the application must be drawn up in the forms and ways established by current legislation and must be accompanied by the necessary documentation, as well as Article 16 relating to "common procedures" between the Bank of Italy and the European Central Bank; Having seen Council Regulation (EU) No. 1024/2013 of October 15, 2013 (SSM Regulation), which attributes specific tasks to the European Central Bank regarding prudential supervision policies for credit institutions; Having seen ECB Regulation (EU) No. 468/2014 of April 16, 2014 (SSM Framework Regulation), which establishes the cooperation framework within the Single Supervisory Mechanism (SSM) between the European Central Bank and competent national authorities and designated national authorities;

3 Having seen Bank of Italy Circular No. 285 of December 17, 2013, and subsequent amendments, concerning Supervisory Provisions for Banks; Considering that the European Central Bank has implemented the so-called "IMAS Portal" (or "IMAS Portal"), an online platform that supports the submission of applications, notifications, and the exchange of information between supervisory authorities and supervised entities in relation to proceedings within the competence of the European Central Bank; Considering that the use, also for applications and notifications to be addressed to the Bank of Italy in relation to proceedings contemplated within the Single Supervisory Mechanism, can increase the efficiency and economy of the action of the Bank of Italy and the SSM; Considering that for the assessment of the suitability of key personnel and heads of main corporate functions of significant supervised entities, pursuant to Article 26 of the TUB, the IMAS Portal has been operational since January 27, 2021; Considering that the IMAS Portal presents characteristics of simplicity of access such as not to impose excessive burdens on subjects wishing to submit applications or notifications or the corresponding documentation to the Bank of Italy in relation to the procedures and proceedings falling within the competence of the European Central Bank; adopts the following measure: Art. 1 (Definitions and Acronyms)

1. For the purposes of this Regulation, the following are understood to be: a) Less significant supervised entities: the entities referred to in Article 2, No. 7 of the SSM Framework Regulation established in Italy; b) Significant supervised entities: the entities referred to in Article 2, No. 16 of the SSM Framework Regulation established in Italy; c) Authorization for banking activity: the common procedure regulated by Article 14 of the TUB, Articles 4 and 14 of the SSM Regulation, Articles 73 to 78 of the SSM Framework Regulation, and Circular 285, Part One, Title I, Chapter 1; d) Voluntary revocation of authorization for banking activity: the common procedure regulated by Article 14 of the TUB, Articles 4 and 14 of the SSM Regulation, Articles 80 to 83 of the SSM Framework Regulation, and Circular 285, Part One, Title I, Chapter 1, in cases where it is initiated upon application by a party; e) Acquisition of qualified participations: the common procedure regulated by Article 19, Articles 4 and 15 of the SSM Regulation, Articles 85 to 87 of the SSM Framework Regulation, Title II of Bank of Italy Circular No. 229 of April 21, 1999; f) Assessment of the suitability of key personnel and heads of main corporate functions: the procedure regulated by Article 26 of the TUB, Article 23 of the Decree of the Ministry of Economy and Finance of November 23, 2020, No. 169, the Bank of Italy Measure of May 4, 2021, Article 4 of the SSM Regulation, Article 93 of the SSM Framework Regulation; g) Procedures regarding the right of establishment and the free provision of services: the procedures provided for in Article 15 of the TUB, Chapters 5 and 6, Title One, Part One, of Circular 285, and Title Three of Part Two of the SSM Framework Regulation, regarding the right of establishment and the free provision of services by a significant or less significant supervised entity in a Member State of the European Union, which is required to give prior communication (notification) to the Bank of Italy; h) IMAS Portal or IMAS Portal (hereinafter also Portal): the ECB's online portal, reachable also via the address available on the Bank of Italy's website, through which significant and less significant supervised entities and third parties can transmit applications, notifications, information, or documents relating to the supervisory proceedings and procedures referred to in Article 2, monitor their status, and exchange information with the Bank of Italy or the European Central Bank. Art. 2 (Scope of Application)
2. This Regulation applies to administrative proceedings and procedures regarding: a) authorization to conduct banking activities; b) voluntary revocation of authorization to conduct banking activities; c) acquisition of qualified participations in significant and less significant supervised entities; d) the right of establishment and the free provision of services by significant and less significant supervised entities; e) the assessment of the suitability of key personnel and heads of main corporate functions of significant supervised entities. Art. 3 (Methods of Drafting and Transmitting Applications and Notifications)
3. Pursuant to Article 3 of the Regulation on Administrative Proceedings, supervised entities and third parties transmit to the Bank of Italy the applications and notifications, as well as the related documentation, aimed at initiating the proceedings and procedures referred to in Article 2, as well as any subsequent integrations, through the IMAS Portal.
4. The transmission referred to in paragraph 1 is perfected with the completion of the upload and sending process provided for by the Portal, according to the technical instructions indicated therein.
5. Transmission through the Portal leaves unaffected any assessment regarding the regularity and completeness of the application or notification or the related documentation. Art. 4 (Entry into Force)
6. This Regulation enters into force the day following its publication in the Official Gazette and applies to applications and notifications transmitted starting from January 15, 2022.
7. This Regulation does not apply to the transmission of documents or declarations relating to proceedings and procedures that were already initiated as of January 15, 2022.