Regulation No. 2007-01 on Reporting Procedures under Article 68 of Law 165/2005

REGULATION ON REPORTING PROCEDURES
EX ART. 68 LAW 17 NOVEMBER 2005 NO. 165 year 2007 / number 01 (Text in force as of 04/01/2021 – Update V)

INDEX
Article 1 – Subjects entitled to submit reports .................................................................................................................... 3
Article 2 – Subject matter of reports .................................................................................................................................... 3
Article 3 – Formal requirements of reports ..................................................................................................................... 4
Article 4 – Substantive requirements of reports ................................................................................................................ 4
Article 5 – Methods of submitting reports ..................................................................................................................... 4
Article 6 – Verification of reports .................................................................................................................................... 5
Article 7 – Effects of reports ....................................................................................................................................... 5
Article 8 – Rights of the reporter.............................................................................................................................................. 5
Article 9 – Entry into force .................................................................................................................................................... 5
ANNEX A ............................................................................................................................................................................ 6

Article 1 – Subjects entitled to submit reports

1. The following may submit reports pursuant to Art. 68, paragraph 1, of Law 17 November 2005 no. 165 (so-called
   "complaint reports"):
   a) clients of authorized entities, financial promoters, independent financial consultants, and insurance or reinsurance intermediaries; b) legally recognized associations representing the interests of consumers directly or through professionals expressly appointed for this purpose.
2. Reports pursuant to Art. 68, paragraph 1-bis, of Law 17 November 2005 no. 165 (so-called "whistleblowing reports") may be submitted by anyone, including corporate officers and employees
   of the entities listed in letter a) of the previous paragraph 1, who, in cases of complicity in the violation, will benefit from the mitigating circumstances set forth in Article 31, paragraph 3, letters h) and i-quinques), of Law 29 June 2005 no. 96 and subsequent amendments.
3. Pursuant to Art. 68, paragraph 1-quater, of Law 17 November 2005 no. 165, reports made pursuant to the
   previous paragraph:
   a) do not constitute a violation of any restrictions on the communication of data or information deriving from contracts or legislative, statutory, regulatory, or administrative provisions, nor of obligations of confidentiality and professional or official secrecy or banking secrecy pursuant to Article 36 of Law 17 November 2005 no. 165; b) do not entail any type of liability if made in good faith.

Article 2 – Subject matter of reports

1. Complaint reports may concern only alleged non-compliance with the provisions of the
   Law 17 November 2005 no. 165, including those to which the law itself refers and those listed in its annexes, and/or the provisions contained in implementing measures issued by the Supervisory Authority, when such non-compliance results in alleged infringements of rights, or of the interests of consumers, by the economic operators listed in letter a) of the previous Article 1, paragraph 1.
2. Among the complaint reports referred to in the previous paragraph are therefore also those concerning
   errors committed, to the detriment of the reporters, by supervised intermediaries in communications transmitted by them in fulfillment of their obligations under Articles 50 (Central Risk Register) and 51 (Protest Information System) of Law 17 November 2005 no. 165.
3. Whistleblowing reports concern alleged violations of the provisions and regulations referred to in
   the previous paragraph 1 by anyone bound to comply, even personally, in relation to the role exercised or the office held within the ownership, organizational, or governance structures of the economic operators referred to in paragraph 1, when such violations do not infringe upon the legal sphere of the reporter, or the interests of consumers.
4. Pursuant to the previous paragraph, the following may be reported:
   a) violations that have already occurred, of which the reporter has certainty, regardless of their ability to produce, as an attachment, documentation proving the reported violations; b) facts and circumstances, even ongoing, which the reporter presumes could represent violations of the aforementioned provisions and regulations.
5. As a result of the provisions in the previous paragraphs, the reports referred to in Article 68 of Law 17
   November 2005 no. 165 are an important tool to improve, in effectiveness and timeliness, the action of the Supervisory Authority; however, while complaint reports concern compliance with rules on diligence, correctness, and transparency in relations with clients, whistleblowing reports relate to

any other provision of law or supervision in the financial sector, excluding disputes with the reported entity of a commercial nature or concerning the employment relationship.

Article 3 – Formal requirements of reports

1. Reports must be in writing and drafted in Italian or English.
2. Anonymous reports will not be considered.
3. For whistleblowing reports, in order to support reporters in drafting a clear and complete report pursuant to the following article, the use of the form provided in Annex A of this regulation is recommended.

Article 4 – Substantive requirements of reports

1. The minimum mandatory contents of any report are:
   a) identifying data of the reporter (surname, first name, identification code, residential address, telephone number, and email address); b) a clear, precise, and detailed description of the facts that gave rise to the non-compliance and/or violations (references to dates, locations, persons, operations, amounts, etc.); c) date of the report; d) signature of the reporter, including electronic signature where legal conditions are met.
2. In the case of a complaint report submitted by a consumer defense association, for the purposes of the
   previous paragraph, letter a), it is sufficient to state the name of the association itself, unless the obligation to include, for the purposes of letter b) of the same paragraph, the details of at least one client directly affected by the alleged non-compliance reported.
3. In all cases of complaint reports, if the reporting subject possesses documentation
   proving the facts subject to the report, a copy of this must be attached to the report itself. In any case, for the report to be admissible, it must include as an attachment a copy of the correspondence previously held with the Complaints Office, if present at the reported entity, even as proof of the remedy previously attempted but without a satisfactory outcome.
4. In cases of whistleblowing reports submitted by a corporate officer or an employee of the
   same economic operators on which the report falls or to whose corporate officers or employees the facts and circumstances reported are attributed, the report must also contain precise information regarding the role, title, or office held by the reporting subject within the corporate organization at the time of the reported facts.
5. In all cases of whistleblowing reports, if the reporting subject has already reported
   the same facts to another authority, or intends to do so, they are required to provide precise communication of this within the report, as well as regarding any outcomes of such reports.

Article 5 – Methods of submitting reports

1. Complaint reports must be submitted in writing using one of the following alternative methods:
   a) registered electronic or postal mail to the Central Bank of the Republic of San Marino - Supervision Department, Via del Voltone no. 120 – 47890 San Marino; b) hand delivery to the same address specified above, with simultaneous issuance of a receipt.
2. Whistleblowing reports must be submitted in writing using one of the following alternative
   methods:

a) directly at the Supervision Department at the address specified above and by prior appointment, informing the personnel of the Department who will draw up a specific record signed by the reporter; b) hand delivery or by registered postal or electronic mail of the report signed at the bottom (see Annex A); c) sending by email to whistleblowing@bcsm.sm with the report referred to in the previous letter b) attached in electronic format.

Article 6 – Verification of reports

1. The Supervisory Authority proceeds with an initial examination of the facts subject to the report based on the
   indications contained therein and any additional documentation attached, reserving the right to request the reporting subject to provide integrations and clarifications in writing and/or orally.
2. Having verified the relevance of the facts for the purposes of the provisions contained in the Law 17 November 2005 no. 165
   and its implementing measures, the Supervisory Authority, in the case of complaint reports, communicates to the supervised entity the essential contents of the report, assigning a deadline to submit any counter-arguments; in the case of whistleblowing reports, it initiates, where necessary, the appropriate verifications to ascertain the facts and circumstances reported.

Article 7 – Effects of reports

1. The reports, accompanied by any additional information acquired, are evaluated by
   the Supervisory Authority for the purposes of carrying out its institutional functions, including the adoption of measures and other initiatives within its competence.
2. In any case, the composition or judgment of any dispute between the authors of the reports and the supervised entities, subject to complaint reports, falls outside the tasks and powers of the Supervisory Authority.

Article 8 – Rights of the reporter

1. The outcome of the report remains confidential, even vis-à-vis the reporting subject.
2. The Supervisory Authority, upon receipt of each correctly submitted complaint report, sends a
   written communication to the reporting subject acknowledging the report and informing them of the existence, under San Marino legislation, of extrajudicial appeal procedures.
3. In the case of whistleblowing reports, the Supervisory Authority, in compliance with what is provided
   by Art. 68, paragraph 1-ter, of Law 17 November 2005 no. 165, guarantees:
   a) a secure and specific communication channel; b) adequate protection of the reporting subject against retaliatory, discriminatory, or otherwise unfair conduct resulting from the report; c) confidentiality regarding the identity of the reporter and the alleged responsible party for all phases of the procedure, unless consented to by the reporter or when knowledge is indispensable for the defense of the reported party, subject to the rules governing investigations or proceedings initiated by the judicial authority in relation to the facts subject to the report.
4. In any case, all information acquired by the Supervisory Authority in the exercise of its functions
   is subject to official secrecy pursuant to Art. 29 of Law 29 June 2005 no. 96.

Article 9 – Entry into force

1. This Regulation enters into force on 6 February 2007.

ANNEX A
WHISTLEBLOWING REPORT
IDENTIFYING DATA OF THE REPORTER
NAME
SURNAME
ISS / TAX CODE
RESIDENTIAL ADDRESS
EMAIL / TELEPHONE NUMBER for any further contacts DATA AND INFORMATION ON THE REPORTED VIOLATIONS SUPERVISED ENTITY SUBJECT OF THE REPORT OPERATIONAL AREA TO WHICH THE VIOLATIONS ARE REFERABLE (e.g. Credit Area, Securities Area, Payments Area, Internal Controls, Governance Structure, etc.) DATE OR TIME PERIOD OF THE REPORTED FACTS MAIN LOCATION OF THE VIOLATIONS (e.g. Branch, Office, Body, etc.) BRIEF DESCRIPTION OF THE FACTS SUBJECT OF THE REPORT SUPPLEMENTARY ELEMENTS FOR REPORTERS WHO ARE OFFICERS, EMPLOYEES, OR COLLABORATORS OF THE REPORTED ENTITY* ROLE, TITLE, OR OFFICE HELD AT THE TIME OF THE REPORTED FACTS TYPE OF IDENTIFICATION DOCUMENT ATTACHED AS A COPY TO THIS REPORT (e.g. ID Card, Passport, Driver's License) SUPPLEMENTARY ELEMENTS IN CASE OF SUBMISSION OF THE SAME REPORT TO OTHER ENTITIES (e.g. Judicial Authority, A.I.F., police forces, auditors, statutory auditors, internal control functions, etc.) DATE RECIPIENT ENTITY Possible follow-up if known DATE RECIPIENT ENTITY Possible follow-up if known DATE RECIPIENT ENTITY Possible follow-up if known Date: _____________________________________Signature: _______________________________________

• In such cases (insider whistleblowing) a photocopy or scan of the reporter's identification document must be attached to this form. In all cases, any accompanying documentation for the report must also be attached, if available.