Regulatory Alerts2018-01-04
Communications - SIMs and SIM Groups - Amendments to the Prudential Supervision and Large Exposures Framework
This Communication, issued following CONSOB's opinion, amends the regulatory framework for Securities Intermediation Companies (SIMs) and SIM groups to align prudential supervision and large exposure rules with European developments and banking regulations. The updates incorporate the 20th revision of Circular No. 285, introducing early intervention measures, interest rate risk in the banking book requirements, and specific limits for exposures to shadow banking entities. Additionally, the authorization process for contractual netting agreements to mitigate counterparty risk is replaced with a reporting obligation, subject to supervisory review and potential prohibition orders.
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