Regulatory Alerts2011-04-07
Added · Updated
Communications - Assignment of the Fifth of Salary or Pension and Similar Operations (CQS)
The Bank of Italy reminds intermediaries operating in the assignment of the fifth of salary or pension (CQS) sector to strictly comply with existing regulations and align with new consumer credit rules by June 1, 2011. Intermediaries are required to rationalize distribution networks, ensure product coherence with client financial conditions, correctly distinguish between upfront and recurring commissions, and establish rigorous procedures for reimbursing unearned commissions upon early repayment. The document mandates adherence to economic accrual principles for accounting, adequate provisions for potential refunds, and active internal control functions to verify compliance and manage legal and reputational risks.