The regulation of transactions with Related Parties and Connected Subjects, which is contained in Bank of Italy Circular no. 285 of 17 December 2013 as modified and integrated (Part Three, Chapter 11), aims to control the risk that the closeness of some subjects to centres of decision-making of a bank may compromise the impartiality and objectivity of decisions relating to the granting of loans and to other transactions in their regard, with possible distortions in the resource allocation process, exposure of the bank to risks which are not adequately measured or controlled, and potential harm to depositors and shareholders.
To this end, the Supervisory Authority orders Banks and Parent Companies, in the case of banking groups, to equip themselves with a system of controls to manage such situations.
The Group Regulation for the management of transactions with Connected Subjects therefore aims to regulate the identification, approval and execution of Transactions with Connected Subjects undertaken by Cassa Centrale Banca - Credito Cooperativo Italiano S.p.A. and by Companies of the Banking Group, as well as the organisational arrangements and the system of internal controls which the Group adopts in order to preserve the integrity of decision-making processes in Transactions with Connected Subjects, guaranteeing constant respect of the prudential limits and decision-making processes established by the Supervisory Orders.
At least every three years the Parent company approves and reviews the internal policies on controls over risky activities and over conflicts of interest in regard to Connected Subjects.
The current version of the Regulation, which was approved by the Board of Directors on 14 November 2024, comes into force as from 1 January 2025.