30 Mar 2005 “About the State-of-art of the Decree-Law for the Protection of Savings”, AIAF Nr.54, March 2005
The article “About the state-of-art of the Decree-Law for the Protection of Savings” by Daniela Carosio, SVI Senior Partner, was published in the AIAF online review Nr. 54 as of March 2005.
The Decree-Law “Provisions for the protection of savings and the regulation of the financial markets”, presented by united Committees VI (Finances) and X (Productive Activities) of Italian Senate and the Chamber of Deputies, was finally approved on March 3, 2005 by the Lower House, following more than a year of controversies and delays, and will now approach the Senate for further approval.
In the aftermath of the Parmalat scandal the Decree-Law was designed to strengthen companies’ internal and public controls for the protection of savings, enhance the transparency of markets and foster cooperation between authorities by establishing rules to govern their coordination.
The quality of financial regulation is assessed by its effectiveness in preventing improper conduct, protecting investors against uninformed risk-taking, and averting systemic crises. Together with many appreciable, necessary changes, the new rules also have several problematic points.
Professor Daniela Carosio discusses the content of the Decree-Law presented, pointing out some of the main criticism moved towards it by experts. The author gives, in the end, some final considerations on topics such as conflicts of interest and the role of Independent Directors.