Bank of Italy Wants U.K. Banks to Inform Italy Clients on Brexit
Bank of Italy Wants U.K. Banks to Inform Italy Clients on Brexit
(Bloomberg) -- Italy’s central bank urged all British financial institutions operating in the country to inform their clients about how they intend to manage existing relationships following Brexit.
The Rome-based institute called for prompt action from “all banks, payment institutions and e-money institutions based in the United Kingdom that currently provide services in Italy via branches, under the freedom to provide services, or by means of a network of agents,” the Bank of Italy said in a statement.
| For more: The Plan to Avert Banking Chaos In a No-Deal Brexit: QuickTake British and U.S. Banks Said to Be Deeply Divided on Brexit Ties Italy Sets Up Measures for Financial Stability If No-Deal Brexit |
The central bank asked the institutions to “to send their Italian customers detailed and personalized information about the impact of Brexit” including:
- Effects to existing contracts
- Consequences of any potential corporate restructuring
- Possibility of recourse to an alternative dispute resolution mechanism
- Effects on deposit insurance guarantee coverage
The central bank also told the institutions that they need to publish such information on their websites “at least in Italian and English.”
To contact the reporter on this story: Lorenzo Totaro in Rome at ltotaro@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Ross Larsen
©2019 Bloomberg L.P.