ITALY Law and Practice Contributed by: Emidio Cacciapuoti, Giorgio Bobba and Davide Massiglia, ADVANT Nctm
subscribe units of a reserved AIF with no mini - mum commitment) with the concept of “person - nel”, which is defined as “employees and those who in any case operate on the basis of relation - ships that determine their inclusion in the com - pany organisation, even in a form other than a
• investment in a single real estate asset must not exceed 20% of the total assets of the fund; and • investment in credits versus a single coun - terparty must not exceed 10% of the total assets of the fund. 2.3.2 Requirements for Non-Local Service Providers Non-local service providers are not subject to regulation/registration requirements to the extent that they do not carry out an activity that is subject to the authorisation of the competent supervisory authorities. By way of example, and with no limitation, a service provider willing to provide services related to the compliance func - tion or anti-money laundering is not subject to any specific requirement, while a custodian (in order to be appointed as custodian to an Italian AIF) or a risk manager (in order to be appointed as risk manager to an Italian AIFM) is subject to the applicable regulation and will be regulated and subject to supervisory activity in its home country. 2.3.3 Local Regulatory Requirements for Non- Local Managers A distinction is drawn between a non-local man - ager managing AIFs in Italy through the estab - lishment of a branch ( sede secondaria ) and a non-local manager managing AIFs in Italy under the freedom to provide services regime. In the first option, the branch must comply with the regulatory provisions applicable to Italian AIFMs when dealing with investors and aimed at safeguarding investors’ interests (including pro - visions on conflicts of interest), and must com - ply with a series of reporting/disclosure duties with the Italian supervisory authorities, such as submitting an annual report on how the relevant activity has been carried out, the annual report
subordinate working relationship”. 2.3 Regulatory Environment 2.3.1 Regulatory Regime
Reserved closed-ended AIFs are not subject to any investment limitations, except for the maxi - mum amount of employable financial leverage (as calculated according to EU Delegated Regu - lation 231/2013) applicable to those funds that are allowed to provide finance to third parties using the funds’ assets (so-called credit funds) equal to 1.5 (provided that such AIFs may be granted financing only by banks and authorised financial intermediaries). Non-reserved open-ended AIFs are subject to the investment limitations provided with respect to UCITS funds. Non-reserved closed-ended AIFs are subject to certain investment limitations, such as pro - hibitions on selling short financial instruments, investing in financial instruments issued by the AIFM managing the fund, and investing in assets directly or indirectly transferred or conferred by a shareholder holding qualified shareholdings, as well as by a director, general manager or statu - tory auditor of the AIFM. In addition: • investment in unlisted financial instruments of the same issuer and in parts of the same undertaking for collective investment must not exceed 20% of the total assets of the fund;
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