ITALY Law and Practice Contributed by: Emidio Cacciapuoti, Giorgio Bobba and Davide Massiglia, ADVANT Nctm
3.3.5 Rules Concerning Pre-Marketing of Retail Funds Currently, there is no pre-marketing legislation applicable to the pre-marketing of retail funds in Italy (since the pre-marketing regime is only applicable vis-à-vis professional investors). 3.3.6 Rules Concerning Marketing of Retail Funds Please see 3.2.3 Restrictions on Investors . 3.3.7 Marketing of Retail Funds Please see 3.2.3 Restrictions on Investors . 3.3.8 Marketing Authorisation/Notification Process Italian AIFMs willing to market a retail AIF (either Italian or EU) must submit advance notification to CONSOB, and can start marketing once the relevant no-objection communication has been issued by CONSOB, provided that the relevant management rules have received the prior approval of the Bank of Italy (see 2.3.4 Regula- tory Approval Process ). The notification must include the rules governing the AIF, the offering document, and information requested by Arti - cle 43 of the UFA, such as the identity of the custodian, the description of the AIF (including information on the term of the AIF, the invest - ment policy, the fees’ level and whether the AIF accumulates or distributes the proceeds) and the other documentation listed under Annex III or IV of the AIFMD. The process takes around 20 days to be completed. 3.3.9 Post-Marketing Ongoing Requirements Amendments to the management rules of retail funds are subject to the prior approval of the Bank of Italy. 3.3.10 Investor Protection Rules Please see 2.3.10 Investor Protection Rules .
• in respect of which the maximum potential loss that the fund may incur is limited to the consideration paid for the relevant purchase/ subscription, with the exception of certain financial derivatives. While managing the relevant retail fund, the fol - lowing is not permitted: • to grant loans other than those provided for in respect of forward transactions in financial instruments; • to sell short financial instruments (without prejudice to certain specific provisions with regard to limits on taking short positions in financial derivative instruments); • to invest in financial instruments issued by the same fund manager managing the fund; • to purchase precious metals and stones or certificates representing them; or • to invest in assets directly or indirectly trans - ferred or conferred by a shareholder holding qualified shareholdings, by a director, gen - eral manager or statutory auditor of the fund manager, or by a company of the relevant group, nor to sell or otherwise dispose of such assets directly or indirectly to directors, statutory auditors or the general manager of the fund manager. 3.3.2 Requirements for Non-Local Service Providers Please see 2.3.2 Requirements for Non-local Service Providers . 3.3.3 Local Regulatory Requirements for Non- Local Managers Please see 2.3.3 Local Regulatory Require- ments for Non-local Managers . 3.3.4 Regulatory Approval Process Please see 2.3.4 Regulatory Approval Process .
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