The Provisions for the Prudential Supervision of Banks Bank of Italy Circular No. 263/2006, ninth update of 12 December 2011 set forth provisions governing Risk assets and conflicts of interest in relation to Connected Parties (Title V, Chapter 5), which aim to safeguard against the risk that the proximity of certain parties to the Banks decision-making centres may compromise the objectivity and impartiality of decisions regarding the granting of loans and other transactions in relation to such parties, with possible distortions of the resource allocation process, exposure of the bank to risks subject to inadequate measurement or oversight and potential damages for depositholders and shareholders.
Banca Generali approves and revises, at least every three years, its internal policies governing controls of risk assets and conflicts of interest in relation to Connected Parties.
This document is integrated with:
- the Procedure for Related Party and Connected Party Transactions and Transactions of Greater Importance adopted by the Bank in accordance with Consob Regulation No. 17221/2010 and the Bank of Italys Provisions concerning risk assets and conflicts of interest with Connected Parties;
- the Conflicts of Interest Policy adopted by the Bank in accordance with the joint Bank of Italy/Consob Regulation of 29 October 2007, issued pursuant to Article 6, paragraph 2-bis, of the Consolidation Law on Finance;
- the Equity Investment Management Policy adopted by the Bank in accordance with the Bank of Italys Provisions governing risk assets and conflicts of interest with Connected Parties;
- other internal regulations and policies adopted by Banca Generali and in effect from time to time.