Arbitration for financial disputes

With Resolution no. 19602 of 4 May 2016, Consob approved the introduction of the Arbitrator for Financial Disputes (hereinafter, “ACF” or “Arbitrator”) and adopted the Regulation implementing article 2, paragraphs 5-bis and 5-ter, of legislative decree no. 179 of 8 October 2007.

This new out-of-court dispute resolution system is characterized by the mandatory adhesion of intermediaries and the decision-making nature of the procedure. The goal is to provide an effective tool for the direct protection of investors’ interests. Access to the Arbitrator is completely free for the investor and there are reduced deadlines for reaching a decision (90 days from the completion of the file containing the appeal, deductions and documentation produced by the parties).

Conditions for access to the ACF are that the customer-investor has previously submitted a complaint to the intermediary and that the arbitration procedure is initiated within the following twelve months.

The right to appeal to the ACF cannot be waived by the investor and can always be exercised, even in the presence of disputes devolution clauses to other out-of-court settlement bodies contained in the contracts.

Disputes (up to a requested amount of 500,000 euros) relating to the violation of the obligations of information, diligence, correctness and transparency to which intermediaries are required in their relations with investors in the provision of investment and security services and collective asset management. may be submitted to the Arbitrator.

The procedure allows both the investor and the intermediary to represent their reasons, thus ensuring full cross-examination between the parties and ends with a decision by the Arbitrator who, in the event that he accepts the investor’s appeal in whole or in part , may establish for the intermediary the obligation to pay compensation for the damages suffered or the expenses incurred for the performance of the acts deemed necessary. The decision of the board is not binding on the investor who can still appeal to the judicial authority.

The website to refer to when contacting the ACF is the following: www.acf.consob.it