The Italian government, led by Minister Giorgetti, has taken steps to reform the existing sanctioning framework under the Consolidated Financial Intermediation Act (TUF) through a preliminary approval of a legislative decree. This reform is described as a vital move to improve the efficiency and effectiveness of the sanctioning system related to financial markets. It seeks to categorize illicit behaviors based on their seriousness and aims to reduce litigation by providing greater guarantees for the subjects involved in the proceedings.

The proposed decree redefines the limits of fines to better align with the severity of violations, especially concerning transparency, the proper delivery of services, and mandatory communications by listed companies. For corporations and entities, penalties now range from €5,000 to €10 million or 5% of their annual turnover, while individuals could face fines between €5,000 and €2 million. Notably, failures in mandatory communications by listed companies incur a minimum fine of €10,000, emphasizing the importance of accountability and transparency in financial reporting.

Overall, this reform is significant as it potentially strengthens regulatory compliance in Italy’s financial markets. The adjustments in sanctioning measures not only intend to deter misconduct but also signal a more structured approach to financial oversight. With enhanced measures, the Italian government aims to foster a more trustworthy financial system, which could ultimately benefit investors and restore public confidence in market operations.