The Italian Ministry of Economy and Finance launched a public consultation asking for the stakeholders' views on the envisaged amendment of the eligibility criteria investors have to meet for subscribing Italian reserved AIFs. The amendment would allow a wider audience of retail investors to access this type of AIFs.
What's new?
On 4 June 2020 the Italian Ministry of Economy and Finance ("MEF") issued for public consultation a short note describing proposed amendments (the "Draft Amendments") to Article 14 of Ministerial Decree No. 30 of 5 March 2015 – setting out general requirements to be met by UCIs – implementing Article 39 of the Italian Consolidated Financial Act. The purpose of the Draft Amendments, proposing the reduction of the minimum investment amount set-out for non-professional investors to subscribe Italian reserved AIFs, is to channel private savings towards illiquid assets, fostering the financing of Italian companies and the economic recovery.
Content of the Draft Amendments
Pursuant to the Draft Amendments, the possibility to subscribe Italian reserved AIFs would be extended (in addition to professional investors and non-professional investors who invest, directly or in the context of the provision of the portfolio management service, a minimum initial non-divisible amount of EUR 500,000) also to:
- non-professional investors who subscribe or purchase units or shares of the AIF for a minimum initial non-divisible amount of EUR 100,000, provided that:
- such amount does not exceed, at the time of subscription or purchase, 10% of their financial portfolio (the latter to be intended as the total value of the financial instruments, including bank deposits, and insurance investment products, with the same intermediary or asset manager); and
- investments are made in the context of the provision of the investment advice service.
- authorised entities subscribing or purchasing units or shares of the AIF for an initial amount of not less than EUR 100,000, on behalf of non-professional investors, in the context of the provision of the portfolio management service.
Directors and employees of asset management companies of reserved AIFs could subscribe units for amounts lower than those indicated above.
Also, public entities which do not match the requirements for being classified as public professional clients pursuant to Ministerial Decree No. 236 of 11 November 2011 could subscribe real estate reserved AIFs, in the specific case set out under paragraph 3 of Article 14 of Ministerial Decree No. 30 of 5 March 2015, for amounts lower than those indicated above.
The MEF asked for comments as to whether:
- either the definition of financial portfolio is adequate or whether instead the extension of the scope of such definition, by referring to several intermediaries or asset managers and giving the investors the possibility to certify their financial position, would increase the management complexity (also for the necessary updates) or would be easily manageable;
- either the minimum initial investment amount under 1) would be useful and appropriate or setting out a concentration limit only, without a "minimum entry ticket", would be preferred.
- the provision of a minimum investment amount of EUR 100,000 in the context of the portfolio management service would be adequate and sufficient.
Next steps
The public consultation runs until 3 July 2020.
The Draft Amendments are available here (in Italian only).
[View source.]
