Italian Securities Authority Extends Deadline for Investigations

In a recent development, Italy’s financial regulator, Consob, has announced that it will grant an additional 30-day extension upon request to individuals under investigation. This move aims to provide more time for the accused to exercise their right to defend themselves and cooperate with the investigation.

Requested Rights During Investigation

Individuals have the following rights during the investigation process:

• Request documents and information: Individuals can request relevant documents and information related to the investigation.
• Provide statements or testimonies: They can provide written statements or give oral testimony as part of the investigation.
• Carry out on-site inspections or other investigation activities: Consob may carry out on-site inspections or other investigation activities, such as forensic analysis, at the request of the individual.
• Obtain information from third parties: The authority can also obtain information from third-party sources, including witnesses and experts.

International Cooperation

Consob has established cooperation mechanisms with foreign securities authorities through various memoranda of understanding (MOUs). These agreements enable:

• Exchange of information: The sharing of information between authorities to facilitate investigations.
• Provision of documents: The exchange of relevant documents related to the investigation.
• Joint investigation activities: Consob and foreign authorities can work together on joint investigation activities.

Consob has signed several MOUs, including:

• OICV-IOSCO multilateral memorandum of understanding
• ESMA multilateral memorandum of understanding
• Consob-SEC memorandum of understanding

These agreements aim to facilitate cooperation in the enforcement of securities laws, including:

• Market abuse prohibition
• Offer and sale of securities
• Reporting requirements
• Regulation on financial intermediaries

Consideration of Foreign Findings

In addition, Consob will take into account findings by foreign law enforcement authorities in the course of its investigation. Under Italian law, there is no limitation for Consob to consider such findings.

Commitment to Effective Investigations

The extension of the deadline and cooperation mechanisms demonstrate Consob’s commitment to ensuring effective and efficient investigations while also respecting the rights of individuals under investigation.