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Italy: Legislative rules for business operations after “no-deal Brexit”

Italy: Business operations after “no-deal Brexit”

Italy has enacted a regime for UK entities currently conducting business operations in Italy and for Italian entities conducting business in the UK, in the event the UK leaves the EU without a deal (a “no-deal Brexit”).

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The rules will apply to regulate and allow for the continuity of banking, financial, and insurance services provided by UK entities operating in Italy and for Italian entities operating in the UK.

The Italian Parliament in May 2019 converted a “law decree” (Decreto-legge no. 22 of 25 March 2019) into law (Legge no. 41 (Italian)), and the legislation was published in the official gazette on 24 May 2019.

In general, the new regime provides:

  • An 18-month transition period starting from the date of the UK’s withdrawal from the EU if pursuant to a no-deal Brexit. During the transition period, UK entities may continue to operate in Italy to the extent allowed by the new rules, and Italian entities may continue operating in the UK during the transition period.
  • To take advantage of the transition period, UK entities must notify the Bank of Italy at least three business days before the date of withdrawal under a no-deal Brexit.
  • UK insurance undertakings operating in Italy may continue their business during the transition period, but must cease operations within six months of the no-deal Brexit date of withdrawal.
  • To operate in Italy after the transition period, UK banks, investment firms, and others must within six months of the Brexit withdrawal date apply for the appropriate authorization.
  • Italian banks, investment firms, and others may continue to operate in the UK during the transition period, provided notice is given to the appropriate supervisory authorities, and after the transition period, application must be made to the competent authorities for authorization.
  • Italian insurance or reinsurance entities may continue to operate in the UK pursuant to UK rules after a no-deal Brexit.


Read a May 2019 report [PDF 2.9 MB] prepared by the KPMG member firm in Italy

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