CONSOB: Italy's stock market regulator

Most financial companies registered in Europe, as we have already learned, are required to comply with the EU Markets in Financial Instruments Directive or MiFID. But usually it does not end with the pan-European regulator, because each country controls its own financial institutions. In this excursus fortrader.ru will focus its attention on the Italian stock regulator - CONSOB.

Regulation of the Italian stock market through CONSOB

• Full name: Italian Commission for the Supervision of the Securities Market and Stock Exchanges
• Title in Italian: Commissione Nazionale per le Societa' e la Borsa
• Abbreviated title: CONSOB
• Subordinate countries: Italy
• Funding: from the state budget
• Degree of trust of tradersmedium
• Official website: www.consob.it

Government structure CONSOB The Italian Stock Exchange is the Italian financial regulator with the function of control and regulation of the organizations and financial processes of the Italian stock exchange. It was founded in 1974, when the financial regulatory and jurisdictional functions assigned to the Ministry of Finance were merged by law. The organization's primary objective is to control over the Italian securities market.

Proving its relevance and effectiveness over the next 10 years CONSOB was endowed with additional powers. So, at first, the organization's responsibilities expanded to control and protect the country's savings, and a couple of years later it became an independent legal entity. In the early 1990s, the power of the organization expanded, and since then it has been controlling the activities of brokerage organizations and companies involved in insider trading.

Duties and powers of the Italian stock regulator

At CONSOB The following responsibilities are assigned:

• regulating the activities of companies in the provision of investment services, preparing reporting requirements for firms whose shares are listed on the free market;
• enrollment in the registers of investment companies, the issuance of permits to operate within stock market;
• Tracking operations of companies in the market, ensuring the transparency of information, its collection and systematization;
• verification of information from market actors regarding public investment and financial reporting.

CONSOB structure and trader confidence

To the Collegiate Body CONSOB includes a chairman and four members; they are appointed by presidential decree on the basis of nominations by the chairman of the Council of Ministers. The position can be held by members for 7 years without renewal of term. The organizational structure is represented by a central Management Committee and 11 faculties with 39 offices. Offices CONSOB are located in Rome and Milan.

Traders' confidence in the organization is average, because the Italian stock market is not one of the central or at least of medium importance. In addition, it should be understood that for traders who do not trade shares of companies posted on Borsa, there is no use for this license.