REGULATOR APPROVES UNIPOL-FONDIARIA MERGER

The complex rescue-merger between Italy-based Unipol and locally based peer Fondiaria-SAI has been approved by the Italian insurance watchdog IVASS. However, the regulator said that it would be keeping close watch on the new company's governance and risk management. it has also sent a letter to Unipol detailing IVASS's requests for improved control procedures. The approval has been somewhat overshadowed by the announcement earlier this month that Salvatore Ligresti, other family members and former Fondiaria-SAI senior executives had been arrested by the Italian tax police force on charges of false accounting and market manipulation. It has been alleged by the Guardia di Finanza that a €600m hole in the company's reserves was not disclosed to the market. Mr Ligresti is now under house arrest.