Italy

Italian corporate bonds – tighter limits

The first piece of Italian legislation aimed at protecting investors (and, in particular, retail investors) in the wake of the Cirio and Parmalat scandals is contained in Legislative Decree Number 310 of 30 December 2004 (Decree Number 310), which came into force in January 2005. The new legislation has tightened the existing limits on the aggregate principal amount of bonds that may be issued by Italian corporate issuers, although banks and other financial institutions will not be affected, and has widened the circumstances in which a CONSOB approved prospectus has to be produced.