The Commissione Nazionale per le Società e la Borsa, better known as CONSOB, is responsible for regulating the Italian financial markets.
CONSOB – the Commissione Nazionale per le Società e la Borsa is responsible for regulating the Italian financial markets. The Italian regulator has monitored the financial markets for more than four decades. Operating from Rome, CONSOB is headed by four board members and a chairman. The Commissione Nazionale per le Società e la Borsa’s or better known as CONSOB objective is to ensure transparency in the conduct of market participants. Meanwhile, the Italian regulator’s activities are aimed at protecting the investors.
Commissione Nazionale per le Società e la Borsa’s duties
CONSOB is an independent authority, as it drafts its own rules in terms of regulation and operation. The day-to-day duties of the Italian independent authority consist of the following:
- Regulating the provision of investment services and activities of the intermediaries;
- Reporting obligations of the listed entities and public investment appeals;
- Monitoring the market management companies and the conduct of intermediaries or financial advisors;
- Investigating any violations of regulations on insider trading or market abuse;
- Issuing sanctions on listed entities, in case of misconduct;
- Monitoring any anomalous trends in the trading of listed securities;
- Verifying data that is provided to the market by companies seeking investment from the public;
- Checking the information in the accounting documents of listed entities;
- Communicating with operators and investors to provide a more effective service;
- Cooperating with international authorities, such as ESMA, OECD and other foreign organizations.
CONSOB is one of the oldest regulators
The Commissione Nazionale per le Società e la Borsa was established in 1974. After a new legislation that lead to the merger of the functions and jurisdictions of the Italian Ministry of Treasury. The aim was to empower one regulatory body to supervise the securities markets. However, over time the Italian regulator gained more responsibilities. As, for example, in 1991 a new Italian law extended CONSOB’s jurisdiction into securities brokerages audit and insider trading probes.