ITALY – Pension regulator Covip has expressed satisfaction with the government’s new plan to set up an authority for the protection of savers and investors that, contrary to previous hints, will not see Covip submerged.

The cabinet’s decision came amid speculation that the new authority would be see a merger of Covip, the Comitato di vigilanza sui fondi pensione, with its insurance counterpart Isvap and market regulator Consob.

But according to the draft of the bill put forward by finance minister Giulio Tremonti, and approved by the cabinet, both Covip and Isvap would remain. The draft is shortly due to be presented to parliament.

“It is what we had asked in parliament”, commented Covip’s director of supervision and research Ambrogio Rinaldi, referring to remarks made by Covip president Lucio Francario in a hearing at the senate last week.

The new authority would aim at watching over every aspect of the Italian financial world and, for the first time, it would also be able to supervise bonds issued by banks.

Covip, the Banca d’Italia, the antitrust authority and Isvap would be required to meet the head of the new authority, nicknamed “Super-Consob”, at least once a month to exchange information and improve co-ordination, Rinaldi said.

In a bid to achieve ‘360-degree’ protection, the cabinet also agreed that the antitrust authority would share with Banca d’ Italia the responsibility of regulating banking competition. The central bank would still look after stability.

The bill also includes an ‘unprecedented system of indemnity for savers’ and envisages higher penalties for ‘crimes against public economy’.

Welfare minister Roberto Maroni was reported to be not entirely happy with the bill and hinted that further changes might occur during the parliamentary debate.

Maroni, the government news agency AGI said, would also meet the general secretaries of the three leading unions, Cigl, Confederazione italiana generale del lavoro, Cisl, Confererazione italiana sindacati lavoratori, and Uil, Unione italiana del lavoro, next week to discuss the pension reform.

Uil spokesman Antonio Passaro however said in an interview that no official summon had so far been issued.

“ We only have heard about it the_meeting through the press. What it is known for sure is that the three unions will meet in Rome next Tuesday to discuss the current economic and politic situation. It is not going to focus on pensions, but inevitably, the issue will come up” he said.


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