Transparency rules for banking and financial services

To choose the most convenient loan, the most affordable current account, the most profitable deposit, or the most suitable card, you need information that is clear, comprehensive and comparable. Transparency rules in the banking and financial sector oblige banks and other intermediaries to provide such information. Being aware of the obligations imposed on intermediaries can help you make informed choices and assert your rights.

Not only banks offer services such as loans, payment cards and other payment solutions. For simplicity, we will use the term intermediaries to refer to all entities subject to transparency rules — including banks, electronic money institutions (EMIs), payment institutions (PIs), Poste Italiane (for BancoPosta services), financial companies, and other regulated entities.

How transparency and fair conduct rules provide protection

Transparency rules require those offering banking and financial services - including loans, current accounts, deposits, and payment cards - to:

  • consider your interests, goals and individual characteristics, including your level of financial knowledge;
  • inform you of the features, costs and risks of services before you sign a contract, through advertisements and pre-contractual documents;
  • include all applicable fees and economic terms in the contract;
  • keep you updated on fees and contractual conditions after the contract has been signed;
  • respond to complaints in a prompt and thorough manner;
  • implement procedures to ensure compliance with these rules, such as internal controls.

These rules are designed to help you identify and choose the products and services best suited to your needs.

Who must apply these rules

The following entities are required to comply with transparency rules:

  • banks;
  • financial companies under Article 106 of the Consolidated Banking Law;
  • loan guarantee schemes
  • payment institutions (PIs);
  • electronic money institutions (EMIs);
  • Poste Italiane, for Bancoposta operations;
  • credit servicers and purchasers of non-performing loans;
  • credit brokers, financial agents and financial advisors.

Who is protected

Some rules protect all customers of financial intermediaries, while others apply only to consumers or retail clients.

You are considered a consumer if you purchase a product or service for purposes unrelated to a business, commercial, artisanal or professional activity. For example, a tobacconist is a consumer when buying an internet subscription for their home, but not if it is for their shop.

Retail clients include consumers, artisans, professionals, non-profit organisations and micro-enterprises — that is, businesses with fewer than ten employees or with an annual turnover or total balance sheet not exceeding EUR 2 million.

Services covered by transparency rules

The transparency rules apply to a wide range of banking and financial operations and services, including:

  • deposits and certificates of deposit;
  • payment services and operations, such as credit, debit and prepaid cards, ATM withdrawals and deposits, the issue and management of payment instruments, as well as collection and payment services;
  • payment accounts, including current accounts and basic payment accounts;
  • consumer credit, but only when the loan amount ranges from €200 to €75,000 and involves the payment of interest or other charges. This includes personal loans, loans linked to the purchase of a specific product or service, and salary- or pension-backed loans;
  • mortgage credit to consumers;
  • financing services, such as mortgages, overdraft facilities, bank advances, guarantees, invoice discounting, financial leasing and factoring;
  • Bancoposta services;
  • guarantees such as sureties, pledges, mortgages on real estate and registered movable property;
  • the purchase and management of non-performing loans;
  • the custody and administration of financial instruments.

Who ensures compliance

Banca d'Italia is responsible for supervising compliance with the transparency and fairness rules governing banking and financial services. If violations are detected, Banca d'Italia has the authority to stop the irregular conduct and require the intermediary to reimburse any amounts unduly charged to customers.

Important

Investment services — such as the purchase and sale of shares and bonds — are subject to specific transparency rules governed by the Consolidated Law on Finance (TUF). Compliance with these rules is monitored by Consob, the Italian authority responsible for supervising financial markets.

The collection of savings by Poste Italiane on behalf of Cassa Depositi e Prestiti - including savings books and government-guaranteed postal savings bonds - is regulated by the Ministry of Economy and Finance Decree dated 5 October 2020.

Where the transparency rules are set out

Transparency rules for banking and financial services are set out in Title VI of the Consolidated Law on Banking (Testo unico bancario, TUB), in various resolutions issued by the Interministerial Committee for Credit and Savings (CICR), and in a specific regulation issued by Banca d'Italia, known as the Transparency Provisions.

Intermediaries must also comply with other transparency rules, such as those related to investment services and insurance products, the Consumer Code and payment services.

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