Transparency and competitiveness: the new Supervisory Provisions for NPL Managers

Edited by Stefano Padovani, Fabio Coco and Loris Cottoni for Bebankers

On February 13, the Bank of Italy published on its website the supervisory provisions for the transposition of Directive (EU) 2021/2167 (so-called Secondary Market Directive - “SMD”, implemented in Italian law by Legislative Decree 116/2024) on buyers and managers of impaired loans, which contain in particular the rules for the authorization and conduct of business by managers of non-performing loans.

The main objective of the aforementioned supervisory provisions is to ensure that the managers (a new figure of supervised entity introduced with the SMD) registered in the new register under Article 114.5 of the TUB operate in a competitive, prudent and transparent manner. The supervisory provisions focus on five key pillars:

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