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Clifford Chance

Clifford Chance

Briefings

Italy introduces dynamic ranking for banking and capital instruments

1 December 2021

Italy has introduced a dynamic ranking for banking capital instruments by implementing Directive 2019/879/EU (the "BRRD II") into domestic law by means of Legislative Decree No. 193 of 8 November 2021 (the "BRRD II Implementing Decree") approved on 4 November 2021 and published in the Gazzetta Ufficiale on 30 November 2021. The BRRD II Implementing Decree provides that subordinated instruments which do not qualify (or cease to qualify) as own funds items shall rank higher than own funds item (including instruments only partly recognised as own funds items) and lower than senior non-preferred instruments.

Furthermore, the BRRD II Implementing Decree has established a minimum denomination requirement for certain eligible liabilities instruments and the annulment of investment contracts with retail investors concerning such instruments where they do not meet such minimum denomination requirements.

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