Italy towards a fintech sandbox

The budget committee of the Italian Chamber of Deputies approved - in the context of the discussion on the annual Budget Law - an amendment focused on fintech. The law will be approved by the Chamber of Deputies and then by the Senate in the current month. The amendment, proposed by MP Sebastiano Barbanti as first signer, is the outcome of an intense debate carried out before the Chamber of Deputies in the last months by means of ad hoc auditions of key stakeholders on the role of fintech for the Italian economy.

Here follow the main measures approved by the budget committee:

• Italian "sandbox" - within 90 days starting from the entry into force of the Budget Law the Ministry of Economy and Finance ("MEF") after a consultation with the Bank of Italy and the National Commission for Companies and the Stock Exchange ("CONSOB") will issue a decree that will allow fintech companies for 36 months to offer their services being subject to a "light" regulatory regime;
• Annual Report on Fintech - the Bank of Italy after a consultation with CONSOB will publish an annual report on Fintech to analyze the relevant legislative framework and to propose amendments to it in order to foster the Fintech Market in the Country;
• Regulatory Fintech Hub - within 60 days from the entry into force of the budget law the MEF will organize a Regulatory Fintech Hub composed by 8 members 3 appointed by the Prime Minister having heard the MEF and the Ministry of Economic Development, 1 by Bank of Italy, 1 by CONSOB, 1 by the Supervisory Institute for Insurance Companies (IVASS), 1 by the Agency for Digital Italy and 1 by the Italian Data Protection Authority. The Fintech Regulatory Hub will analyze the market trends and propose the legislative measures needed to foster the Fintech market, protect customers and preserve the financial stability;
• National Fintech Institute - the institute will coordinate the initiatives devoted to Fintech in the Country and in particular the cooperation between the Regulatory Fintech Hub and the market players;
• Tax Incentives for startups and innovative SMEs - the amendment introduces several tax incentives to foster the financing of startups and innovative SMEs operating in Italy.

The above described legislative measures constitute another important step in making Italy an attractive Country for fintech companies. Such measures follow the "Fintech Channel" recently launched by the Bank of Italy and the opening of the Fintech District in Milan and demonstrate the attention paid by the Parliament and regulatory authorities to the development of a Fintech market in the Country.