A new decree expands the types of entities allowed to provide loans beyond banks and financial intermediaries.

Introduction -

The Italian Government enacted law decree No. 91, of June 24, 2014, published on the Italian Official Gazette No. 144 of June 24, 2014 (the Decree) with new measures aimed, inter alia, at supporting access to finance. The Decree entered into force on June 25th and has to be converted into law within 60 days of its publication. With this Decree, the Italian Government, for the first time, introduces significant changes to the banking sector, allowing players other than banks and financial intermediaries to carry out direct lending activity on the primary market, rather than simply purchasing receivables arising out of loans originated by licensed banks or financial intermediaries.

New entities admitted to direct lending -

Before enactment of the Decree, direct lending was reserved to licensed banks and financial intermediaries. The Decree amended the legal framework applicable to direct lending, to include collective investment undertakings, Italian licensed insurance companies, Sace S.p.A. and Italian securitization vehicles incorporated pursuant to law No. 130 of April 30, 1999, (Italian SPVs) among the entities allowed to carry out direct lending.