In 2016 Italy introduced new forms of security, including a pledge on movable goods which would not require physical delivery to the creditor, but would take effect by way of registration in a central repository held by the tax authority (the "Registry of Non-possessory Pledges", or "RNP"). We have covered this step here. The operation of the register was laid out in secondary legislation , which has come into force in August 2021 and mandated the tax authority to put in place the IT system until April 2022, and develop the required technical specifications in the following thirty days.
This new form of security holds large promises for the commodities trade, and other industries which have struggled to take collateral in Italy in the traditional forms of a pledge or special lien. It has such flexibility and potential reach that it may play a role in most types of corporate lending, and impact the process and due diligence for credit analysis and M&A activity going forward.
Please see full publication below for more information.