Launch of Public Consultation

The Central Bank of the Republic of San Marino announces the initiation of a public consultation regarding the draft “Regulations on Consolidated Financial Statements supplementing Regulation No. 2016-02 and Circular No. 2017-03.”

This measure aims to introduce, starting from the 2024 fiscal year, an obligation for authorized entities (excluding insurance companies) to prepare and approve consolidated financial statements when acting as a parent company. These consolidated financial statements must be prepared in accordance with the frameworks and criteria set forth in the attached regulation.

The regulation serves to both complete the transposition of Directive 86/635/EEC and its associated measures, and to implement Articles 29, 30, and 53 of the Financial Services Law (LISF), taking into account the amendments introduced by Article 3 of Ministerial Decree No. 19/2023.

The effective date of January 1, 2024, has been selected not only as the commencement of the new financial year but also coincides with the implementation of the new taxonomy for credit exposures, recently established in accordance with European standards.

January 1, 2024, which has been designated as the effective date, marks not only the commencement of the new fiscal year but also the implementation date of the newly introduced taxonomy for credit exposures, aligned with European standards.

In summary, the parent companies will be required to:

• approve, by resolution of its Board of Directors, the documentation pertaining to the consolidated financial statements (balance sheet, income statement, explanatory notes, consolidated management report, and consolidated audit report) by June 30 following the end of the fiscal year;

• submit the documentation mentioned in the preceding paragraph to the Office of Economic Activities within 30 days of approval;

• publish on its website, within 30 days of approval and not prior to the publication of the financial statements, the financial documentation, which includes the management report, the financial statements and the supplementary note prepared in accordance with consolidation criteria, and the consolidated audit report;
• submit the consolidated financial report to the Central Bank by July 15 following the reference date (the first submission is due on July 15, 2025).

The consultation period will conclude on November 27 of this year.

Any contributions to the consultation may be submitted to the following email address: dipartimento.vigilanza@bcsm.sm, with the subject line: “Consultation on the Consolidated Financial Statements Regulation.”