BCSM Blog

Press Release - MISCELLANEOUS ISSUANCE 2020-01

Written by BCSM | 17 Mar 2020

The Central Bank of the Republic of San Marino announces that, on March 18, 2020, it issued Regulation No. 2020-01, titled “Miscellaneous targeted Interventions for the revision of current supervisory provisions.”

This regulation represents the evolution of the draft regulation (previously) amending Regulations No. 2006-03, No. 2007-02, No. 2007-07, No. 2008-01, No. 2011-03, and No. 2016-02, which underwent a public consultation procedure. It incorporates the contributions received during this process, broadening its scope to include additional, targeted revisions aimed at enhancing regulatory efficiency. These revisions, typical of the category known as "miscellaneous," aim to consolidate, at the normative level, the guidelines and decisions already expressed by the Supervisory Coordination and to address certain requests for simplification raised by the system.

Compared to the previous draft, the issued Regulation not only:

 

  • Adopts the "fit and proper" standard for the representatives and corporate bodies of banks, in line with the guidelines previously outlined in Annex 7 of Regulation 2019-01, taking into account the specificities of the San Marino system,
  • Updates the Central Bank’s regulations in accordance with provisions that do not require implementing rules (so-called self-executing provisions) contained in recent Delegated Decrees transposing EU Directives, but also:

provides greater clarity by integrating the definitional framework of banking regulations ("managerial duties," "deputy director," "strict procedures," "repurchase agreements," etc.), while simultaneously aligning the definition of "company representatives" with those used in other sector regulations, where applicable;

defines the "non-enforceability" inherent to the position of Auditor;

the decision to introduce a new category of judgment independence (a non-standard concept with poorly defined application parameters) has been abandoned in favor of a further strengthening of the existing, substantially compliant independence requirements. In particular, the nine-year term limit for reappointment is extended to directors, and political-institutional roles held in the past two years are considered a disqualifying factor for both directors and statutory auditors;

the temporal sequence between appointments, acceptances, and suitability checks is reorganized, and the distinction between the (autonomous) power to remove banking officers and the (subsidiary) power to declare their forfeiture is clarified. The special suspension procedure for the aforementioned officers is consequently eliminating the power to revoke officers who have already been suspended is returned to the shareholders' meeting, reinforcing the respective prerogatives of each competent body regarding its members. In the case of statutory auditors, suspensions and forfeitures, although declared by the board of directors, are effective based on resolutions passed by the board of auditors;

existing regulatory provisions are aligned, such as those related to the quality of immobilized securities;

simplification measures are introduced, including, by way of example: extensions for the deadlines for submitting certain reports; consolidation of the independent reporting requirement for fiduciary activities; semiannual submission of certain quarterly reports; use of electronic mail for the preliminary submission of reports on the withdrawal of banknotes/coins suspected of being counterfeit, with updated forms directly available on the website; elimination of a minimum “classroom” training requirement for insurance intermediaries, allowing the entire training obligation to be fulfilled through online means; and the provision of "first information" services by the Credit Risk Central, free of charge.