UBI Banca Group

In a meeting of 11 th July 2011, the Board of Directors examined and studied the matters
raised, taking note of the Consob’s observations. It decided to set up a specific working group,
which included personnel from the relevant functions at the Parent, designed to identify and
programme appropriate organisational and IT action to remedy the matters raised.
That working group has already concluded some of its planned activities designed to comply
with the Supervisory Authority’s recommendations and it has made periodic progress reports
to the management body. Further activities are continuing in order to fully define the action
decided.
FINES
With Resolution No. 17727 of 29 th March 2011, notified on 6 th April 2011, the Consob imposed
administrative fines on twelve employees of IW Bank and also jointly on the bank itself on
conclusion of the administrative penalty proceedings initiated with a letter of 12 th April 2010
for violation of Art. 187 nonies of the Consolidated Finance Act and the relative provisions to
implement it issued by the CONSOB in the period 1 st January 2007 – 3 rd December 2008
(further information is given in the 2010 Annual Report).
The total amount of the fines imposed, which vary from a maximum of €32 thousand to a
minimum of €12 thousand for the individuals involved, was €252,900.
The proceedings which led to the imposition of the fines was initiated by the Spot Markets
Office of the Markets Division of the Consob, following the inspections conducted at IW Bank
in the period from 13 th March until 3 rd December 2008.
On 27 th July 2011, the Bank of Italy notified Centrobanca of a provision concerning the
application, pursuant to Art. 145 of Legislative Decree No. 385/1993 (the consolidated
banking act), of administrative fines for a total of €339 thousand on members and former
members of the management and supervisory bodies and on the former General Manager in
office at the time of the matters in question (2008) .
The provision was issued following inspections conducted in the period February-July 2010,
designed to assess the Group with regard to the management, governance and control of credit
risk in the corporate customer segment, during which the supervisory authority found
irregularities relating to Centrobanca subject to penalties (failures in the organisation and
management of credit by the General Manager, failures in organisation and internal controls
on the part of members and former members of the Board of Directors and also failures with
controls by the Board of Statutory Auditors);
Tax aspects
Summary of changes introduced during the year
Provisions were issued during the year, which involved the financial sector. These were the
“Development Decree” Decree Law No. 70 of 13 th May 2011, the “Financial stabilisation
decrees” Decree Law No. 98 of 6 th July 2011, Decree Law No. 138 of 13 th August 2011 and the
“Save Italy” Decree Law No. 201 of 6 th December 2011, some of which are still with no
definitive interpretative framework. Amendments were made to these towards the end of the
year with the “thousand extensions” Decree Law No. 216 of 29 th December 2011 and at the
beginning of 2012, with the “Liberalisations” Decree Law No. 1 of 24 th January 2012.
The most important points of these measures are given below.
Intermediary Regulations) concerning the duty of an intermediary to act with integrity and transparency when distributing illiquid
financial products.
In accordance with Art. 145, paragraph 10 of the Consolidated Banking Act, Centrobanca is civilly liable to make the payment, with
the obligation to recover the amounts from those responsible.
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