Commentary on Judgment No. 21397 of 2024: Financial Intermediation and Joint Liability

The recent ordinance No. 21397, issued by the Court of Cassation on July 30, 2024, offers an important reflection on the regulation of administrative sanctions in the field of financial intermediation. The judgment, which involves individuals C. and I., sheds light on the nature of sanctioning rules and their application in relation to violations committed before the entry into force of the provisions implemented by Consob and the Bank of Italy.

Nature of the Rule and Repeal

The Court established that the provision for joint liability envisaged by the previous art. 195, paragraph 9, of Legislative Decree No. 58 of 1998 is substantive in nature. Therefore, its repeal, which occurred with Legislative Decree No. 72 of 2015, is only effective for violations committed after the entry into force of the new provisions, dating back to March 8, 2016.

Financial intermediation - Art. 195, paragraph 9, of Legislative Decree No. 58 of 1998 - Nature - Substantive rule - Repeal ex paragraph 2, of art. 6, Legislative Decree No. 72 of 2015 - Effectiveness - In relation to violations committed before the entry into force of the provisions adopted by Consob and the Bank of Italy - Exclusion - Basis. Regarding administrative sanctions imposed by Consob, the provision for joint liability of the company under the previous art. 195, paragraph 9, is a substantive rule, whose repeal, ex art. 6, paragraph 2, of Legislative Decree No. 72 of 2015, is effective only in relation to violations committed after the entry into force of the provisions adopted by Consob and the Bank of Italy (i.e., after March 8, 2016).

Implications of the Judgment

This decision has important practical implications. Firstly, it clarifies that administrative sanctions cannot be applied retroactively to violations committed before the entry into force of the new rules. This principle of non-retroactivity is fundamental to ensuring legal certainty and the protection of individuals involved in the financial intermediation sector.

• Clarity on sanctioning rules
• Defense of the rights of those involved
• Importance of joint liability

Conclusions

In conclusion, ordinance No. 21397 of 2024 represents a significant step towards greater clarity in the field of financial intermediation. Its implications also extend to the area of joint liability, which is reconsidered in light of current legislation. Operators in the sector should pay attention to these regulatory developments, which could influence their operations and their exposure to administrative sanctions.