Joined Chambers of the Italian Supreme Court

Italian Supreme Court Extends the Scope of Consumer Protection Provisions Under the Italian Financial Law

On June 3, the Joined Chambers of the Italian Supreme Court issued a decision concerning the obligation for banks and financial intermediaries, engaging in “door-to-door” selling of financial instruments, to provide a withdrawal right (jus poenitendi) to be exercised by retail clients within seven days of the signing of the relevant contract.

The decision extends such obligation, originally provided by Section 30, paragraph 6, of the Italian Financial Law (namely, Legislative Decree no. 58 of February 24, 1998, as amended) only in relation to the placement of financial instruments and portfolio management contracts entered into outside the registered office/place of business, also to other types of financial services.

The underlying rationale is to protect retail clients from the risk of being taken by surprise “when their order is the result of a solicitation put in place by the intermediary out of its registered office,” regardless of the type of investment service that has led to such an operation.  Judgment (in Italian only).