Italian regulators have not specifically focused on RegTech issues yet, but it is likely that, due to the high degree of regulatory activity in Italy, the attention to such kind of services will increase in the very next future.
Unlike other countries (such as the United Kingdom or Canada), RegTech services are not specifically regulated under Italian law. Therefore, generally speaking, no license is required to provide RegTech services in Italy unless a regulated activity is concerned.
Also due to a number of newly issued regulations implementing EU rules (such as the Insurance Distribution Directive or the PSD 2), the local RegTech sector has seen a remarkable increase in terms of new entrants recently.
According to the Observatory of the Polytechnic University of Milan, the RegTech market’s total turnover in 2017 was EUR 5,448,754 with a yearly growth rate of 15%.
There are 15 providers of RegTech services that operate mainly in the following sectors: trading platforms, personal data and ID management, document management; tax advice; regulatory and compliance software development.
CONSOB pays the highest attention to and constantly monitor the evolution of the market and foster the research of technological solutions consistently with financial stability and consumer protection.
In this context, CONSOB set up a specific work stream under the FinTech Steering Committee aimed at monitoring RegTech, according to CONSOB’s 2018 Annual Report. However, as it will be further explained below, the RegTech market in Italy is at its early stages even though it is developing at a fast pace.