Art.106 Tub. circolare 3 aprile 2015 N.288 della Banca d'ItaliaPresentation
FBS is a Financial Intermediary and has been in business since 1997 as an independent in valuation, management, and purchase of impaired receivables (mainly non-performing loans) coming from national credit institutions which are still held by them or have been sold to third parties or, indeed, to FBS itself. Since its inception, FBS has carried out due diligence and servicing activities on an elective basis on portfolios of substandard and non-performing loans (including securitized) for multiple institutional bodies operating internationally and for companies belonging to them. With regard to the above-mentioned activities, FBS - which is entered in the Italian Single Register of Financial Intermediaries pursuant to Article 106 of the Italian Consolidated Banking Law No. 67, - is subject to the "Supervisory provisions for financial intermediaries" pursuant to the Circular of the Banca d'Italia No. 288 of 3 April 2015.
The Financial Intermediary
The Financial Intermediary is obliged to comply with the regulatory requirements to ensure sound and prudent management as set out in the legislation cited above. The main requirements include: capital adequacy in relation to assets and related types of risk; principles of governance that ensure the separation of functions and complete clarity in decision-making and disclosure; the management of conflicts of interest; the presence of an adequate System of Internal Controls through the presence of the three control levels, including the Risk Management function; and the verification of the requirements to be met by the relevant company representatives.
FBS SpA focuses closely on compliance with the regulations cited above.
System of Administration and Control
FBS oversees the effectiveness of organizational and corporate governance structures, which are the essential prerequisite for the pursuit of business objectives. By taking into account operational complexity, strategic objectives and organizational structure, FBS has now identified the most appropriate structure to ensure the efficiency of the Administration and Control System within the traditional corporate model i.e. Board of Directors with a strategic oversight function and Board of Statutory Auditors with a control function.
Quantification and Management of Risk
The Financial Intermediary must use methods of quantification and risk management through the adoption of the ICAAP Process governed by an appropriate Policy Framework with the ultimate aim of quantifying the total internal capital resulting from the sum of the internal capital to be maintained against each individual risk identified, quantified and valued. The Risk Management function can only be outsourced to other supervised entities or auditors.
FBS has decided to internalize the previously outsourced function, adopted a new ICAAP Policy extending the scope of the risks included, and has adopted a new Rulebook for the function and Procedures for the Selection of Managers of Control Functions.
Information Flows, Accounting and Financial Statements Information System
The Financial Intermediary must implement an Information Flow Policy in order to ensure the timely and appropriate dissemination of information among the different Organizational Units involved in the individual processes.
FBS has approved the adoption of an Information Flows Policy.
The Accounting Information System must be adequate in terms of the volume and complexity of the activities undertaken and be capable of supporting all business processes and information flows effectively and coherently.
Amongst other things, the system must also be able to handle two structured, systematic, mandatory and statutorily-defined reporting requirements: the Statistical Reports and the Reports to the Interbank Risk Office of the Banca d'Italia.
The Financial Statements must be drawn up in accordance with International Accounting Standards (IAS) and is an important instrument of reporting transparency for stakeholder community. FBS's financial statements are certified by Pricewater House & Coopers, which also handles the accounting controls.
FBS's financial statements have been drawn up using IAS. Their drafting is based on the principle of transparency towards the stakeholder community and implements the controls necessary for compliance with reporting requirements provided for by the applicable legislation.