Business
New Italian PNP regulation comes into effect
New Italian PNP regulation comes into effect.
About this update from Supply@me Capital Plc
[{"type":"text","content":"\n\n15 June 2023\n\nSupply@ME Capital plc\n(the \"Company\" or \"SYME\", and together with its subsidiaries, the \"Group\")\nNew Italian PNP regulation comes into effect\nSYME, the fintech business which provides an innovative fintech platform (the \"Platform\") for use by manufacturing and trading companies to access Inventory Monetisation© (\"IM\") solutions enabling their businesses to generate cashflow, is pleased to confirm the new Italian legislation pegno non possessorio (the \"PNP Regulation\") has come into full effect.\nThe PNP Regulation introduces the concept of \"security interest\" (a concept widely adopted across mainland US, Europe and the UK) into Italian law, and allows entrepreneurs easier access to financing of their inventory, without having to sell, transform or otherwise dispose of their business assets.\nUnlike the traditional pledge, the 'non-possessory pledge' will enable businesses to create a security on movable assets without the need to grant possession to the creditor - thus recognising the possibility of continuing to use the pledged assets (such as raw materials, machinery, etc.) in the production process, akin to a floating charge under English law.\nThe Italian Revenue Agency (Agenzia delle Entrate) will operate a digital ledger for the registration and keeping of pledges. As a result, all the operations relating to such pledges can be carried out swiftly and electronically (including, but not limited to, registration, consultation by anyone, modification, renewal and cancellation).\nAs stated in the Year-end Business Update of 20 January 2023, the PNP regulation is expected to provide greater opportunities for Italian banks to adopt the Supply@ME Platform for use under white-label agreements and further enhance the security available to the Inventory Funders in traditional IM transactions.\nFurthermore, it is expected that the PNP Regulation will create additional opportunities for traditional Inventory Funders to invest in IM transactions in light of the proposed improvements to the legal enforceability of guarantees over the inventory, through the arrangement of self-funding agreements, which leverage the Platform.\nAlessandro Zamboni, CEO of SYME, said:\n\"The Pegno Non Possessorio legislation provides greater security for funders seeking to monetise or finance inventories in Italy. Its lon...