IVASS updates the recommendations on dividend distribution and remuneration policies

Category
Undertakings
Description

In light of the uncertainties surrounding the evolution of the emergency situation and taking account of the recommendation of the European Systemic Risk Board (ESRB) of 27 May 2020, IVASS recommends undertakings to refrain, at least until 1 January 2021, from:

  • making a dividend distribution or giving an irrevocable commitment to make a dividend distribution;
  • buying back ordinary shares;
  • creating an obligation to pay the variable remuneration component to key managers.

IVASS will closely monitor compliance with these recommendations.

We remind that, due to the emergency caused by COVID-19, on 30 March 2020, IVASS had already sent a letter to insurance and reinsurance undertakings having their head office in Italy, requesting them to use extreme caution in the distribution of dividends, in line with the recommendations published by EIOPA.

Issue date
30 July 2020