FINANCIAL SERVICES SECTOR (Conclusion of the fact-finding investigation)
PRESS RELEASE
The Italian Competition Authority and the Bank of Italy concluded a fact-finding investigation on the financial services sector. Such a sector resulted, on the whole, to be underdeveloped in comparison with other international financial markets.
With regard to the competition profile, four relevant markets have been identified. Two of them - the one of investment banking services such as to list new companies on the Stock Exchange, and the other concerned with merger and acquisition consulting - do not have competition problems.
On the contrary, the two markets left - the one of consultants assisting listed companies in selling their shares; the other related to advisors serving client needs in the areas of crisis situation and debt restructuring - are characterized by a critical competitive situation, both for the high level of supply concentration and the stable presence of Mediobanca holding a dominant position. In both the markets above, Mediobanca in fact takes advantage of its core competence, the expertise acquired and the number of clients served, as well as its consolidated relationships with the largest banks and companies, even through shareholdings.
In the future certain factors will affect competition positively in all the four markets defined by the fact-finding investigation: the expansion of the range of services provided by banks, the review of the public peon system, the further transfer of public shareholdings, the monetary union and the increasing market globalization.
However, the Authority felt that the positive trend in both demand and supply should be strengthened by the entry of national and foreign intermediaries in the market concerned. Furthermore, companies should be aware that competition in the financial services sector also depends on their conduct and, lastly, Government and Parliament should pay more attention to a new approach to regulation.
The Competition Authority and the Bank of Italy will control over operators of the sector so as to avoid abuses of dominant position or collusive practices.