PRESS RELEASE

FORCED TO BECOME SHAREHOLDERS TO OBTAIN A SOFT LOAN: A HEAVY EUR 4.5 MILLION FINE ON BANCA POPOLARE DI VICENZA

In order to obtain a soft loan, consumers were forced to become shareholders so as to finance capital increase transactions carried out in 2013 and 2014. An unfair commercial practice for which the ICA imposed a fine on Banca Popolare di Vicenza amounting to EUR 4,500,000.

According to the Italian Competition Authority, during the period 2013 - April 2015, the Bank conditioned the granting of loans to consumers against their purchase of shares or convertible bonds. The aim was to successfully achieve these capital increase transactions and reach the objectives set therein.

In particular, in order to obtain the so-called "shareholder loans" - characterised by concessional financial terms when compared to ordinary loan products - consumers were conditioned: i) to purchase the Bank’s minimum share packages (equal to 100 shares) and ii) not to sell these share packages in order to continue to benefit from the concessional financial terms.

Moreover, concomitantly with the subscription to "shareholder loans", consumers were also induced to open a bank account reserved for shareholders with the proposal to establish a new bank account at the Bank so as to execute the shareholder loans and, through this account, also benefit from the advantages of being shareholders.

The ICA noted that the practices carried out by Banca Popolare di Vicenza considerably limited consumers’ freedom to choose in relation to financing products, inducing them to make a commercial decision that they would not have made otherwise: that is, subscription to the Bank’s securities (securities, however, that can hardly be negotiated or liquidated, given the non-listed nature of the company Banca Popolare di Vicenza, and which could not be disinvested during the loan period under the penalty of losing the soft financial terms provided). The ICA also ascertained that, by obliging consumers to open even a shareholders’ bank account linked to the loan with the same Bank, Banca Popolare di Vicenza implemented a practice whereby loans have been bound to bank accounts which is prohibited by the Consumer Code.

Rome, 12 September 2016