In April, proceedings were started because the bank had informed customers with a cash balance equal to or above 100 thousand Euros and no investments or loans, of changes in the contractual relationship

The Italian Competition Authority has closed the investigation proceeding started on 1 April 2021 against the FinecoBank S.p.A. for alleged unfair commercial practices. With letter of 18 March 2021, the Bank had indeed informed current account holders that there would be a change in the contractual relationship whereby, in the case of current account holders with cash balance equal to or greater than 100,000 Euro with no investments or loans associated to the account, the Bank could withdraw from the contract.

According to the grounds for which the investigation was opened, with this amendment to the contract FinecoBank was in a position to exert pressure on current account holders to convince them to subscribe to financial and/or asset management services, at expensive economic terms, in order to divert cash balances exceeding 100,000 Euros to forms of loans or investments that were more profitable for the bank, leaving customers with the only alternative of closing the current account. This option is however extremely penalizing for account holders, given the costs they are forced to incur to transfer the account to another bank.

The Authority has accepted the commitments submitted by FinecoBank to resolve this issue.

One of the most significant commitments is that the Bank will not terminate the relationship with current account holders not holding an account with another bank, given that these holders would be most penalized if the accounts were closed. In the case of current account holders without another current account who, after receiving the March letter, have already subscribed loans or investments, FinecoBank will reimburse the commissions paid to execute the investment orders, and will allow these current account holders to return the loans without charges or penalties.

FinecoBank will offer customers interactive online courses in order to improve their knowledge and skills on the advantages and disadvantages of holding available funds on current accounts.

FinecoBank will also introduce a computerised system for daily reporting of customers to whom expensive terms apply in terms of withdrawal (available funds equal to or greater than 100,000 euros and no investments or loans linked to the account). To the customers identified as above, the bank will explain, in an objective manner and without promotional purposes, different options to avoid withdrawal:

• individual re-contracting of current account costs according to pre-established price lists and without discrimination;
• the transfer, at no charge, of available funds to accounts held by the customer with other banks;
• the use of available funds for the purchase free of charge of Italian government bonds, which may be sold at no charge, or for the purchase of financial instruments (shares, bonds, shares in the Exchange Traded Fund and/or in other UCITS) through Fineco's online platform independently or with the assistance of a financial advisor of the bank. When considering the different options, the bank will explain to customers that they have the right to use these services without having to sign additional contracts or invest in funds or other products and services offered by Fineco or other group companies.

Moreover, the bank will explain to customers that it will not withdraw from the contract for a period of 90 days from when they are contacted; this is the time available to the customer to choose the solution that best suits its needs amongst the options presented.

Finally, FinecoBank will advertise - with clear and intuitive graphic methods - all said commitments on its website and customers, in their next statements, will be invited to consult the “Account Terms” section of the bank’s website to view these commitments.

The Italian Competition Authority has decided to make all the commitments presented by FinecoBank binding, given that it considers these to be appropriate to eliminate the critical issues under investigation.

Rome, 17 November 2021