The implementation of burden sharing at four Italian banks has been a lesson: warnings alone, however often they are repeated and included in specific brochures, cannot in themselves prevent risks to reputation and stability; nor is it enough to tell the banks that capital instruments must only be sold to those who can fully evaluate their sometimes complex risk and return profiles.
Additional legislative action should be considered, mainly to take into account circumstances where conflicts of interest may be more pronounced, such as the placement with retail customers of complex financial instruments by the issuing bank. Discussions on this topic are ongoing with the competent authorities.