Capital instruments already issued based on the old rules will continue to count towards the requirement for a long time (grandfathering). Supervisory action in Italy has several distinctive features. It does not stop at establishing general prudential principles, leaving their interpretation up to the market. Nor does it limit itself to verifying compliance with the rules.
Instead, it weighs intermediaries’ strategies and management; without interfering in business decisions, it verifies that governance, organization, operating processes and control systems are consistent with the risks. 8  BIS Review 74/2010  Our off-site controls are supplemented by a high level of on-site supervision. In 2009 there were over 200 inspections of banks and other intermediaries. Targeted checks increased substantially.