The control system in the Italian banking sector: recent changes in the application of Legislative Decree No. 231 of June 8, 2001

Abstract

PurposeThe purpose of this paper is to analyze the application of the rules governing the control system in the banking sector, particularly with respect to the impact of Legislative Decree No. 231 of June 8, 2001.Design/methodology/approachThe paper describes the contents of Legislative Decree 231/2001 and regulations issued by Italian financial regulators; it describes the solutions offered by ABI (the Italian Banking Association) guidelines in order to organize the internal control system of banks; it also outlines recent developments in case law as to the organizational models adopted by companies and describes the outcome of empirical surveys carried out on the matter.FindingsItalian banking companies adequately comply with legislative requirements set forth on prevention of corporate crimes and companies liability; for the first time a recent decision assessed the adequacy of the organization model adopted by a listed company.Practical implicationsThe paper provides certain empirical data to help the reader understand the impact of the above said Legislative Decree on the internal control system and adoption of the organizational models by Italian companies, including banks.Originality/valueThis paper provides suggestions with reference to the implementation by banks and banking groups of organizational models and their contents.