The Commission for Corporations and Stock Exchange (CONSOB) has decided that a Swiss company, which invests exclusively in hedge funds and other non-traditional investment funds, cannot be listed on an Italian regulated market. Article 16 of Ministerial Decree 228/1999 prohibits public offerings of units of hedge funds, while the value of the company's shares (and therefore any investment made by the public) is linked to the performance of the funds in which its capital is invested. The effect of a listing on the Italian stock exchange would therefore indirectly promote the subscription of units of hedge funds, in violation of article 16. In addition, in CONSOB's view, the Swiss company can be regarded as a non-harmonised collective investment undertaking, as such subject to authorisation under the regulations governing offerings by non-harmonised collective investment undertakings (Bank of Italy Regulation issued on 31st December, 2001).

Source: CONSOB Communication no. 2049128 of 15th July, 2002. Giovanni Carotenuto, Ughi e Nunziante email: [email protected]