Milano, 20 February 2004

• Conciliation for  Parmalat,Cirio, Giacomelli
• 5 Joint Commissions between the Bank and the Associations
• Case-by-case assessment based on agreed criteria
• Indemnity up to  60% plus residual value of securities
• Up to 100% in the case of significant distress
• Customers will bear no commissions for the procedure

 

Banca Intesa and Italian Consumer Associations (ACU, ADOC, ADICONSUM, ADUSBEF, ALTROCONSUMO, ASSOUTENTI, CITTADINANZA ATTIVA, CODACONS, CONFCONSUMATORI, CTCU, FEDERCONSUMATORI, LEGA CONSUMATORI, MOVIMENTO CONSUMATORI, MOVIMENTO DIFESA DEL CITTADINO, UNIONE NAZIONALE CONSUMATORI) reached an agreement on the conciliation procedure for Italian defaulted corporate bonds. The agreement sets out the establishment of a concilation procedure for customers who hold defaulted corporate bonds and deem that the Bank did not adequately perform its duty.

The agreement reached today will enable to set up a technical committee by the end of the month  which will commence the operating phase.

The conciliation, which will be free of charge for the customer, is based on simple procedures and agreed criteria:

• the agreement provides for all Italian defaulted corporate bonds (Parmalat, Cirio and Giacomelli);
• reimbursement requests will be assessed, on a case-by-case basis, by 5 Conciliation Commissions equally formed by members designated by the Bank and Consumer Associations, related to the following geographic areas: North-East, North-West, Lombardy, South, Centre. The decision to make a case-by-case assessment stems from the fact that customers who purchased the corporate bonds defaulted have very different characteristics and behaviours, ranging from the inexperienced retail investor to the sophisticated investor, well-informed when making investment decisions. Also the defaulted bonds have differentiated characteristics and the role carried out by the Bank in the various cases may have been very diverse.
• valuations will be based on agreed criteria (customer competence and investment habits, consistency between risk profile and size of the investment, role of the Bank, rated/unrated bonds, information provided). Every criterion will have its individual weight and will be considered in the definition of any reimbursement;
• normally, the simultaneous verification of all the criteria will lead to a 60% indemnity for the customer, to be added to the residual value of the security held and the coupons already collected; in cases in which the default has created significant, proven economic distress to the customer, indemnity will reach 100% (in this case the property of the security will be transferred to the Bank);
• the Bank also agreed to provide free administrative assistance to customers wishing to take part in the bankruptcy procedures currently under way.

 

This agreement is also the result of a lasting and consolidated relationship between the Bank and Consumer Associations which have already started working together on a permanent basis to deal with numerous issues, such as:

• transparency in communication with customers
• adequacy of investment processes
• contracts on new products
• assistance to customers.