Weapons and money, Banca Iccrea considers stopping Etf's investing in mines
The parent company of the Bcc is considering blocking the placement of ETFs that invest in companies producing anti-personnel mines and cluster bombs
2' min read
Key points
2' min read
Another major Italian banking group is about to take a stance on investments in companies producing anti-personnel mines and cluster bombs. The board of directors of Banca Iccrea, next week, will consider whether to block the sale of ETFs that have in their portfolio companies linked to the world of unconventional weapons. This is an important decision given the great debate, still ongoing in the world of financial intermediaries, provoked by Law 220 of 2021 that regulated the sector.
The Iccrea Declaration
."Bcc Banca Iccrea, as parent company of the Bcc Iccrea Group," the institute is reported as saying, "intends to refrain from providing credit to the companies affected by the law and not to include, in the investment services provided through financial advisory services, the underlyings present in the black lists of providers used.
Furthermore, on the subject of the Etf stop, the bank adds: 'Even with regard to non-advisory activities (as in the case of trading in Etf), the bank is setting up mechanisms, binding on its member BCCs, to ensure compliance with the regulations despite the market difficulties involved in implementing this solution'.
The ongoing debate
.Should Iccrea decide for a stop on ETFs, it would be the second major bank to take such a stance. In fact, Bper was the first bank to block the negotiation of ETFs with underlying companies on the blacklists of landmines and cluster bombs. This was reported by a Plus24 reader in an email sent in February to 'Saver's Mail'.
As pointed out earlier, there is a great debate going on in the world of Italian financial intermediaries about Law 220/2021. A debate that became heated after the publication of the Nummus blacklist. As far as is known, many intermediaries would agree to block the inclusion of blacklisted securities in portfolios when financial advice is given. On the other hand, there is no agreement on the placement of ETFs carrying such securities. At this point, many would like the supervisory authorities to intervene in order to clarify once and for all the most controversial regulatory issues. While we wait, we proceed in no particular order.
