The Italian government is working on a reform of the public sector aimed at abolishing costly public entities, including regulatory agencies that are deemed unnecessary. Pension regulator Covip is one of the organisations that faces the axe.
The Commisione di Vigilanza sui Fondi Pensione was set up in 1993 to oversee the activities of the country’s second-pillar pension schemes.
The reform proposals plan to merge Covip’s activities with those of Banca d’Italia, with the central bank assuming responsibility for the regulation of pension schemes.
Italian trade unions have already expressed their criticism over the loss of an independent authority which would put at risk the second-pillar pension schemes and their members. They also raised concerns about the fact that Covip’s duties might be assumed by Banca d’Italia, representing a clear conflict of interest since Covip currently regulates open pension schemes set up by banks and insurance companies, as well as collective negotiation-based schemes.
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