Cleary Breakfast: Italy’s Non-Possessory Pledge Over Movable Assets Goes Live

April 20, 2023

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As a result of a set of regulatory interventions, last January the Inland Revenue Agency (Agenzia delle Entrate) approved the technical specifications concerning the drafting of applications for registration in the Register of Pledges, among other formalities, which constituted the last technical step necessary for the non-possessory pledge over movable assets (akin to a floating charge) to finally become available to the parties (the primary rules had been introduced in 2016 but awaited the mentioned technical specifications).

Under this new security, the pledgor will be able to grant security over its movable assets (either tangible or intangible) while maintaining the right to continue using or disposing of the collateral in the ordinary course of its business. For the above reasons, the non-possessory pledge is expected to transform commercial finance in Italy by facilitating the provision of asset-based facilities, representing one of the most relevant innovations in recent years in the field of credit security.

Cleary Gottlieb avvocato Michele Ciprietti discussed the relevant application issues, as well as some interpretative aspects that still remain uncertain among commentators.

The seminar was part of the Cleary Breakfast series.