A credit broker is a person who puts banks or financial intermediaries envisaged under Title V of the Consolidated Banking Act into contact with potential customers for the granting of financing in any form (cf. art. 128-sexies, paragraph 1, of the Consolidated Banking Act).

They may only carry out the activity just mentioned, as well as activities connected with or instrumental to it and those defined as compatible by the regulations (see art. 128-sexies, paragraph 3, of the Consolidated Banking Act and 17, paragraph 4-quater, of Legislative Decree no. 141/2010).

Credit brokers carry out their activities without being linked to any of the parties by relationships that could compromise their independence (cf. art. 128-sexies, paragraph 4, of the TUB).

It should also be remembered that the advisory activity, aimed at putting banks or financial intermediaries into contact with potential customers for the purpose of granting financing in any form, is part of the activity of credit mediation, as such subject to all the constraints of the law.

In order to carry out the activity of credit mediation vis-à-vis the public, it is necessary to obtain enrolment in a special List held by the OAM, after having met the requirements laid down by law.

 

COMPATIBLE ACTIVITIES
The activities of insurance or reinsurance brokerage and financial consultancy are compatible, and can therefore be carried out by the credit broker, without prejudice to the respective obligations to be registered in the relevant list, register or roll (cf. art. 17, paragraph 4-quater, of Legislative Decree no. 141/2010).

 

EXCEPTIONS

The following does not constitute the exercise of credit mediation (see art. 12, paragraph 1, of Legislative Decree no. 141/2010):

• the promotion and conclusion, by suppliers of goods and services, of financing contracts solely for the purchase of their own goods and services on the basis of special agreements entered into with banks and financial intermediaries. These contracts do not include those relating to the issue of credit cards;
• the promotion and conclusion, by banks, financial intermediaries, investment companies, asset management companies, SICAVs, insurance companies, payment institutes, electronic money institutes and Poste Italiane S.p.A., of contracts relating to the granting of loans in any form and the provision of payment services;
• the stipulation, by trade associations and Confidi (guarantee consortia), of agreements with banks, financial intermediaries and other entities operating in the financial sector aimed at facilitating access to credit for associated companies.

 

PROHIBITIONS

Brokers are prohibited from concluding contracts and carrying out, on behalf of banks or financial intermediaries, the granting of loans and any form of payment or collection of cash, other means of payment or credit instruments.
Brokers may collect loan applications signed by customers, carry out an initial investigation on behalf of the lending intermediary and forward these applications to the latter (see art. 13 of Legislative Decree no. 141/2010).