Regulatory Framework
The Institute is subject to the laws and regulations of the Holy See and Vatican City State as well as to its own Statute, issued by Chirograph of the Holy Father Francis on 30 January 2023, the General Regulations and the Code of conduct.
In particular, according to article 1.4 of Law no. LXXI on the sources of law, promulgated by His Holiness Benedict XVI on 1 October 2008, “The Vatican legal framework recognises Canon Law as the primary source of legislation and the primary criterion for its interpretation”, conforming to the “legal framework must also conform to the general norms of international law, and to those arising from treaties and other agreements to which the Holy See is party”.
Furthermore, there are six organic laws and other ordinary laws specific to the Vatican City State. For matters not covered by Vatican laws, the laws and other regulations issued by the Italian Republic are observed as supplementary, subject to prior approval by the competent Vatican authority. They are adopted on the condition that they do not conflict with the doctrine of Divine Law, the general principles of Canon Law or the provisions of the Lateran Pact and subsequent Agreements, and provided that they are applicable to the state of affairs existing in Vatican City State.
The Institute is, also, subject to Law no. XVIII on Transparency, Supervision and Financial Information¹, as amended. By virtue of this law, Supervisory and Financial Information Authority is tasked with issuing implementing regulations, guidelines and circulars, both on prudential supervision and on supervision for AML/CFT purposes.
Finally, another important regulatory pillar is represented by Law No. CCLVII of 28 September 2018, which contains rules on market abuse, clarifying and completing the framework on insider trading and market manipulation, which applies to the Institute for both own and third-party transactions.
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[1] novated by Law No. CCXLVII of 19 June 2018, as well as by Decree No. CCCLXXII of 9 October 2020 converted into Law No. CCCXCVI of 7 January 2021 and, most recently, by Law DCXIV of 7 November 2023.
