Italian Legislative Decree implementing CRD6 and CRR3

On 8 January 2026, the Italian Legislative Decree No. 208 of 31 December 2025 containing the implementation of CRD6 and CRR3 was published in the Official Gazette (“CRD6 Italian Decree”).

The CRD6 Italian Decree, among other things:

1. implements CRD6 provisions on third-country branches (“TCB”) by requiring, save for exemptions, third-country credit institutions intending to provide Core Banking Services toward Italian customers to establish a TCB in Italy and to be authorised by the Bank of Italy. The new framework, among other things, specifies the exemptions to the authorisation requirement and sets out conditions for obtaining such authorisation and reasons for its revocation. In this regard, the CRD6 Italian Decree also exercises some degree of gold-plating to the new EU harmonised provisions.
   The CRD6 Italian Decree mandates the Bank of Italy to adopt secondary implementing measures, including the authorisation process for TCBs and the provision of non-Core Banking Services by third-country credit institutions toward Italian customers on a freedom to provide services basis;
2. amends the CBA to implement the new CRD6 harmonised notification obligations for credit institutions, financial holding companies and mixed financial holding companies that intend to participate in mergers or divisions, acquisitions or disposals of qualifying holdings and/or material transfers of assets and liabilities;
3. reforms the framework on the fit & proper assessment for members of the management body and key function holders of Italian credit institutions, investment firms, asset managers, SICAV and SICAF, including by strengthening suitability requirements (eg. introducing the independence of mind assessment) and enhancing supervisory powers of the Bank of Italy.

TCBs and transitional regime

The new harmonised rules on TCBs will apply starting from 11 January 2027, and in order to preserve clients’ acquired rights under existing contracts and to ensure a smooth transition to the new regime, the CRD6 Italian Decree provides for grandfathering and transitional regimes with regard to third-country credit institutions currently providing banking services in Italy, according to which:

• third-country credit institutions may continue to provide Core Banking Services in Italy without establishing a branch after 11 January 2027 only to the extent strictly necessary to manage Core Banking Services agreements entered into before 11 July 2026 (with no possibility of renewal or novation);
• open-ended agreements entered into before 11 July 2026 must be terminated or transferred to authorised intermediaries by 10 January 2028, except for where the customer approaches the third-country credit institution at their own exclusive initiative (so-called ‘reverse solicitation’);
• TCBs currently authorised under the previous regime will be required to obtain re-authorisation under the new CRD6 rules. Where an application for re-authorisation is submitted by 11 January 2027, the relevant branches may continue to operate in Italy until the application is approved or rejected. In the event of rejection, the previous authorisation will be automatically revoked.

Next steps

The CRD6 Italian Decree entered into force on 9 January 2026.

Third-country credit institutions currently providing banking services in Italy should carefully assess the next steps to take and, where necessary, prepare for a TCB application to be submitted by 11 January 2027.

Authored by Jeffrey Greenbaum, Elisabetta Zeppieri, Andrea Manta and Giulia Marinai.