Italian Bank Regulator Approves All Board Candidate Lists for Major Bank Vote

Italy's financial watchdog has confirmed that all three candidate lists for Monte dei Paschi di Siena's upcoming board election are valid. The decision clears the way for a shareholder vote on April 15 that will determine the bank's leadership, including whether current CEO Luigi Lovaglio keeps his position.

Italy’s financial regulatory authority Consob has confirmed that all three candidate lists submitted for Monte dei Paschi di Siena’s board election meet legal requirements, according to a source familiar with the decision.

The regulatory agency, working alongside the European Central Bank, rejected concerns raised by the bank’s current board regarding a candidate list put forward by small investor PLT Holding. That particular list aims to keep current CEO Luigi Lovaglio in his leadership role.

According to the source, Consob wanted to eliminate any uncertainty following Monte dei Paschi’s Friday statement that described ongoing “preliminary” discussions with regulatory authorities.

The bank’s statement indicated that based on initial communications and available information, all board candidate lists appeared to meet legitimacy standards.

However, the source emphasized that Consob’s determination is definitive, not preliminary.

The regulatory agency seeks to provide complete transparency for investors, particularly as governance consultants prepare voting guidance for shareholders before the April 15 election that will select new board members and a CEO.

PLT Holding has opposed the candidate list presented by Monte dei Paschi’s board, which seeks to remove Lovaglio and install Fabrizio Palermo, who currently leads utility company Acea, as the new chief executive.

Fund manager organization Assogestioni has also submitted a third candidate list for consideration.