Art Fund Regulation Matures in Italy, Market Remains Niche
Italy's framework for art investment funds has evolved, fully implementing the EU AIFMD with Legislative Decree No. 44 on March 4, 2014, and finalized by measures from Banca d'Italia and Consob on January 19, 2015. This system permits the creation of 'closed-end' Italian AIFs (FIA) through artwork contributions without needing authorization from Banca d'Italia, with a duration of up to 50 years. Enhanced conflict-of-interest regulations mandate that SGRs implement conflict mapping policies. Despite these advancements, the art fund sector remains specialized, with global assets estimated at $1.26 billion in early 2014 and 72 active art funds that year, mainly in China. Athena Art Finance was established in October 2015, securing $280 million in New York.
Key facts
- Italy fully transposed the AIFMD by 2015, creating a mature regulatory framework for art funds.
- Closed-end Italian AIFs can be reserved, established by artwork contributions, and last up to 50 years.
- Conflict-of-interest rules now require SGRs to adopt a policy document mapping conflicts.
- Global art fund assets were $1.26 billion in H1 2014, down from $2.13 billion in 2012.
- 72 art funds were active in 2014, 55 in China, but Chinese confidence is declining.
- LUISS University mapping found about 35 non-Chinese art funds, with 8 in Luxembourg.
- The Fine Art Fund Group holds $250 million of $417 million total AUM in US and Europe.
- Athena Art Finance launched in New York in October 2015 with $280 million for art-secured loans.
- Italy's Pinacotheca fund never launched; Gestiarte closed early with under 5% returns.
- Art funds should target new investors and work with established artists to create demand.
Entities
Institutions
- Banca d'Italia
- Consob
- Assogestioni
- Deloitte
- LUISS University of Rome
- The Fine Art Fund Group
- Athena Art Finance
- Pinacotheca
- Gestiarte
- Artribune
- Ministero dell'economia e delle finanze
- Parlamento europeo
- Consiglio dell'Unione europea
Locations
- Italy
- China
- Luxembourg
- Cayman Islands
- United States
- Tel Aviv
- Israel
- New Delhi
- India
- Poland
- Russia
- Switzerland
- Gibraltar
- Germany
- Guernsey
- Scotland
- Singapore
- Brazil
- Malta
- Liechtenstein
- San Marino
- United Arab Emirates
- New York
- Rome