Giovanni Pollastrini, a spokesman for the ministry, said: “Our rules are more than 12 years out of date and need to change. The limits and rules are too complicated and need to be simplified.”

Italian institutions face a myriad complex regulations that appear to be designed to discourage diversification. There are limits on investments that depend on both their risk and asset class.

The current rules governing the investment universe began in 1996. If the Italian government wanted to model their system on the Dutch or British it would take a significant effort, particularly regarding alternatives. Italian funds are prohibited from investing in hedge funds, and there are limits on private equity and real estate.

Attempts in the past have been unsuccessful, largely in part to governing coalitions being unable to maintain power.

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