An Italian court repealed the fines imposed by market regulator Consob on officials working for Nuova Banca dell'Etruria e del Lazio SpA over what it said was the lender's insufficient disclosure of a prospectus for a 2013 cash call, according to a ruling seen by Reuters.

The regulator initially fined former auditors and administrators of the bank, saying it was only made aware in 2016 of three important documents from the Bank of Italy detailing how the lender was unable to restructure its operations on its own and needed to be rescued, the report noted.

However, the court ruled that Consob was fully aware of the bank's problems when it cleared the capital increase prospectus and that the watchdog already knew of at least two of the documents at the end of 2013.

Banca Etruria was one of the small lenders bailed out by the Italian state in 2015 and was eventually bought by Unione di Banche Italiane SpA.