Banca Generali SpA's board of directors has approved the merger of unit BG Fiduciaria SIM into the parent company.

Banca Generali, which fully owns trust company BG Fiduciaria, said the unit's board of directors also passed a similar decision Oct. 10.

The merger, which has secured approval from the Bank of Italy, is expected to take effect Jan. 1, 2018, and will simplify administrative and operational processes by integrating both companies' resources devoted to portfolio management.

The plan for the merger was initially announced in June.