Resolution no. 21582

Order, pursuant to article 7-octies, paragraph 1, letter b) of Legislative Decree no. 58/1998 ('Consolidated Law on Finance') to cease the infringement of article 18 of the Consolidated Law on Finance carried out through the www.nbgmarket.com website

LA COMMISSIONE NAZIONALE PER LE SOCIETÀ E LA BORSA
[THE NATIONAL COMMISSION FOR COMPANIES AND THE STOCK EXCHANGE]

HAVING REGARD TO Law no. 216 of 7 June 1974 and subsequent amendments and supplements;

HAVING REGARD TO Legislative Decree no. 58 of 24 February 1998 ('Consolidated Law on Finance') and subsequent amendments and supplements;

HAVING ESTABLISHED that, from checks on the www.nbgmarket.com website, it emerged that:

i. thewebsite is active and also available in Italian;

ii. the website offers potential investors the opportunity to trade on the Forex market, and trade CFDs with indices, commodities and precious metals as their underlying assets;

iii. in order to trade, users must register with the website — through the registration procedure which is also available to users connected from Italy — and open an online account; specifically, the following types of accountare available: "Beginner", "Intermediate" and "Professional", depending on the minimum deposit required and the benefits promised;

iv. when it comes to traceability, at the bottom of the website pages: a) it states that it "is run and operated by MAGINITO SERVICES LTD […]" with its registered office in the United Kingdom; b) a further company called NBG Market (KI) Limited is also mentioned with reference to which it specifies that it is allegedly "authorised and regulated by the Cayman Island Monetary Authority […]";

v. the "Offices and Contacts" section of the website provides, among other things, a telephone number with an Italian international prefix (+390697620509) and the e-mail address info@NBGmarket.com;

WHEREAS the activity carried out through the www.nbgmarket.com website can be classed as the provision of investment services as referred to in art. 1, paragraph 5, of the Consolidated law on Finance, as clients are offered the possibility to open a trading account on which it is possible to issue purchase and/or sale orders relating to financial instruments;

WHEREAS the above transactions, carried out through the www.nbgmarket.com website, are still ongoing and are aimed at Italian investors, since the website is also available in Italian and moreover it indicates a telephone number with an Italian international prefix;

WHEREAS the companies called Maginito Services Ltd and NBG Market (KI) Limited that are mentioned on the www.nbgmarket.com website, are not authorised to provide investment services to the Italian public, since they are not listed in the register maintained by Consob pursuant to article 20 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that the provision of investment services and activities is reserved to licensed parties as referred to under article 18, paragraph 1, of the Consolidated Law on Finance, pursuant to which, “The professional provision of investment services and activities to the public is reserved to Italian Investment firms, EU investment firms, Italian banks, EU banks and non-EU firms”;

HAVING ESTABLISHED, therefore, that the operations in question qualify as the professional provision of investment services to the Italian public, in infringement of art. 18, paragraph 1 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that, according to the provisions of article 7-octies, letter b) of the Consolidated Law on Finance - “Powers to counteract abusive practices” - CONSOB “may, with regard to anyone who offers or carries out investment services or activities over the Internet without being qualified to do so pursuant to this decree: […] b) order the cessation of the infringement”;

CONSIDERING it therefore necessary, in the light of the foregoing, to adopt this resolution immediately for reasons of urgency;

RESOLVES:

To order the cessation of the infringement of article 18 of Legislative Decree no. 58/98 carried out through the www.nbgmarket.com website, consisting in the offering and provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of those whom it concerns and will be published in the Consob Bulletin.

This measure may be appealed before the Regional Administrative Court of Lazio within 60 days of the date of service.

11 November 2020

THE CHAIRMAN
Paolo Savona