Securities Commission (Iosco) published a Public Statement on the application of the international accounting standard IFRS 9 for the calculation of expected credit losses.
With respect to AFX Capital Markets Ltd (an investment company disciplined by Cypriot law, whose authorization to operate – also valid in Italy - has been suspended since 19 July 2019), please be informed that the competent Cypriot supervisory authority (Cyprus Securities Exchange Commission - Cysec) recently announced the onset of the compensation procedure, managed by the competent Cypriot Fund ("Investment Compensation Fund") with respect to customers, including the Italian ones, of the aforementioned company.
All the interested parties must apply with specific reference to the aforementioned Fund not later than 30 September 2020, according to the methods specified by the Fund itself in a specific notice.
The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, issued a Public Statement to clarify issues regarding the publication by execution venues and firms of the general best execution reports required under RTS 27 and 28 of MiFID II, in light of the COVID-19 pandemic.
The European Securities and Markets Authority (ESMA) is issued a Public Statement to promote coordinated action by National Competent Authorities (NCAs) regarding issuers' obligations to publish periodic information for reporting periods ending on 31 December 2019 or after in the context of the COVID-19 outbreak.
Consob has ordered the blackout of 6 new websites, offering abusive financial services / financial products: 4 websites related to abusive financial intermediation and 2 websites offering financial products in the absence of a prospectus.
The Authority availed itself, in relation to the blackout of the abusive financial intermediaries websites, of the powers resulting from the "Growth Decree" (‘Decreto Crescita', Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies) as well as of the new power established by Law no. 8 of 28 February 2020 (Article no. 4, paragraph 3-bis), concerning the blackout of the website through which the unauthorized offer has been made effective.
Below are the websites in relation to which Consob has ordered the blackout:
- Dubai FXM Ltd (www.dubaifxm.co and URL dubaifxm.co websites);
- "DAX1001" (internetdax1001.com website);
- Global Pegasus Ltd (internetwww.fx4lux.com website);
- "AirBit Club" (https://airbitclub.com and www.bitbackoffice.com websites).
Accordingly, it has risen to 180 the overall number of websites obscured by Consob starting from July 2019, since the Authority was empowered as to order the blackout of the unauthorized financial intermediaries websites.
The measures adopted by Consob are available on the website www.consob.it.
The activities for the blackout of the said websites by the Internet connectivity providers operating on the Italian territory are in progress. For technical reasons it can take a few days for making them effective.
Consob warns all investors about the value of making use of their utmost diligence in order to make their investment choices in full awareness, with the adoption of behaviors based on common sense, which are essential to safeguard their savings: among these, a preventive verification, with respect to websites which offer financial services, that the operator through which they make their investment is an authorized entity and, in relation to financial products offers, that the prospectus has been published.
To this end, Consob reminds that on the homepage of its website www.consob.it is available the section "Watch out for scams!", where useful information have been published for the purpose of warning investors about the abusive financial initiatives.
Communication no. 2/20 of March 25, 2020
Subject: Provisions pursuant to Article no. 103, paragraph 1, of the Law Decree of 17 March 2020, no. 18
The Article no. 103, paragraph 1, of the Law Decree of March 17, 2020 n. 18, bears a discipline on the suspension of the terms of proceedings, pending with public administrations. The standard provides that, for proceedings pending on 23 February 2020, or started after this date it is not taken into account the period between 23 February and 15 April 2020.
With regard to the administrative acts of competence of Consob, regulated by the national law, the following clarifications are made with reference to the scope of the suspension introduced by this standard.
Based on Article no. 103, paragraph 1, of the Legislative Decree no. 18/2020, for the purpose of calculating the terms of regulation of the performance of the administrative procedures of competence of Consob, including the sanctioning proceedings, pending on 23 February 2020 or started after that date, it is not taken into account the period between the same date and 15 April 2020.
The suspension operates according to the law (ex lege) and the terms will begin to run again from 16 April 2020.
The suspension of the terms also operates with regard to administrative procedures - pending on the date of entry into force of the Law Decree – which are characterized by a "significant" deadline, i.e. the terms whose expiration, lacking the adoption of an express provision affects, according to the law, the acceptance or the rejection of the request of the private individual (by the Article no. 103, paragraph 1, of the Law Decree no. 18 / 2020 "The terms of formation of the final will of the administration in the expected forms of significant silence provided by the legal system are accordingly extended or deferred for a corresponding time").
Also in this case the effect which has been foreseen by the standard is automatic and determines that:
- the "significant" terms, which started to run before 23 February 2020 and which are ongoing at the date of entry into force of the Law Decree, interrupt and start to run again at the date of 16 April 2020;
- the "significant" terms, that begin to run in the period between 23 February and 15 April 2020, start from new (ab origine)at the date of 16 April 2020.
Without prejudice to the above, Consob, in general, will proceed to carry out its own administrative activity according to the ordinarily established terms, in compliance with the procedural guarantees and without prejudice to the cases in which the activity of Consob is affected by the procedural contribution of third parties, private or public, who will be able to take advantage of the suspension provided by the law, even without giving notice to the Institute.
Precautionary and urgent measures
They are excluded by the application range of the suspension provided for by Article no. 103 of the Law Decree the precautionary and urgent measures of competence of the Institute, provided that the related proceedings do not consider, on the basis of the secondary regulation for the implementation of Law no. 241 of 1990 (Consob Regulation no. 18388 of 2012), a deadline by which the Authority provides for the adoption of the provision.
Disclosure obligations to Consob
The provision contained in Article no. 103 of the Law Decree n. 18/2020 does not apply to terms directly provided for by law, regulation or general resolutions, producing obligations to transmit information or documents to Consob. These provisions, established for the protection of the supervisory activity of the Institute, do not give rise to administrative procedures; consequently, these obligations must be fulfilled in ordinary terms.
Taking into account the emergency situation and the measures to contain the infection from COVID-19 adopted by the Presidency of the Council of Ministers, the Commission reserves the right in any case to extend, in certain specific matters, the terms provided by the Commission itself with reference to regulations or general resolutions.
In exercising its supervisory powers, in any case, the Authority will consider adequately the current emergency context.
Consob today published three Warning notices (n. 3/20, n. 4/20 and n. 5/20) that specify the measures to be adopted by the operators within the deadline of 2020 following the approval of the withdrawal agreement of the United Kingdom from the European Union (EU).
British operators providing investment services in Italy have been warned about the need to adopt all the measures to guarantee business continuity in Italy or to carry out, if necessary, an orderly exit from the domestic market. Operators will also have to provide Italian customers with updated information about the consequences of the changed operating conditions deriving from Brexit, also with specific reference to the implications for existing OTC derivative contracts.
The Warning (n. 3/20) was made necessary due to the overcoming of the transitory discipline dictated by Law Decree no. 22 of 25 March 2019 to the Brexit no-deal case. The related Communications by Consob, as well as the notifications sent by operators to Consob pursuant to the Decree, are therefore no longer valid. The measures adopted by Consob in 2019 to ensure the operational continuity of the Italian and British trading venues are no longer effective, too.
In fact, a new "transition period" has begun, lasting until 31 December 2020 (except for any extension), in which European legislation will continue to apply as if the United Kingdom were still a member of the European Union. Consequently, the rules provided for non-EU subjects will also apply to British entities operating in Italy, as well as to Italian entities operating in the United Kingdom.
For the trading venues, the office managers have been similarly warned (Warnings n. 4/20 and n. 5/20) about the fact that, if they intend to operate after the end of the transition period, they must promptly submit to Consob a specific request based on the regulatory regime applicable to them. Furthermore, the office managers having already obtained from Consob in 2019 (or, in any case, having filed for this purpose) the clearance, the authorization or the recognition with relation to a no-deal scenario, have been invited to communicate if they are still interested, or not, in obtaining the provision for the extension of their operations as well as to report any changes that have occurred to the information already communicated at the first instance.
The Committee of European Auditing Oversight Bodies (CEOAB), the European committee coordinating the supervisory activities on auditors, in which Consob participates, published on March 25, 2020 a notice of attention highlighting issues having a core relevance for carrying out the auditing activities, as a consequence of the Covid-19 outbreak (Coronavirus).
Coronavirus emergency: Consob extends the deadlines for sending certain periodic communications due from intermediaries and online portal managers and draws the attention of portal managers on the necessary measures (March 25th, 2020)
Consob has decided (resolution no. 21314 of March 25, 2020) to grant intermediaries a 60-day extension for the terms relating to the sending of the report on how to perform the services and the report on the organizational structure envisaged by Resolution 17297/2010 .
The decision was made in light of the containment measures taken by the government to deal with the Coronavirus emergency. The restrictions in force as a result of the aforementioned measures could in fact preclude supervised entities from the timely fulfillment of the obligations set forth therein.
Similarly, Consob has extended (resolution n. 21315 of March 25, 2020) also 60 days the deadlines for sending portal managers the communications required by art. 21, paragraph 3, of the Regulation on raising funds through online portals. The attention of these managers was also drawn to the need to take measures to ensure the operational continuity of the activities carried out on the portal as well as to promptly update the information relating to the bidders on significant events likely to influence investment decisions.
Coronavirus emergency: Consob suspends until May 15th the deadline for paying supervisory fees for 2020 and until April 15th the terms of proceedings to the Referee for financial disputes - ACF (March 19th, 2020)
Consob has suspended until May 15, 2020 the deadline, already set for April 15, for the payment of supervisory contributions for 2020 due by Italian and foreign supervised entities (resolution no. 21305 of March 18, 2020).
Consob has also decided to further extend, from March 22 to April 15, 2020, the suspension of all the terms of the proceedings in progress at the Referee for Financial Disputes (ACF), already suspended once from March 12 to 22 (resolution 21308 of March 18, 2020, only in italian version).
Both resolutions were adopted, taking into account the epidemiological emergency from Covid-19.
Consob/Bank of Italy Memorandum of Understanding (MoU) for the purpose of regulating mutual cooperation activities between the Financial Banking Arbitrator (ABF) and the Arbiter for Financial Disputes (ACF) (Joint Press release of March 19th, 2020)
The National Commission for Companies and the Stock Exchange (Consob) and the Bank of Italy have today signed a Memorandum of Understanding (MoU) for the purpose of regulating mutual cooperation activities between the Financial Banking Arbitrator (ABF) and the Arbiter for Financial Disputes (ACF), the alternative dispute resolution systems between customers and banking and financial intermediaries, with respective competences on the subjects of banking and financial transactions and services and of investment services and activities.
The Protocol, set for the purpose of guaranteeing a higher and more effective degree of customer protection, promotes the institution of coordination and information exchange mechanisms between the ABF and ACF systems, with regard to the respective autonomy of the Boards on common interest issues as well as on public disclosure and financial education initiatives.
Consob prohibits short selling on the entire Stock Exchange list. An enhanced transparency regime adopted on investments in listed companies. The measures will be in force for three months, starting tomorrow (Press release of March 17th, 2020)
Consob has adopted today two measures aimed, on the one hand, to contain the volatility of the financial markets and, on the other hand, to strengthen the transparency of the holdings in the Italian companies listed on the Stock Exchange.
These measures were made necessary by the strong turbulences triggered in the last days by the Covid-19 pandemic.
Starting from tomorrow's session of 18 March, Consob introduced a prohibition of net short positions (short selling and other bearish operations) (Resolution n. 21303 of March 17, 2020) pursuant to Article 20 of Regulation (UE) 236/2012, accordingly to the positive opinion of ESMA.
For the first time the ban applies to all the traded shares on the Italian regulated market.
Accordingly to the ban, which follows other measures already adopted for the Stock Exchange sessions of 13 and 17 March, any form of bearish speculative operation is prohibited, even if carried out through derivatives or other financial instruments. Bearish intraday trades are also prohibited.
The ban will apply for three months.
The decision to apply restrictive measures on the whole share price list was taken with the aim of restoring market integrity, also being complementary to the extraordinary measures on short selling which were adopted in the last days by ESMA and by the Supervisory Authorities of Spain, France and Belgium.
Consob also decided to introduce a temporary regime of enhanced transparency on the shares held by investors in the Italian companies of largest capitalization and widespread shareholding, listed in the Stock Exchange Market.
The provision (Resolution n. 21304 of March 17, 2020), adopted pursuant to article 120 paragraph 2-bis of the Consolidated Law on Finance (TUF), lowers - without prejudice to the thresholds already provided for by current legislation - the minimum thresholds beyond which it is required to communicate the participation in a listed company.
The resolution affects the 48 companies listed on the electronic stock market of Borsa Italiana, indicated in the list attached to the Consob provision and identified according to a grid of criteria that refers to a capitalization of more than 500 million Euros and to the ownership structures (companies that are controlled by law are excluded).
The new threshold is set at 1% for non-SME companies and 3% for SMEs.
This measure will entry into force tomorrow and will be valid, unless revoked, for three months.
The European Securities and Markets Authority (ESMA) has issued a decision temporarily requiring the holders of net short positions in shares traded on a European Union (EU) regulated market to notify the relevant national competent authority (NCA) if the position reaches or exceeds 0.1% of the issued share capital after the entry into force of the decision.
The restriction will apply for the entire trading day of 17 March 2020.
Moreover, Consob has decided to start the procedure for the adoption of further restrictive measures pursuant to Article 20 of the abovementioned Regulation.
This initiative is complementary to the Decision adopted by ESMA, pursuant to Article 28 of the same Regulation, which has lowered the minimum thresholds for reporting of net short positions to national authorities from 0.2% to 0.1% of the share capital.
These actions are aimed at restoring a trading context with a higher degree of transparency and stability.
The European Securities and Markets Authority (ESMA), together with National Competent Authorities (NCAs), is closely monitoring the situation in view of the continuing impact of the COVID-19 outbreak on financial markets in the European Union (EU).
Following a Board of Supervisors discussion examining the market situation and contingency measures taken by supervised entities, ESMA is making the following recommendations to financial market participants:
- Business Continuity Planning – All financial market participants, including infrastructures should be ready to apply their contingency plans, including deployment of business continuity measures, to ensure operational continuity in line with regulatory obligations;
- Market disclosure – issuers should disclose as soon as possible any relevant significant information concerning the impacts of COVID-19 on their fundamentals, prospects or financial situation in accordance with their transparency obligations under the Market Abuse Regulation;
- Financial Reporting – issuers should provide transparency on the actual and potential impacts of COVID-19, to the extent possible based on both a qualitative and quantitative assessment on their business activities, financial situation and economic performance in their 2019 year-end financial report if these have not yet been finalised or otherwise in their interim financial reporting disclosures; and
- Fund Management – asset managers should continue to apply the requirements on risk management, and react accordingly.
ESMA, in coordination with NCAs, continues to monitor developments in financial markets as a result of the COVID-19 situation and is prepared to use its powers to ensure the orderly functioning of markets, financial stability and investor protection.
Consob has ordered the blackout of 6 new websites, which illegally offer financial services.
The Authority availed itself of the powers resulting from the 'Decreto Crescita' ('Growth Decree', Law no. 58 of June 28, 2019, article 36, paragraph 2-terdecies), on the basis of which Consob can order Internet access providers to block access from Italy to websites offering financial services without the proper authorization.
The companies and websites are listed below:
- Novatrades Ltd (website www.novatrades.com);
- Game Capital ADS Limited (website https://btcglobefx.com);
- "WORLDFXM.COM" (website https://worldfxm.com);
- "GoldFxTrading" (GFT) (website web.goldfxtrading.com);
- "Alphacapital" (website https://alphacapital.fm);
- Swiss Capital Ltd (website https://capitalswissfx.com).
It rises, therefore, to 174 the overall amount of websites which have been blocked by Consob since July 2019, when the Authority was given the power to order the blackout of the websites.
The measures through which the aforementioned companies were ordered to stop their abusive activities (measures adopted prior to the entry into force of the aforementioned "Growth Decree") are available on the website www.consob.it.
The activities for the blackout of the said websites by the Internet connectivity providers operating on the Italian territory are in progress. For technical reasons it can take a few days for making them effective.
Consob warns all the investors on the value of making use of the utmost diligence, making their investment choices in full awareness, adopting common sense behaviors, basically to protect their own savings: among these, first of all¸ Consob recommends a preventive verification of the authorizations had by the websites with which the investment is made. To this end, Consob reminds that on its website homepage www.consob.it it is available the section "Watch out for scams!", where useful information have been made published for warning investors against abusive financial initiatives.
Consob has decided today (Resolution no. 21300 of 12 March 2020 - only Italian version) to suspend the procedure-related terms of the ongoing sanction proceedings until April 3, next.
The decision was taken with reference to the measures taken by the Italian Government in recent days to deal with the Coronavirus emergency.
The goal is to guarantee to the recipients of a sanctioning procedure the full right of participation to the procedure itself, for the period of their interlocution with the Offices and the Commission. The limitations in force as a result of the measures taken by the Government, aimed at contrasting the spread of Coronavirus could, in fact, slow down and partially compromise the participation in the proceeding.
Consob has similarly decided to also suspend (Resolution no. 21299 of 12 March 2020 - only Italian version) the terms of the proceedings under way at the Arbitrator for financial disputes (ACF), the out-of-court settlement body for disputes between savers and intermediaries, set up at Consob. The suspension has been issued until March 22nd next. Any extensions will be promptly communicated.
Consob decided to temporary prohibit short sales in 85 Italian shares (see Attachment) with resolution no. 21301 of 12 March 2020.
The prohibition was adopted pursuant to Article 23 of regulation (UE) n. 236/2012 on short selling, considering the price change recorded by the shares on 12th March 2020.
The ban will apply for the entire trading session of tomorrow, Friday 13th March 2020, on the MTA market of Borsa Italiana.
The prohibition applies to short sales backed by stock lending. This extended the scope of the prohibition of naked short selling, already in force for all shares from 1st November 2012 by virtue of the regulation (UE) n. 236/2012 on short selling.
The text of the resolution is available on the website www.consob.it and is attached to this press release.
Rome, 12 March 2020
Resolution no. 21301 of 12 March 2020
Temporary prohibition of short selling in some shares traded in the MTA Italian regulated market, pursuant to Article 23 of the Regulation (EU) of the European Parliament and of the Council no. 236 of 14 March 2012
LA COMMISSIONE NAZIONALE PER LE SOCIETÀ E LA BORSA
HAVING REGARD TO Law no. 216 of June 7, 1974, as subsequently amended and integrated;
HAVING REGARD TO Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012;
HAVING REGARD TO Article 4-ter(2) of Legislative Decree no. 58 of February 24, 1998, according to which Consob is appointed with the task to implement the measures and exercise the functions and powers provided by Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012 with reference to shares, among others;
HAVING REGARD TO Article 12 of Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012, imposing restrictions on uncovered short sales in shares;
HAVING REGARD TO Article 23 of the above-mentioned Regulation (EU) no. 236/2012, which defines the power to temporarily restrict short selling of financial instruments in case of a fall in price greater than the thresholds set in the same Article;
TAKING INTO ACCOUNT THAT the fall of the shares' prices included in Attachment no. 1 of this resolution, during March 12, 2020, compared to the closing price on the previous trading day, was greater than the relevant threshold set in Article 23;
CONSIDERING THAT the information background does not fully validate the above-mentioned price fluctuation;
RESOLVES AS FOLLOWS:
1. The prohibition of short selling in shares included in the Attachement no. 1 of this resolution, on the MTA, a regulated market organised and managed by Borsa Italiana S.p.A., under Article 23 of the above-mentioned Regulation, taking effect for the entire trading day of March 13, 2020.
2. It is clarified that, pursuant to Article 23(3), the above-mentioned prohibition does not apply to the activity of market making, as defined by Article 2(1)(k) of the aforementioned Regulation.
This resolution shall be transmitted to ESMA pursuant to Article 23 of the Regulation EU no. 236 2012 and shall be published on the Consob website after the positive conclusion of the procedure provided for in the above-mentioned Article.
This resolution shall take effect as soon as it is published on the Consob website. This resolution shall be transmitted to Borsa Italiana and shall be published on the Consob Bulletin.
Annex 1 - List of securities subject to the ban on short selling
ISIN DENOMINATION IT0001454435 TXT IT0004093263 ASCOPIAVE IT0003621783 LAZIO IT0003796171 POSTE ITALIANE IT0001233417 A2A IT0005211237 ITALGAS NL0012059018 EXOR IT0005218380 BANCO BPM IT0003153415 SNAM IT0004056880 AMPLIFON IT0005252207 CAMPARI NL0010877643 FIAT CHRYSLER AUTOMOBILES IT0001031084 BANCA GENERALI IT0001347308 BUZZI UNICEM IT0004176001 PRYSMIAN IT0003128367 ENEL IT0003856405 LEONARDO IT0004712375 SALVATORE FERRAGAMO IT0003487029 UBI BANCA IT0003506190 ATLANTIA IT0000062957 MEDIOBANCA NL0000226223 STMICROELECTRONICS IT0004965148 MONCLER NL0010545661 CNH INDUSTRIAL IT0000072170 FINECOBANK IT0005366767 NEXI IT0000062072 GENERALI IT0003828271 RECORDATI IT0005278236 PIRELLI & C IT0000336518 JUVENTUS FOOTBALL CLUB LU0156801721 TENARIS IT0000072618 INTESA SANPAOLO IT0005239360 UNICREDIT IT0005252140 SAIPEM IT0001250932 HERA IT0000066123 BPER BANCA IT0003242622 TERNA IT0003261697 AZIMUT HOLDING IT0003132476 ENI IT0004810054 UNIPOL IT0003497168 TELECOM ITALIA NL0011585146 FERRARI FR0000064578 COVIVIO IT0003549422 SANLORENZO IT0005162406 TECHNOGYM IT0001044996 DOVALUE IT0003115950 DE' LONGHI IT0003188064 BANCA IFIS IT0004967292 FILA IT0004998065 ANIMA HOLDING IT0005010423 CERVED GROUP IT0001415246 FINCANTIERI IT0004329733 CAIRO COMMUNICATION IT0005043507 OVS IT0005090300 INWIT IT0001207098 ACEA IT0004931058 MAIRE TECNIMONT IT0003007728 TOD'S IT0000784154 CATTOLICA ASSICURAZIONI IT0003027817 IREN IT0005282865 REPLY IT0005188336 EL EN IT0004053440 DATALOGIC IT0003097257 BIESSE IT0003497176 TELECOM ITALIA RSP IT0001049623 IMA IT0003697080 GEOX IT0001063210 MEDIASET IT0005322612 IGD - IMMOBILIARE GRANDE DISTRIBUZIONE IT0001078911 INTERPUMP GROUP IT0003428445 MARR IT0001137345 AUTOGRILL IT0001157020 ERG IT0003153621 TAMBURI INVESTMENT PARTNERS IT0003073266 PIAGGIO & C IT0005218752 BANCA MONTE PASCHI SIENA IT0001469383 MONDADORI EDITORE IT0005319444 CREDITO VALTELLINESE IT0000784196 BANCA POPOLARE SONDRIO IT0003198790 FALCK RENEWABLES IT0000084027 ASTM IT0003865570 SALINI IMPREGILO IT0005395071 ZUCCHI IT0003365613 FIERA MILANO IT0005359192 ILLIMITY BANK
- Participants and Markets
- Prospectuses and take over bids documents
Statistics and analysesConsob resolutions
- Orders to cease infringement of article 18 of Consolidated Law on Finance offering or carrying out investment services or activities through the Internet without being qualified
- Short selling prohibitions
- Offering prohibitions and suspensions
- Prohibitions pursuant article 7-quater, paragraph 4 of the Consolidated Law on Finance
- Be aware of fraud!