Resolution no. 20390

Order pursuant to Article 7-octies, paragraph 1, letter b), of Legislative Decree no. 58/1998 ("Consolidated Law on Finance") to discontinue the infringement performed via the http://62.100.206.237/~veniceinvestment/veniceinvestmentgroup.com/login.php webpage

LA COMMISSIONE NAZIONALE PER LE SOCIETA' 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 additions;

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

HAVING REGARD TO the "Communication for investor protection" published on CONSOB's website on April 26, 2016, with the following statement: "The National Commission for Companies and the Stock Exchange [Consob] reports that the company Venice Forex Investment Doo […] is not authorised to provide investment services or do business in Italy in any way, including through the website www.veniceforexinvestment.com";

HAVING REGARD TO, also, the "Communication for investor protection" published on CONSOB's website on March 13, 2017, with the following statement: "The National Commission for Companies and the Stock Exchange, CONSOB also reports that: the company Venice Investment Group Ltd is not authorised to provide investment services and business in Italy in any way, including through the website www.veniceinvestmentgroup.com";

FURTHERMORE, HAVING REGARD TO CONSOB's Resolution no. 20079/17 of July 20, 2017, published on CONSOB's website on September 22, 2017, concerning the application of a pecuniary administrative sanction against Mr Fabio Gaiatto, Director of Venice Investment Doo (formerly Venice Forex Investment Doo), and the latter as jointly and severally liable;

HAVING ESTABLISHED that from the checks carried out on the http://62.100.206.237/~veniceinvestment/veniceinvestmentgroup.com/login.php webpage it emerged that:

i. the said webpage, written in Italian, promotes a trading platform and, after the registration, it sends the user a contract called "Agency agreement for investment in IG platform" to be signed and returned via e-mail to info@veniceinvestmentgroup.com;

ii. the potential investor, after entering his/her personal data - including bank details - on a form activated by clicking the "Online contract" link and after forwarding his/her identity document and tax code, concludes registration to the aforementioned webpage and receives an e-mail from info@veniceinvestmentgroup.com; this e-mail , written in Italian, contains the aforementioned contract together with instructions for opening an "investment position" ;

iii. to open his/her " investment position", the user is required to pay money via bank transfer to Zagrebacka Banka, based in Pula;

iv. the said webpage is allegedly attributable to the Venice Investment Group Ltd company, with registered office in London, because on the footer it is stated that "The ownership and management of veniceinvestmentgroup.com belong to Venice Investment Group Ltd, an authorized company to provide services and / or investment activities" .

HAVING CONSIDERED that the analysis of the aforementioned contract shows that the activity in question, carried out also through the said webpage, can be classed as the provision of investment services referred to in Art. 1, para. 5, of the Consolidated Law on Finance as clients are offered asset and wealth management services;

HAVING CONSIDERED that the above described operations, also carried out through the webpage in question, is addressed to the public of Italian investors, as the said webpage is written in Italian;

HAVING CONSIDERED that the Venice Investment Group Ltd company, with alleged registered office in London, is not authorised to provide investment services to the Italian public, insofar as it is not registered on the register held by CONSOB pursuant to Art. 20 of the Consolidated Law on Finance;

HAVING CONSIDERED that the provision of investment services and activities is reserved to authorised subjects as referred to under Article 18, para. 1, of the Consolidated Law on Finance, pursuant to which "The professional provision of investment services and activities for the public is reserved for investment firms and banks";

HAVING ESTABLISHED that the operations in question can be classed as the professional provision of investment services involving financial instruments to the Italian public, in infringement of Art. 18, para. 1, of the Consolidated Law on Finance;

HAVING CONSIDERED that, pursuant to Art. 7-octies of the Consolidated Law on Finance - "Powers to counteract abuse" - CONSOB "may, with regard to anyone who offers or carries out investment services or activities through the Internet without being qualified therefore pursuant to this decree: a) make public, even by way of a precaution, the circumstance that the party is not authorised to carry out the activity indicated by article 1, paragraph 5; b) order that the infringement cease";

HEREBY RESOLVES:

The order is issued to cease the infringement of Art .18 of Legislative Decree no. 58/1998, also performed via the http://62.100.206.237/~veniceinvestment/veniceinvestmentgroup.com/login.php webpage, consisting in the provision of investment services and activities to the Italian public.

This Resolution shall be notified to those concerned and published in CONSOB's Bulletin.

This measure may be appealed with the Regional Administrative Court of Lazio within 60 days from the date of notification.

20 April 2018

THE DEPUTY CHAIRMAN
Anna Genovese