Resolution no. 20553

Order, pursuant to Article 7-octies, paragraph 1, letter b), of Legislative Decree no. 58/1998 ('Consolidated Law on Finance') to discontinue the infringement of Article 18 of the Consolidated Law on Finance performed through the https://ava.investments 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 June 7, 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 ESTABLISHED that, from checks on https://ava.investments website, it emerged that:

i. the https://ava.investments website is also available in Italian;

ii. potential investors, after registering on the said website and opening an account by filling in a specific online form with their personal information, can trade in the FOREX market and CFDs via a dedicated online platform;

iii. in order to carry out trading transactions, an investment of money is required, through the payment of sums into the account opened online. in particular, the said website offers various types of account;

iv. the 'Terms and Conditions' section of the website, written in English, states that, 'this website is owned and operated by Bauman Ltd with registered address: Trust company complex, Ajeltake road, Ajeltake Islands, Majuro, Marshall Islands MH96960'. The Bauman Ltd company, which is found to be the entity that registered the website, is also mentioned in the homepage of the latter, which also displays the address at the Marshall Islands;

v. the https://ava.investments website and the services offered therein are therefore attributable to the Bauman Ltd company.

HAVING ESTABLISHED that the activities carried out via the said website can be classed as the provision of investment services as referred to in Art. 1, para. 5, of the Consolidated Law on Finance, insofar as clients are offered the opportunity of opening a trading account against which purchase and/or sale orders for financial instruments can be issued;

HAVING CONSIDERED that the aforementioned operations performed via the https://ava.investments website are directed towards Italian investors, insofar as the said website is written in Italian and is has no mechanism in place to prevent the registration of Italian users;

HAVING CONSIDERED that Bauman Ltd is not authorised to provide investment services to the Italian public, insofar as it is not registered on the register kept by CONSOB pursuant to Art. 20 of the Consolidated Law on Finance;

HAVING CONSIDERED that the provision of investment services and activities is reserved for authorised entities 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 are configured 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, according to that outlined under 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 therefor 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 discontinue the infringement of Art. 18 of Legislative Decree no. 58/1998 performed through the https://ava.investments website, consisting of the provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of those concerned and published in CONSOB's Bulletin.

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

August 2, 2018

On behalf of THE CHAIRMAN
Anna Genovese