Consob resolution no. 20827 of February 20, 2019 - CONSOB AND ITS ACTIVITIES
resolution
Resolution no. 20827
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://capital4bank.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 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 the https://capital4bank.com website, it emerged that:
i. The https://capital4bank.com website, registered under the name of the 'Solid Wealth Limited' company, with offices in the Marshall Islands, is also available in Italian;
ii. the potential investor, after registration to the said website and opening an account via a specific online form, has the opportunity to trade in the currency market (FOREX), indexes, commodities and CFDs through the MT4 platform;
iii. in order to carry out trading transactions, an investment of money is required, to be paid into the account opened online;
iv. the website states that 'capital4bank.com is a trade name operated by Capital Com Investment LTD' with office in St. Vincent and the Grenadines;
v. the “'Terms & Conditions' section shows the 'support@capital4bank.com' email address
HAVING CONSIDERED that the activity 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 described operations, carried out through the https://capital4bank.com website, is directed towards the public of the Italian investors because: a) the said website is available in Italian, b) communications via telephone and emailwith potential investors are in Italian, c) the contractual documentation and information concerning the operations carried out though the aforementioned website are in Italian;
HAVING CONSIDERED that the entity indicated on the website 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 REGARD TO the fact that the provision of investment services and activities is reserved for authorised entities as referred to under Art. 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, therefore, 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 REGARD TO the fact that, according 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 to do so 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:
To order the discontinuation of the infringement of Art .18 of Legislative Decree no. 58/1998 also performed via the https://capital4bank.com, 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 service.
February 20, 2019
THE DEPUTY CHAIRMAN
Anna Genovese