Resolution no. 20835

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 Art. 18 of the Consolidated Law on Finance performed via the www.brokerz.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 www.brokerz.com website, it emerged that:

i. The www.brokerz.com website, which is active and drawn up in English, has an area reserved for registered users that 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 foreign exchange market (FOREX), cryptocurrencies and CFDs;

iii. in order to carry out trading transactions, an investment of money is required, to be paid into an account opened online;

iv. at the bottom of the pages of its 'Business Info' and 'High Risk warning' sections, the www.brokerz.com website mentions the 'All Media Eood' company, with office in Bulgaria, and the Brokerz Ltd company;

v. the said website displays the 'support@brokerz.com' email address and the '+442080683493' phone number.

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 aforementioned operations performed via the www.brokerz.com website are directed towards Italian investors, insofar as: (a) the reserved area of the said website, from which the user can deposit money into their online account and issue purchase and/or sale orders for financial instruments, is also available in Italian; (b) telephone and email communications with potential investors are in Italian; (c) the information documents about the activity carried out via the said website

and sent via emailto potential investors is in Italian;

HAVING CONSIDERED that the entities mentioned in the website are not authorised to provide investment services to the Italian public, insofar as they are not registered in 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 the qualified subjects referred to in 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 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 performed via the www.brokerz.com website, consisting of the offering and 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 27, 2019

THE DEPUTY CHAIRMAN
Anna Genovese