Resolution no. 20838

Order, pursuant to Article 7-octies, paragraph 1, letter b) of Legislative Decree no. 58/1998 ('Consolidated Law on Finance') to cease the infringement of Article 18 of the Consolidated Law on Finance performed through the www.mib700.net, www.mib-700.com, www.vix500.com and www.vix500.net websites

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.mib700.net, www.mib-700.com, www.vix500.com and www.vix500.net websites, it emerged that:

i. the aforementioned websites, registered anonymously, are also available in Italian;

ii. subject to prior registration to one of the said websites and opening an account through a registration procedure that is also available to Italian users, potential investors are offered the opportunity to trade online via a specific platform;

iii. in order to perform trading transactions, an investment of money is required, to be paid into the account opened online; in particular, various types of account are available that are named according to the minimum deposit to be made and the promised benefits;

iv. in the corresponding sections in the footer of the homepage of the said websites, as well as in their 'Terms and Conditions', a certain Blue Seal Limited company, with alleged office in Vanuatu, is mentioned and indicated as the entity to which the said websites would be attributable.

HAVING CONSIDERED that the activities performed via the said websites can be classed as the provision of investment services referred to in Art. 1, para. 5, of the Consolidated Law on Finance, insofar as clients are offered the opportunity to trading account against which they can issue purchase and/or sales orders of financial instruments;

HAVING CONSIDERED that the above described operations, carried out through the aforesaid websites, are aimed at the public of Italian investors, since the websites in question are also available in Italian and through them, operators of Blue Seal Limited also use forms of direct contact and interaction with Italian clients, providing procedural and operational instructions on how to invest in financial instruments;

HAVING CONSIDERED that the Blue Seal Limited company is not authorised to provide investment services to the Italian public, insofar as no entity under such a name is found in the specific 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 therefore pursuant to this decree : 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 performed through the www.mib700.net, www.mib-700.com, www.vix500.com and www.vix500.net websites, 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.

March 6, 2019

THE DEPUTY CHAIRMAN
Anna Genovese