Resolution no. 20888

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.capmbit.co and https://capitalmarketsbanc.co 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.capmbit.co website, it emerged that:

i. the www.capmbit.co website is also available in Italian;

ii. the said website, registered in the name of 'Joshua Development Ltd' with office in Dominica, offers, after opening an account and depositing the relevant funds, the opportunity to trade in Forex, commodities and shares via the MT4 platform;

iii. by subscribing to the www.capmbit.com website, the user can access the Trading area via a link that directs to the capitalmarketsbanc.com domain;

iv. the capitalmarketsbanc.com website states that 'the website is operated by Joshua EOOD Partners' with office in Bulgaria;

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

vi. the 'Contact us' section of the www.capmbit.co website there displays an email address specific for Italian clients (support.it@capmb.co) as well as an Italian telephone number.

HAVING REGARD to Resolutions nos. 20330 of March 7, 2018, and 20482 of June 12, 2018, with which CONSOB pursuant to art. 7-octies of Consolidated Law on Finance ordered to cease the discontinuation of Art. 18 of the Consolidated Law on Finance put in place through the www.capmb.com, www.capmbeu.com, www.capmbit.com, www.capitalmbit.com websites and the https://my.capitalmarketbanc.com webpage, which all operate under the commercial name 'Capital Markets Banc' and can also be attributed, inter alia, to the Joshua Development Ltd and Joshua Eood Partners companies;

HAVING CONSIDERED that the activity at issue - still carried out thorough the aforesaid websites - qualifies 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, still available on the www.capmbit.co and capitalmarketsbanc.co websites, are addressed to the Italian investing public, insofar as the said websites are also available in Italian;

HAVING CONSIDERED that the said websites cannot be attributed to entities authorised to the provision of investment services and activities in Italy,

since the Joshua Development Ltd and Joshua Partners EOOD companies are not included in the register kept 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 that the operations in question qualify 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: 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';

CONSIDERING it therefore necessary in the light of the foregoing to immediately and urgently adopt this Resolution;

HEREBY RESOLVES:

The order is issued to cease the infringement of Art. 18 of Legislative Decree no. 58/1998 performed through the www.capmbit.co and https://capitalmarketsbanc.co 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 the CONSOB Bulletin.

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

April 10^th, 2019

THE CHAIRMAN
Paolo Savona