Consob's Resolution n. 21020

Order, pursuant to art. 7-octies, par. 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.trade100.fm 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 7 June 1974 and subsequent amendments and additions;

HAVING REGARD TO Legislative Decree no. 58 of 24 February 1998 (‘Consolidated Law on Finance') and subsequent amendments and additions;

HAVING ESTABLISHED that, from checks on the www.trade100.fm website, it emerged that:

i. the www.trade100.fm website is also available in Italian;

ii. via the website www.trade100.fm, subject to opening an account via the registration procedure, which is also available to Italian users, potential investors are offered the opportunity to trade, inter alia, on the Forex in currency pairs, futures and shares;

iii. in order to perform trading transactions, a investment of money is required, by paying sums into an account opened online; in particular, there are three categories of account, namely ‘Real', ‘Demo' and ‘Islamic'; the ‘Real' category includes the ‘base', ‘gold' and ‘platinum' accounts;

iv. the company Level Up Capital Ltd, is indicated at the bottom of the website pages, with registered address in the Marshall Islands;

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.trade100.fm website are still ongoing and are directed towards Italian investors, insofar as the website is also available in Italian;

HAVING CONSIDERED that the company mentioned on this website is not authorised to provide investment services to the Italian public, insofar as it is not registered on the dedicated 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 qualify as the professional provision of investment services to the Italian public, in infringement of art. 18, paragraph 1 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that, according to the provisions of art. 7-octies of the Consolidated Law on Finance - ‘Powers to counteract abuse' - CONSOB ‘may, with regard to anyone who offers or performs investment services or activities through the Internet without due authorisation pursuant to this decree:

[…] b) order the cessation of the infringement';

CONSIDERING it therefore necessary, in the light of the foregoing, to adopt this resolution immediately for reasons of urgency;

HEREBY RESOLVES:

To order the cessation of the infringement of art .18 of Legislative Decree no. 58/1998 also performed via the www.trade100.fm 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 the CONSOB Bulletin.

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

July 31, 2019

THE CHAIRMAN
Paolo Savona