Resolution no. 21089

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 website https://4xroyal24.com

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 website https://4xroyal24.com, it emerged that:

i. thewebsite https://4xroyal24.com is also available in Italian;

ii. the website https://4xroyal24.com offers the potential investor, after opening an account via the registration procedure that is also available to the Italian user, the possibility to tradeon CFDs, indexes and commodities;

iii. in order to perform trading transactions, a investment of money is required, through the payment of sums on the account opened online; in particular, there are three types of account named, depending on the minimum deposit required and of the benefits envisaged, "Micro", "Standard", "Premium" and "VIP";

iv. in the page entitled “Company Information” the company 4X Royal Ltd is mentioned and in the document named "Privacy and Policy" there is a similar reference to this company. In the page dedicated to the contacts there is an indication of three addresses, one in London, one in Zurich and one in Singapore. At the bottom of each page of the websiteit is also indicated that "Services displayed in this website are provided by Redal Ltd";

HAVING REGARD to CONSOB Resolution No. 21022 of July 31, 2019 with which the company 4X Royal Ltd was ordered to cease the infringement of art. 18 of the TUF put in place through the separate website https://4xroyal.com;

HAVING CONSIDERED that, in addition to using a domain that partially overlaps with that of the aforementioned websitehttps://4xroyal.com, the website https://4xroyal24.com blatantly replicates the content and the graphic format of the same website https://4xroyal.com;

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 website https://4xroyal24.com are still ongoing and are directed towards Italian investors, insofar as the website is also available in Italian;

HAVING CONSIDERED that the companies mentioned on the website are not authorised to provide investment services to the Italian public, insofar as these entities are not registered on the dedicated register held by CONSOB pursuant to art. 20 of the Consolidated Law on Finance,

HAVING CONSIDERED that the provision of investment services and activities is reserved for authorised entities as referred to under Article 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 involving financial instruments to the Italian public, in infringement of art. 18, para. 1, of the Consolidated Law on Finance;

HAVING CONSIDERED 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 performs investment services or activities through the Internet without due authorisation pursuant to this decree: […] b) order to cease the infringement";

HAVING CONSIDERED, therefore, that it is necessary to immediately adopt this resolution as, in light of the above findings and considerations, there are justified 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 website https://4xroyal24.com, consisting of the provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of those whom it concerns and will be 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.

September 25, 2019

THE CHAIRMAN
Paolo Savona