Resolution no. 21134

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://grandtrade.exchange

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 websitehttps://grandtrade.exchange, it emerged that:

i. potential investors are offered the opportunity through the website https://grandtrade.exchange, subject to prior opening of an account via the registration process, which is also available to Italian users, to trade in the Forex market and on indices, stocks and shares and cryptocurrencies;

ii. in order to trade a cash investment is required, to be paid into an account opened online; in particular, there are five types of account available - depending on the minimum deposit required and the benefits promised - called 'Silver', 'Gold', 'Platinum', 'Algo Fund' and 'VIP';

iii. only the brand name “Grand Trade Exchange” is indicated on the website https://grandtrade.exchange without any reference to a legal entity to which it is linked.

WHEREAS the activity carried out through this website can be classed as the provision of investment services as referred to in art. 1, paragraph 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;

WHEREAS the aforementioned transactions, carried out through the website https://grandtrade.exchange, are still ongoing and are aimed at Italian investors insofar as, although the website is not available in Italian, there have been reports of unsolicited telephone calls (so-called 'cold calling') to the Italian public;

WHEREAS the party indicated on the website is not authorised to provide investment services to the Italian public, insofar as it does not appear on the dedicated register kept by CONSOB pursuant to Article 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, paragraph 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, letter b) 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 over the Internet without being qualified pursuant to this decree: […] b) order the cessation of the infringement';

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

RESOLVES:

To order the cessation of the infringement of Article 18 of Legislative Decree no. 58/98 performed through the website https://grandtrade.exchange, consisting in 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.

November 6^th, 2019

THE CHAIRMAN
Paolo Savona