Resolution no. 21222

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 www.ftefxpro.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 www.ftefxpro.com, it emerged that:

i. potential investors are offered the opportunity, through the website www.ftefxpro.com, also available in Italian, subject to prior opening of an account via the registration process which is also available to Italian users, to trade, inter alia, CFDs with currencies and other assets as their underlying assets;

ii. in order to be able to trade, a cash investment is required to be paid into an account opened online;

iii. the website www.ftefxpro.com has been found to be linked to the non-EU company Ace Capital Ltd: the home page states that “Ftefx is run by Ace Capital Ltd, with registration number 25324 a.C. 2019 (c/o Suite 305, Griffith Corporate Center, Beachmont, Box 1510 Kingstown, St. Vincent and the Grenadines)” and in the contractual terms and conditions said company is indicated as sole counterparty, and as the registrant of the site;

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, performed through the website www.ftefxpro.com, are still ongoing and are aimed at Italian investors insofar as the website is available in Italian and also there have been reports by potential customers of unsolicited telephone calls (so-called 'cold calling') to the Italian public;

WHEREAS the company Ace Capital Ltd, with its registered address in St. Vincent and the Grenadines, as mentioned on the website, is not authorised to provide investment services to the Italian public, insofar as it is not enrolled on the 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 that the infringement cease';

CONSIDERING it 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 carried out through the website www.ftefxpro.com, consisting in the execution and offering 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.

January 23, 2020

THE CHAIRMAN
Paolo Savona