Resolution no. 21269

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 carried out through the website https://royalbanc.io

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 supplements;

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

HAVING ESTABLISHED that, from checks on the website https://royalbanc.io, it emerged that:

i. potential investors are offered the opportunity, through the website https://royalnbanc.io, also available in Italian, subject to prior opening of an account via the registration process which is also available to Italian users, to trade CFDs with currencies and shares 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. In particular, the website offers four types of account called 'Standard', 'Silver', 'Gold', and 'VIP', depending on the minimum deposit required and the benefits promised;

iii. as for the links to the site in question, the brand “RoyalBanc” is often generally used and an address in Luxembourg is stated. The website also contains two emailaddresses specifically referring to Italy;

WHEREAS the activity carried out through the website https://royalbanc.io can be classed as the provision of investment services as referred to in Article 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 activity, performed through the https://royalbanc.io website, is still ongoing and is aimed at Italian investors, since the website is also available in Italian, contains two email addresses specifically referring to Italy and there have been reports of cold calling members of the public in Italy;

WHEREAS "RoyalBanc", mentioned on this website, is not authorised to provide investment services to the Italian public, since it does not appear 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, 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 through 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 performed through the website https://royalbanc.io, consisting in offering and providing 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.

February 19, 2020

THE CHAIRMAN
Paolo Savona