Resolution no. 21386

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.cobra-cfd.biz

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 www.cobra-cfd.biz website, it emerged that:

i. potential investors are offered the opportunity, through the www.cobra-cfd.biz website, which is 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 relating to currencies and shares;

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

iii. as to traceability, at the bottom of the website pages and in the "Terms and Conditions" it says that "CobraCFD is owned and operated by CobraCFD Ltd" with its registered address in the Marshall Islands. The same company is also indicated in the "Contact Us" section of the website;

HAVING REGARD TO resolution no. 21030 of 3 September 2019, which ordered the companies CobraCFD Ltd and Kings Power Ltd to cease the infringement of article 18 of the Consolidated Law on Finance conducted through the separate www.cobracfd.com website;

Likewise, HAVING REGARD TO resolution no. 21143 of 13 November 2019, which ordered the same company CobraCFD Ltd to cease the infringement of article 18 of the Consolidated Law on Finance carried out through the distinct www.c0bracfd.com website and through the relative version also available in Italian by redirecting users to the separate www.cobracfd.biz/it site;

WHEREAS, in addition to using a domain that is partially superimposable on the domain of the aforementioned www.cobracfd.com, www.c0bracfd.com and www.cobracfd.biz/it websites, the www.cobra-cfd.biz website replicates the content and graphic format of the said www.cobracfd.com, www.c0bracfd.com and www.cobracfd.biz/it websites;

WHEREAS the activity carried out through the website www.cobra-cfd.biz 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 www.cobra-cfd.biz website, are still ongoing and are aimed at Italian investors, insofar as the website is also available in Italian;

WHEREAS CobraCFD Ltd, with its registered address in the Marshall Islands, mentioned on the www.cobra-cfd.biz website, is not authorised to provide investment services to the Italian public insofar as it does not appear 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 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 art. 18 of Legislative Decree no. 58/98 performed through the website www.cobra-cfd.biz consisting of the offering and 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.

May 27, 2020

THE CHAIRMAN
Paolo Savona