Resolution no. 21538

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 https://the-premium-brokers.net website and its https://trader.secure.the-premium-brokers.net page

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 https://the-premium-brokers.net website, it emerged that:

i. potential investors are offered the opportunity through the https://the-premium-brokers.net website, which is also available in Italian, to trade CFDs relating to currencies and shares;

ii. in order to be able to trade, the user must register with the https://the-premium-brokers.net website through the registration procedure which is also available for Italian users, access their personal area available at the address https://trader.secure.the- premium-brokers.net and which may be consulted in Italian and then deposit a sum of money;

iii. as for the links to the site in question, at the bottom of the web pages there is a statement affirming that “This site is owned and operated by Premium Solutions Ltd”, with its registered office in the Marshall Islands; The same company is also mentioned in the “Terms and conditions” section of the https://the-premium-brokers.net website;

HAVING REGARD to Resolutions no. 21154 of 20 November 2019, no. 21262 of 12 February 2020 and no. 21321 of 7 April 2020, whereby Premium Solutions Ltd, based in the Marshall Islands, was ordered to cease its infringement of article 18 of the Consolidated Law on Finance conducted through the separate and distinct https://thepremiumbrokers.com, www.thepremiumbrokers.net websites, respectively, and its https://trader.secure.thepremiumbrokers.net page as well as the https://the-premium-brokers.com website;

WHEREAS, in addition to using a domain that is partially superimposable on the domains of the aforementioned https://thepremiumbrokers.com, www.thepremiumbrokers.net websites, the relative https://trader.secure.thepremiumbrokers.net web page as well as the https://the-premium-brokers.com site, the https://the-premium-brokers.net domain and its https://trader.secure.the-premium-brokers.net page replicate the content and graphic format of the said https://thepremiumbrokers.com, www.thepremiumbrokers.net websites and its https://trader.secure.thepremiumbrokers.net page as well as the https://the-premium-brokers.com site;

WHEREAS the activity carried out through the https://the-premium-brokers.net website and its https://trader.secure.the-premium-brokers.net page 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 activities, conducted through the https://the-premium-brokers.net website and its https://trader.secure.the-premium-brokers.net page, are still ongoing and are directed at Italian investors, given that the https://the-premium-brokers.net website and its https://trader.secure.the-premium-brokers.net page can also be consulted in Italian, and there have been reports of cold calling members of the Italian public;

WHEREAS Premium Solutions Ltd, with its registered address in the Marshall Islands, mentioned on the https://the-premium-brokers.net website and its https://trader.secure.the- premium-brokers.net page, 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 to licensed parties as referred to under article 18, paragraph 1, of the Consolidated Law on Finance, pursuant to which, 'The professional provision of investment services and activities to the public is reserved to Stock brokerage firms, EU investment firms, Italian banks, EU banks and non-EU firms';

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 article 7-octies, letter b) of the Consolidated Law on Finance - 'Powers to counteract abusive practices' - CONSOB 'may, with regard to anyone who offers or carries out investment services or activities over the Internet without being qualified to do so pursuant to this decree: […] b) order the cessation of the infringement';

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 https://the-premium-brokers.net website and its https://trader.secure.the-premium- brokers.net page, 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.

15 October 2020

THE CHAIRMAN
Paolo Savona