Resolution no. 21549

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://www.ctxholdings.com website

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://www.ctxholdings.com website, it emerged that:

i. the website is active and also available in Italian;

ii. the website offers potential investors the opportunity to trade in currency, share, index and commodity-related CFDs;

iii. in order to trade, users must register for the website - using the registration procedure also available for users connected from Italy - and open an online account; specifically, the following types of account are available: “Mini”, “Standard”, “Bronze”, “Silver”, “Gold”, “Platinum”, “Black” and “VIP”, depending on the minimum deposit required and the benefits promised;

iv. as to traceability, it states at the bottom of the webpage and in the “Terms and Conditions” section that "this website is owned and operated by Golden Dawn (IT)", with its registered office in Hungary;

WHEREAS the activity carried out through the https://www.ctxholdings.com website can be classed as the provision of investment services as referred to in art. 1, paragraph 5, of the Consolidated law on Finance, as clients are offered the possibility to open a trading account on which it is possible to issue purchase and/or sale orders relating to financial instruments;

WHEREAS the above-described operations, carried out through the https://www.ctxholdings.com website, are still ongoing and aimed at Italian investors since the site is also available in Italian, and contact activities have been reported for the same website using unauthorised telephone solicitation techniques (so-called "cold calling") to the Italian public;

WHEREAS the company Golden Dawn (IT), with registered office in Hungary, mentioned on the https://www.ctxholdings.com website, is not authorised to provide investment services to the Italian public, insofar as not listed in the register maintained 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 Italian Investment 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://www.ctxholdings.com website, consisting in 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.

21 October 2020

THE CHAIRMAN
Paolo Savona