Resolution no. 21654

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://octaviotrade.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://octaviotrade.com website, it emerged that:

i. through the https://octaviotrade.com website, which is active and registered anonymously, investors are offered CFD trading opportunities relating to currencies and on shares;

ii. in order to carry out the above trading transactions, the user is asked to register with the https://octaviotrade.com website, open a trading account and spend sums of money;

iii. in particular, four types of accounts are mentioned on the https://octaviotrade.com website, referred to as “Mini”, “Standard”, “Gold” and “Vip”, depending on the minimum deposit required and the benefits promised;

iv. as regards traceability of the https://octaviotrade.com website, the “Terms and Conditions” section of the website states that “Octaviotrade” is the contractual counterparty of any user who registers with the above domain: stating that “these Terms and Conditions, together with all policies are an inseparable part of a binding agreement between me and Octaviotrade”;

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

WHEREAS the aforementioned activity, carried out through the https://octaviotrade.com website, is ongoing and targets the public of Italian investors, given that reports have been received of the solicitation of investments through remote communication techniques, including cold calling, addressed to Italian investors;

WHEREAS “Octaviotrade”, which is mentioned on the https://octaviotrade.com website, is not authorised to provide investment services to the Italian public, since it not listed in 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://octaviotrade.com website, consisting in offering 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.

18 December 2020

THE CHAIRMAN
Paolo Savona