Resolution no. 22178

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 domains https://server.eurotrade.uk.com and https://eurotrade.uk.com

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, it emerged that:

i. the domain https://server.eurotrade.uk.com redirects to a page that can be viewed in Italian, which contains a registration form and two links;

ii. after registration, users are granted access to the reserved area of the website https://server.eurotrade.uk.com, which hosts a platform for online trading for CFDs on currencies and cryptocurrencies;

iii. in order to carry out trades, users must open an account and deposit the necessary funds. Specifically, the minimum deposit required is 200 USD;

iv. the links on the website https://server.eurotrade.uk.com allow visitors to view the contractual terms and privacy policy of the site;

v. the additional website https://eurotrade.uk.com redirects to another page, which is not available in Italian, which promotes a platform for online trading of CFDs on currencies and cryptocurrencies. The page contains some links ("TRADE", "LOGIN/SIGNUP" and "Register Now") that redirect to the described site https://server.eurotrade.uk.com;

vi. the domains https://server.eurotrade.uk.com and https://eurotrade.uk.com mention the brand "Eurotrade".

WHEREAS the activity carried out through the domains https://server.eurotrade.uk.com and https://eurotrade.uk.com is deemed to constitute 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 wherein it is possible to perform buy/sell orders on financial instruments;

WHEREAS the above activity, carried out through the websites https://server.eurotrade.uk.com and https://eurotrade.uk.com, is still ongoing and is also aimed at Italian investors, insofar as the website https://server.eurotrade.uk.com, to which users are redirected from the links contained in the page https://eurotrade.uk.com, can be viewed in Italian;

WHEREAS the company "Eurotrade", which appears to own the websites https://server.eurotrade.uk.com and https://eurotrade.uk.com, is not authorised to provide investment services to the Italian public, since it is not listed on 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 for licensed parties as referred to under article 18, paragraph 1, of the Consolidated Law on Finance, pursuant to which "The commercial 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 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 58/1998 carried out through the websites https://server.eurotrade.uk.com and https://eurotrade.uk.com, consisting in the offering and provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of the concerned parties and published in the Consob Bulletin.

This measure may be appealed before the Regional Administrative Court of Lazio within 60 days.

27 January 2022

THE CHAIRMAN
Paolo Savona