Resolution no. 22307

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 via the website https://5markets.co and the respective webpage https://webtrader.5markets.cc

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 24th February 1998 ("Consolidated Law on Finance") and subsequent amendments and supplements;

HAVING ESTABLISHED that, from checks on the web, it emerged that:

i. the website https://5markets.co – which is active and registered anonymously – offers potential investors the opportunity to trade CFDs on currencies, indices, commodities and shares through the platform available at the address https://webtrader.5markets.cc;

ii. in order to place such trades, users must register with the https://5markets.co website – through a procedure that is also available for Italian users – open a trading account and deposit the necessary funds;

iii. in particular, the website https://5markets.co advertises nine types of account, according to the minimum deposit required and the benefits offered, referred to as "Student", "Pro", "Pro+", "Professional", "Expert", "10+", "Business", "Platinum" and "Luxury"

iv. as regards ownership, the footer of the website https://5markets.co states that "this website is owned and operated by Uncanny Services LLC", with reported registered offices in Saint Vincent and Grenadines;

WHEREAS the activity carried out through the https://5markets.co website and relevant https://webtrader.5markets.cc webpage constitutes the provision of investment services, as referred to in article 1, paragraph 5, of the Consolidated Law on Finance, insofar as users are offered the opportunity through the aforementioned domains to open a trading account and place orders to buy and/or sell financial instruments;

WHEREAS the aforementioned activity, carried out through the website https://5markets.co and the relevant page https://webtrader.5markets.cc, is still ongoing and is aimed at Italian investors, since there have been reports of cold calling of Italian retail investors by parties acting on behalf of these websites and moreover complaints have been received from Italian savers regarding these websites;

WHEREAS Uncanny Services LLC, with its stated registered address in Saint Vincent and the Grenadines, is not authorised to provide investment services to the Italian public, since it does not appear 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 to authorised 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://5markets.co website and its https://webtrader.5markets.cc webpage, consisting in offering and providing 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 of the date of service.

21 April 2022

THE CHAIRMAN
Paolo Savona