Newsletter - CONSOB AND ITS ACTIVITIES
Newsletter
News of the week:
Watch for scams! Financial fraud: Consob blacks out 5 more unauthorised websites
Bond issues: shorter timeframes, cost-cutting and requests in English. These are the latest changes from Consob regarding prospectuses
New guidelines from ESMA on the recovery and resolution of central counterparties (CCPRRRs), OTC derivatives, central counterparties and trade repositories (EMIR)
Commission decisions
Consob has ordered the black-out of 5 new websites that offer financial services illegally.
The commission availed itself of the new powers resulting from the "Decreto Crescita" ("Growth Decree"; Law no. 58 of 28 June 2019, Article 36, paragraph 2-terdecies), on the basis of which Consob can order internet service providers to block access from Italy to websites offering financial services without the proper authorisation.
Below are the sites Consob has ordered to be blacked out:
- Tcrinvest (https://tcrinvest.net website and its https://account.tcrinvest.net and https://trading.tcrinvest.net pages).
- Interactive (www.intr-active.com website and its https://intr-active.solutions and https://clientportalpage.intr-active.com pages);
- Capitalwealthmanagement.co (website www.capitalwealthmanagement.co and its page https://clientzone.capitalwealthmanagement.co);
- BGB Partners (https://bgbpartners.cm website and its https://client.bgbpartners.cm and https://webtrader.bgbpartners.cm pages)
- FDXCrypto (https://colmex247.io website and its https://client.colmex247.io and https://webtrader.colmex247.io pages).
The number of sites blacked out since July 2019, when Consob was given the power to order the black-out of websites of fraudulent financial intermediaries, has thus risen to 1029.
The measures adopted by Consob can be consulted on the website www.consob.it.
The black-out of these websites by internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.
Consob draws investors’ attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviours, essential to safeguard one’s savings: these include, for websites that offer financial services, checking in advance that the operator with whom you are investing is
authorised and, for offers of financial products, that a prospectus has been published.
Please note, there is a section on the homepage of the www.consob.it website, entitled "Watch for Scams!", which provides useful information warning investors about fraudulent financial schemes.
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Consob has also prohibited, pursuant to Article 99, paragraph 1, letter c) of Italian Legislative Decree 58/1998 ("Consolidated Law on Finance"), the offering to the public residing in Italy of investments of a financial nature promoted by Digital Trust CSP Fzco, including via the www.doublefinance.io website (resolution no. 23011 of 20 February 2024). The offer had already been suspended as a precautionary measure with resolution no. 22900 of 22 November 2023.
Shorter timeframes, cost-cutting and requests for approval in English as well: these are the three main changes from Consob regarding prospectuses for bond issues.
The innovations are part of a broader effort to streamline and simplify regulatory requirements that Consob continues to develop with the aim of improving the attractiveness of the Italian financial market, whilst at the same time maintaining safeguards to protect savers and investors. The initiative meets the expectations of market participants and reduces the burden on them.
To ensure greater certainty regarding the timing of the investigation process, in line with European best practices, Consob's offices will provide initial informal feedback within two working days of receiving the request for approval, on the main issues that may arise from an overall check on the draft prospectus. The request for additional information will normally be formalised within six working days from submission of the request for approval of the prospectus, which is reduced to five working days for offers aimed at institutional investors (see Notice of non-equity prospectuses' scrutiny times).
With regard to costs, the supervisory contributions in force since last January have been significantly reduced, both for offers aimed at institutional investors and for those aimed at retail savers. In the first case, the amounts are no longer variable based on the value of the offer, but fixed, predetermined and known in advance. In the second case, the variable amount in relation to the value of the offer is halved compared to 2023, also providing for a lower maximum ceiling.
The use of English, already permitted in Italy for prospectuses, is now also extended to requests for approval of prospectuses, which may be submitted, using standard formats in line with common practices throughout the EU. The resolution amending the Issuers' Regulation was published on 20 February, after the consultation with the market on these issues was closed on 29 January.
In this respect, operators are reminded of the usefulness of applying the Guidelines for the simplification of prospectuses, recently issued by the Committee of Market Operators and Investors (COMI) set up at Consob.
Furthermore, other changes aimed at reducing approval times for prospectuses are coming soon.
In fact, Consob will launch a public consultation, to submit the idea to the market's attention, of attributing the final act of approval of prospectuses and any supplements to the competent offices themselves and no longer to the Commission, thereby further shortening the authorisation process.
Consob and the Bank of Italy, as the competent Authorities for the supervision of the Italian central counterparties, comply with the "Guidelines on the consistent application of the conditions for using early intervention measures (Article 18, paragraph 8 of the CCPRRRs)", the "Guidelines on the application of situations in which a central counterparty should be considered to be in serious difficulties or at risk of collapsing (Article 22, paragraph 6 of the CCPRRRs)" and the "Guidelines laying down further specifications for temporary restrictions in the event of a significant event other than a breach pursuant to Article 45 bis of the EMIR", issued by the European Securities and Markets Authority (ESMA), by incorporating them into their respective supervisory practices (Consob Notice of 20 February 2024).
- The marketing in Italy of the units of the unreserved, closed-end, AIF (alternative investment fund) "FAI Private Markets Insight Fund II" has been authorised, pursuant to Article 44 of Italian Legislative Decree no. 58/1998, operated by Fideuram SGR Spa (decision of 20 February 2024).
-The supplement to the registration document of Banco Bpm Spa, approved on 8 June 2023, drawn up pursuant to Article 10, paragraph 1, and 23 of Regulation (EU) 2017/1129 has been approved (decision of 20 February 2024).
- Innexta Scrl, based in Milan, has been authorised pursuant to Article 4-sexies.1 of Italian Legislative Decree no. 58/1998 and Article 12 of Regulation (EU) 2020/1503, as a crowdfunding service provider to provide the crowdfunding service referred to in Article 2, paragraph 1, letter a), sub ii), of Regulation (EU) 2020/1503 consisting in the placement without an irrevocable commitment and the receipt and transmission of client orders relating to securities and instruments admitted for crowdfunding purposes issued by project owners or special purpose vehicles (resolution no. 23015 of 20 February 2024).
WeAreStarting Srl, based in Bergamo, has been authorised pursuant to Article 4-sexies.1 of Italian Legislative Decree no. 58/1998 and Article 12 of Regulation (EU) 2020/1503, as a crowdfunding service provider to provide the crowdfunding service referred to in Article 2, paragraph 1, letter a), sub ii), of Regulation (EU) 2020/1503 consisting in the placement without an irrevocable commitment and the receipt and transmission of client orders relating to securities and instruments admitted for crowdfunding purposes issued by project owners or special purpose vehicles (resolution no. 23014 of 20 February 2024).
Order, pursuant to art. 7-octies, letter b) of Italian Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance) to cease infringement of art. 18 of Consolidated Law on Finance, put in place by:
- Tcrinvest via the https://tcrinvest.net website and its https://account.tcrinvest.net and https://trading.tcrinvest.net pages (resolution no. 23017 of 20 February 2024);
- Interactive via the www.intr-active.com website and its https://intr-active.solutions and https://clientportalpage.intr-active.com pages (resolution no. 23021 of 20 February 2024);
- Capitalwealthmanagement.co via the www.capitalwealthmanagement.co website and its https://clientzone.capitalwealthmanagement.co page (resolution no. 23019 of 20 February2024);
- BGB Partners via the https://bgbpartners.cm website and its https://client.bgbpartners.cm and https://webtrader.bgbpartners.cm pages (resolution no. 23020 of 20 February 2024);
- FDXCrypto via the https://colmex247.io website and its https://client.colmex247.io and https://webtrader.colmex247.io pages (resolution no. 23018 of 20 February 2024).