Resolution no. 23626 of 2/7/2025

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://mgluxembourg.cm website and relative https://client.mgluxembourg.cm and https://webtrader.mgluxembourg.cm webpages

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, as subsequently amended and supplemented;

HAVING REGARD to Legislative Decree no. 58 of 24 February 1998 ("Consolidated Law on Finance"), as subsequently amended and supplemented;

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

i. potential investors are offered the opportunity, through the https://mgluxembourg.cm website – which is active, available in Italian and anonymously registered – to trade contracts on currencies, shares, commodities, indices and crypto-currencies via a trading platform;

ii. to place such trades, users must register with the https://mgluxembourg.cm website, through a process that is also available to users connecting from Italy, and open a trading account in which funds are deposited: specifically, six different types of accounts are advertised on the website ("Money Market", "Deposito Fisso" (Fixed Deposit), "Brokerage", "Pensionistico" (Pension), "Trust" and "Private Wealth") that differ from each other according to the permitted leverage. After registering, users gain access to the reserved area at the URL https://client.mgluxembourg.cm, where they can, among other things, deposit funds and access the trading platform on the URL address https://webtrader.mgluxembourg.cm;

iii. regarding traceability, the website https://mgluxembourg.cm contains generic references to "MGLuxembourg";

WHEREAS the activity carried out via the htttps://mgluxembourg.cm website and its pages https://client.mgluxembourg.cm and https://webtrader.mgluxembourg.cm 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 via 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 https://mgluxembourg.cm website and its https://client.mgluxembourg.cm andhttps://webtrader.mgluxembourg.cm webpages is still ongoing and is aimed at Italian investors, insofar as said domains are available in Italian, there have been reports of contact between "MGLuxembourg" operators and Italian clients, and no mechanism was found to block registration by users attempting to register with the website from Italy through Italian IP addresses, with complaints received from Italian investors;

WHEREAS the https://mgluxembourg.cm website and its pages https://client.mgluxembourg.cm and https://webtrader.mgluxembourg.cm are not attributable to any entity authorised to provide investment services to the Italian public;

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 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 activities in question qualify as the professional provision of investment services to the Italian public, in breach of Article 18, paragraph 1 of the Consolidated Law on Finance;

HAVING REGARD to the provisions of Article 7-octies, letter b) of the Consolidated Law on Finance - "Powers to counteract unauthorised provision of investment services" - pursuant to which 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 no. 58/98 carried out through the https://mgluxembourg.cm website and the https://client.mgluxembourg.cm and https://webtrader.mgluxembourg.cm webpages, 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.

THE CHAIRMAN
Paolo Savona