Resolution no. 20304

Order, pursuant to Art. 7-octies, para. 1, letter b), of Legislative Decree no. 58/1998 (Consolidated Law on Finance) to discontinue the infringement of Art. 18 of the Consolidated Law on Finance performed via the www.toroption.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 June 7, 1974, and subsequent amendments and additions;

HAVING REGARD TO Legislative Decree no. 58 of February 24, 1998, and subsequent amendments and additions (Consolidated Law on Finance);

HAVING ESTABLISHED that, from checks of the www.toroption.com website, undertaken on January 16, 2018, it emerged that:

i. the www.toroption.com website is found to include translation into Italian;

ii. the 'Contact' page includes an Italian telephone number ('+390694809770') and an email address ('support.it@toroption.com') specifically intended for Italian users;

iii. potential investors can trade binary options, Forex and CFDs via a dedicated platform, subject to prior registration on the said website and opening an account via a special on-line form;

iv. the 'Terms and Conditions' section includes the words: 'Although the customer is entering in an agreement with Titanium Tech Solutions Limited, with license and company number 14694, Smart Choice Zone LP is taking liability for complains where End Users have deposited money '; it also states that 'These Terms and any relationship between the Company and the Client shall be governed by law applicable in Marshall Islands';

v. the www.toroption.com website and the services it offers are, therefore, attributable to the Titanium Tech Solutions Limited and Smart Choice LP companies.

HAVING ESTABLISHED, furthermore, from the information available, that individuals operating in the name of 'Toroption' have contacted Italian savers by telephone for the purpose of persuading them to open an account and trade on the aforementioned website;

HAVING ESTABLISHED to this regard that Titanium Tech Solutions Limited and Smart Choice LP use methods of contact and interaction, including direct ones, with Italian clients via the aforementioned website, providing instructions on the procedures and operations to be followed for the purpose of investing in financial instruments;

HAVING CONSIDERED that the aforementioned operations performed via the www.toroption.com website are directed towards Italian investors, insofar as the said website is written in Italian, has no mechanism in place to prevent the registration of Italian users and includes indication of contact details specifically intended for Italian clients;

HAVING ESTABLISHED that the activity performed via the website in question can be identified as the provision of investment services, pursuant to Article 1, para. 5 of the Consolidated Law on Finance, insofar as clients are offered the opportunity to open a trading account on which purchase and/or sale orders for financial instruments can be issued;

HAVING CONSIDERED that the provision of investment activities and services is reserved for authorised entities as referred to under Art. 18, para. 1 of the Consolidated Law on Finance, pursuant to which 'The professional provision of investment services and activities for the public is reserved for investment firms and banks';

HAVING ESTABLISHED that Titanium Tech Solutions Limited and Smart Choice LP are not authorised to provide investment services to the Italian public, insofar as they are non-EU companies not included in the special register of authorised investment firms and companies of non- EU countries held by CONSOB pursuant to Art. 20 of the Consolidated Law on Finance held by CONSOB pursuant to Art. 20 of the Consolidated law on Finance,

HAVING ESTABLISHED that the operations in question can be identified as the professional provision to the Italian public of investment services involving financial instruments, performed in infringement of Art. 18, para. 1 of the Consolidated Law on Finance;

HAVING CONSIDERED that, according to that outlined under Art. 7-octies of the Consolidated Law on Finance - 'Powers to counteract abuse' - CONSOB 'may, with regard to anyone who offers or carries out investment services or activities through the Internet without being qualified therefor pursuant to this decree:

1. make public, even by way of a precaution, the circumstance that the party is not authorised to carry out the activity indicated by article 1, paragraph 5;

2. order that the infringement cease'';

HEREBY RESOLVES:

The order is issued to discontinue the infringement of Art. 18 of Legislative Decree no. 58/1998 implemented via the www.toroption.com website, consisting of the provision of investment services and activities to the Italian public.

This resolution shall be brought to the attention of those concerned and published in CONSOB's Bulletin.

Appeal against this provision is permitted before the Regional Administrative Court of Lazio within 60 days from the date of notification.

14 February 2018

THE DEPUTY CHAIRMAN
Anna Genovese