Resolution no. 20336

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 Article 18 of the Consolidated Law on Finance performed via the www.novuscm.com and www.novuscmit.com websites

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 on the www.novuscm.com and www.novuscmit.com websites, it emerged that:

1. by accessing the Italian version of the www.novuscm.com website one is automatically directed to the www.novuscmit.com website, which is in Italian;
2. the potential investor, after registration on the www.novuscmit.com website and opening an account via the appropriate form available online, can trade in Forex and CFDs and pairs of cryptocurrencies through MT4 platform;
3. in order to carry out the trading transactions, an investment of money is required, through the payment of sums into an account to be opened online. In particular, various types of account, i.e. "Micro", "Classic", "Silver", Gold" and "Platinum" are offered on the said website, which differ from each other mainly in the amount of the minimum deposit and the benefits; in particular, an "individual money and risk management plan" is offered with the Gold and Platinum accounts;
4. the "Velmon Enterprise Ltd" company , with declared registered office in the Marshall Islands, is indicated in the "Terms and Conditions" section and at the bottom of every page of the said website;
5. the www.novuscm.com and www.novuscmit.com websites and the services offered therein can therefore be attributed to Velmon Enterprise Ltd.

HAVING ESTABLISHED in this regard that Velmon Enterprise Ltd uses forms of contact and interaction, including immediate ones, with Italian clients through the aforementioned website, providing procedural and operational instructions for investing in financial instruments;

HAVING CONSIDERED that the above described operations, also carried out also via the www.novuscm.com and www.novuscmit.com websites, are directed to the Italian public, as the Italian version of the said website can be accessed from both the said domains and has no blocking mechanism in place to prevent Italian users from registering;

HAVING ESTABLISHED that the activities carried out also via the said websites can be classed as the provision of investment services pursuant to Art. 1, para. 5, of the Consolidated Law on Finance, insofar as clients are offered the opportunity to open a trading account against which purchase and/or sale orders for financial instruments can be issued;

HAVING REGARD to the fact that the provision of investment services and activities is reserved for the authorised subjects referred to 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 Velmon Enterprise Ltd, with declared registered office in the Marshall Islands, is not authorised to provide investment services to the Italian public since it is not included in the register of EU and non-EU investment firms and companies authorised to freely provide the said services in Italy directly or through branches in Italy, register which is held by CONSOB pursuant to Art. 20 of the Consolidated Law on Finance;

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

HAVING CONSIDERED that, pursuant to 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: a) 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; b) order that the infringement cease”;

HEREBY RESOLVES:

The order is issued to discontinue the infringement of Art. 18 of Legislative Decree no. 58/1998 performed also through the www.novuscm.com and www.novuscmit.com websites, consisting of offering investment services and activities to the Italian public.

This Resolution shall be notified to those concerned and published in CONSOB’s Bulletin.

This measure may be appealed with the Regional Administrative Court of Lazio within 60 days from the date of notification.

14 March 2018

THE DEPUTY CHAIRMAN
Anna Genovese