Resolution no. 20440

Order, pursuant to Art. 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 performed through the www.trade12.com website

LA COMMISSIONE NAZIONALE PER LE SOCIETA' 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 ('Consolidated Law on Finance) and subsequent amendments and additions;

HAVING ESTABLISHED that, from checks on the www.trade12.com website, it emerged that:

i. the www.trade12.com website, registered in anonymous form by a user whose identity is not known, is also available in Italian and indicates several telephone numbers, including one dedicated to Italian investors ('+18556248988');

ii. the potential investor, after the registration to the said website and the opening of an account via a specific form available online, has the opportunity to trade on the FOREX market and in CFDs, having as their underlying assets indexes, shares and commodities, through the MT4 web platform;

iii. in order to carry out trading transactions, an investment of money is required to be paid into an account opened online. In particular, are offered on the said website different types of account, namely 'Beginner', 'Trader', 'Expert' and 'VIP', which differ mainly for the amount of the minimum deposit required and the benefits;

iv. in the 'Contact Us' section and at the footer of several pages of the said website is mentioned the Exo Capital Markets Ltd company;

HAVING ESTABLISHED that the activities also carried out also via the said website can be classed as the provision of investment services referred to in 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 involving financial instruments can be issued;

HAVING CONSIDERED that the aforementioned operations performed via the www.trade12.com website are directed to Italian investors, insofar as the said website is also available in Italian and has no blocking mechanism in place to prevent the registration of Italian users;

HAVING CONSIDERED that Exo Capital Markets Ltd is not authorised to provide investment services to the Italian public, insofar as it is not registered on the register held by CONSOB pursuant to Art. 20 of the Consolidated Law on Finance;

HAVING CONSIDERED that the provision of investment services and activities is reserved to authorised entities as referred to under Article 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 therefore that the operations in question can be classed 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, according 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 therefore 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 cease the infringement of Art .18 of Legislative Decree no. 58/1998 also performed via the www.trade12.com website, consisting of the provision of 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.

15 May 2018

THE CHAIRMAN
Mario Nava