Resolution no. 21220

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 performed through the websites https://localtrader.app/?lp=10 and https://libramarkets.com

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 and subsequent amendments and additions;

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

HAVING ESTABLISHED that, from checks on the website https://localtrader.app/?lp=10, it emerged that:

i. through the website https://localtrader.app/?lp=10, which is also available in Italian, potential investors are offered the possibility of registering themselves “through Local Trader […] with the safest and most reliable brokers”;

ii. in order to be able to trade, a cash investment is required to be paid into an account opened online;

iii. at the bottom of the web page in question, and in the “Terms and Conditions”, there is only one reference to “Local Trader”;

iv. after registering on the website https://localtrader.app/?lp=10, users are redirected to a reserved area of the website https://libramarkets.com;

HAVING ALSO ESTABLISHED that, from checks on the website https://libramarkets.com, it emerged that:

i. through said website , also partially available in Italian, and subject to the prior opening of an account via the registration process which is also available to Italian users, potential investors are offered the opportunity to trade CFDs with currencies, indexes and shares as their underlying assets;

ii. in order to be able to trade, a cash investment is required to be paid into an account opened online;

iii. three types of account are available, called “Regular Account”, “Robo-trading Account” and “Social Trading Account”;

iv. at the bottom of the web page in question, and in the “Terms and Conditions”, the “LibraMarkets” brand is mentioned;

WHEREAS the activity carried out through the aforementioned websites can be classed as the provision of investment services as referred to in art. 1, paragraph 5 of the Consolidated Law on Finance, insofar as clients are offered the opportunity of opening a trading account against which purchase and/or sale orders for financial instruments can be issued;

WHEREAS the mode of operation described above, carried out through the websites https://localtrader.app/?lp=10 and https://libramarkets.com, is still ongoing, and addressed to Italian investors, since these sites may also be consulted in Italian;

WHEREAS neither of the entities mentioned in the aforementioned websites is authorised to provide investment services to the Italian public, since they do not appear to be listed in the register kept by Consob pursuant to article 20 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that the provision of investment services and activities is reserved for authorised entities as referred to under art. 18, paragraph 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 qualify as the professional provision of investment services to the Italian public, in infringement of art. 18, paragraph 1 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that, according to the provisions of art. 7-octies, letter b) 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 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 art. 18 of Legislative Decree no. 58/98 performed through the websiteshttps://localtrader.app/?lp=10 and https://libramarkets.com, consisting in the offering and provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of those whom it concerns and will be 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.

January 23, 2020

THE CHAIRMAN
Paolo Savona