Resolution no. 21310

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 website www.dubaifxm.co, which can be reached through the URL dubaifxm.co

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 supplements;

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

HAVING REGARD TO Consob Resolution no. 20670 of 6 November 2018 and no. 21202 of 18 December 2019, whereby Consob ordered, pursuant to article 7-octies, letter b), of the Consolidated Law on Finance, the company Dubai FXM Ltd, with its registered office at Vanuatu, to cease the infringement of article 18 of the Consolidated Law on Finance conducted respectively through the websites www.dubaifxm.com and www.dubaifxm24.com, as well as the HYPERLINK "http://www.dubaifxm24.com/" \h \h websites www.dubaifxm.trade HYPERLINK "httwww.dubaifxm.com, www.dubaifxm24.com, www.dubaifxm.trade and www.dubaifxm.trading websites;

ii. potential investors are offered the opportunity through the website www.dubaifxm.co, subject to prior opening of an account via the registration procedure which is also available to Italian users, to trade in CFDs relating to indices, commodities and shares;

iii. in order to trade, a cash investment is required, to be paid into an account opened online; in particular, there are five types of account available known as 'Discovery', 'Silver', 'Gold'', 'Premium' and 'VIP', depending on the minimum deposit required and the benefits promised;

iv. at the bottom of the pages on the site it says that Dubai FXM is the brand name of DUBAI FXM LTD and in the section “Terms & Conditions” it states that the site “is operated and owned by DUBAI FXM LIMITED”, with its registered address at Vanuatu.

WHEREAS the activity carried out through the website www.dubaifxm.co, which can also be accessed through the URL dubaifxm.co, can be classed as the provision of investment services as referred to in Article 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 above described transactions are still ongoing and are aimed at Italian investors insofar as there have been reports that the company is continuing to provide investment services through internet sites - reported to Consob by Italian investors - where the domain name is changed subsequently to the measures already adopted by Consob;

WHEREAS the company DUBAI FXM LTD mentioned on the website www.dubaifxm.co and in the URL dubaifxm.co is not authorised to provide investment services to the Italian public, insofar as it is not registered 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 article 18 of Legislative Decree no. 58/98 performed through the website www.dubaifxm.co, which can also be reached through the URL dubaifxm.co, consisting in the 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.

March 25, 2020

THE CHAIRMAN
Paolo Savona