Resolution no. 21331

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 www.capo-invest.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 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 ESTABLISHED that, from checks on the website www.capo-invest.com, it emerged that:

i. potential investors are offered the opportunity, through the www.capo-invest.com website, subject to prior opening of an account via the registration process which is also available to Italian users, to trade CFDs relating to shares, indices and commodities;

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

iii. four types of account are offered on the website, known as 'Micro', 'Standard', 'Gold' and 'VIP', depending on the minimum deposit required;

iv. as for the links to the website in question, in the “Terms and Conditions” it says that the site “is owned and operated” by the company “Finance Activity Group“, with its alleged registered address at Sofia in Bulgaria;

WHEREAS the activity carried out through the www.capo-invest.com website 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 aforementioned operations, performed through the www.capo-invest.com website, are still ongoing and are aimed at Italian investors insofar as, although the website is only available in English, there have been reports of unsolicited telephone calls (so-called 'cold calling') made to the Italian public; in particular, an investor received a contract in Italian bearing the Consob, Mef (Ministry of the Economy and Finance) and FCA (Financial Conduct Authority) logos concerning the “provision of investment advice services by www.capo-invest.com”;

WHEREAS Finance Activity Group, mentioned on the www.capo-invest.com website, is not authorised to provide investment services to the Italian public, insofar as it is not registered on the register maintained 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 www.capo-invest.com website, consisting in offering and providing 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.

April 22, 2020

THE CHAIRMAN
Paolo Savona