Resolution no. 21385

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 https://thecapitalstocks.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, it emerged that:

i. potential investors are offered the opportunity through the https://thecapitalstocks.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 currencies and commodities through a dedicated trading platform;

ii. to register with the site and open one of the trading accounts, the user is redirected to a registration page which is also available in Italian;

iii. there are three types of account advertised on the website, known as 'Silver', 'Gold', and 'Platinum', depending on the minimum deposit required and the benefits promised;

iv. as regards ownership, at the bottom of the website pages and in the "Terms and Conditions" it says "This website is owned and operated by Kleinman Entreprise Ltd", with its alleged address at Saint Vincent and the Grenadines.

WHEREAS the activity carried out through the https://thecapitalstocks.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 transactions, carried out through the https://thecapitalstocks.com website, are still ongoing and are aimed at Italian investors since the website is partially available in Italian as the registration page is available in that language;

WHEREAS Kleiman Enterprise Ltd, with its alleged address in Saint Vincent and the Grenadines, which is mentioned on the https://thecapitalstocks.com website, is not authorised to provide investment services to the Italian public, because it does not appear on 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 https://thecapitalstocks.com website 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.

May 27, 2020

THE CHAIRMAN
Paolo Savona