Resolution no. 21409

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.royaltd24.net

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.royaltd24.net, it emerged that:

i. potential investors are offered the opportunity, through the www.royaltd24.net website, which is also available in Italian, 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 shares;

ii. in order to trade and carry out transactions, a cash investment is required, to be paid into an account opened on line; in particular, four different types of account are available called “Bronze”, “Silver”, “Gold” and “Platinum”, according to the minimum deposit requested and the benefits offered;

iii. as for traceability, the "Terms and Conditions" state that: "Royaltd24 is operated by RL Ltd. A company incorporated under the laws of the Marshal Islands and having its registered office in the Marshal Islands”;

HAVING REGARD TO resolution no. 21224 of 23 January 2020, which ordered the company RL Ltd to cease its infringement of article 18 of the Consolidated Law on Finance carried out through the separate www.royaltd24.com website;

WHEREAS, in addition to using a domain that is partially superimposable on the domain of the aforementioned www.royaltd24.com website, the www.royaltd24.net site replicates the content and graphic format of the said www.royaltd24.com website;

WHEREAS the activity carried out through the website www.royaltd24.net 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 aforementioned transactions, carried out through the www.royaltd24.net website, are still ongoing and are aimed at Italian investors, since the website is also available in Italian, and there have also been reports of cold calling members of the public in Italy;

WHEREAS RL Ltd, with its registered address in the Marshall Islands, which is mentioned on the www.royaltd24.net website, is not authorised to provide investment services to the Italian public insofar as 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 licensed parties as referred to under article 18, paragraph 1, of the Consolidated Law on Finance, pursuant to which, 'The professional provision of investment services and activities to 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 article 7-octies, letter b) of the Consolidated Law on Finance - 'Powers to counteract abusive practices' - CONSOB 'may, with regard to anyone who offers or carries out investment services or activities over the Internet without being qualified to do so pursuant to this decree: […] b) order the cessation of the infringement';

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.royaltd24.net, 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.

June 17, 2020

THE CHAIRMAN
Paolo Savona