Resolution no. 21411

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.fxdirects.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 www.fxdirects.com website, subject to prior registration and opening of an account through the online process, which is also available to Italian users, to trade CFDs with underlying currencies, indices and commodities through a dedicated trading platform;

ii. the site advertises four types of account named, depending on the minimum deposit required and the benefits promised, "Standard", "Raw", "Pro" and "Islamic";

iii. at the bottom of the site's web pages and in the "Terms & Conditions" section, the company named Lead Secure Ltd is indicated, with stated address in the United Kingdom;

iv. the "Contact Us" section provides several telephone numbers, the presumed registered office of the company and an email address (support@fxdirects.com).

WHEREAS the activity carried out through the website www.fxdirects.com 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 activity, carried out through the www.fxdirects.com website, is still ongoing and aimed at Italian investors, since there have been reports of the existence of a telephone number with an Italian prefix being used to cold call members of the public in Italy;

WHEREAS the company Lead Secure Ltd, with stated address in the U.K., mentioned on the www.fxdirects.com website, is not authorised to provide investment services to the Italian public as it is not 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 licensed parties 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 carried out through the www.fxdirects.com website, consisting of 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.

June 17, 2020

THE CHAIRMAN
Paolo Savona