Resolution no. 22094

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 https://fxmagna.com and the respective page https://client.fxmagna.com

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 24th February 1998

("Consolidated Law on Finance") and subsequent amendments and supplements;

HAVING ESTABLISHED that, from checks on the web, it emerged that:

i. the website https://fxmagna.com, which is active, registered anonymously and also available in Italian, offers potential investors the opportunity to trade CFDs on currencies, indices, commodities and shares;

ii. in order to place such trades, users must register with the https://fxmagna.com website – through a procedure that is also available for Italian users on the https://client.fxmagna.com page, which can be reached directly from the https://fxmagna.com site’s homepage – open a trading account and deposit the relevant funds;

iii. in particular, four types of account are listed on the https://fxmagna.com website, referred to as "Galileo", "Newton", "Einstein" and "Michelangelo", depending on the minimum deposit required and the benefits promised;

iv. as for traceability, it states at the bottom of the https://fxmagna.com website’s pages that "Fxmagna.com is operated by MAGNA EMPORIUM GROUP LTD", with its declared registered address in London;

WHEREAS the activity carried out through the website https://fxmagna.com and the relevant page https://client.fxmagna.com constitutes the provision of investment services, as referred to in article 1, paragraph 5, of the Consolidated Law on Finance, insofar as users are offered the possibility through the aforementioned domains to open a trading account and place buy and/or sale orders on financial instruments;

WHEREAS the above-described activity, carried out through the https://fxmagna.com website and the relevant https://client.fxmagna.com web page, is still ongoing and aimed at Italian investors, given that the aforesaid domains are also available in Italian, and there have also been reports in relation to the https://fxmagna.com website of cold calls made to retail investors in Italy;

WHEREAS Magna Emporium Group Ltd, with its stated registered office in London, is not authorised to provide investment services to the Italian public, since it is not listed in the register maintained by Consob pursuant to article 20 of the Consolidated Law on Finance;

HAVING REGARD TO the requirement to hold a relevant authorisation to provide investment services and activities as per 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 to Italian investment firms, EU investment firms, Italian banks, EU banks and non-EU firms";

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 carried out through the https://fxmagna.com website and its https://client.fxmagna.com page, consisting in offering and providing investment services and activities to the Italian public.

This Resolution shall be brought to the attention of the concerned parties and 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.

25 November 2021

THE CHAIRMAN
Paolo Savona