Resolution no. 22242

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.magnatestrade.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 www.magnatestrade.com, which is active and also available in Italian, offers potential investors the possibility to trade CFDs on currencies, cryptocurrencies, shares, indices and commodities;

ii. in order to place such trades, users must open an account and deposit the necessary funds; specifically, two types of account are advertised on the website www.magnatestrade.com, referred to as "Bulls Eye" and "Prosperum", depending on the minimum deposit required and the benefits promised;

iii. the website www.magnatestrade.com contains references to "Magnates Trade" with stated registered office in the Netherlands and to the company called "Primer Tech International Holdings OÜ" with registered office in Estonia;

iv. the "Contact" section provides a telephone number with an Italian international calling code and the email address contacts@magnatestrade.com.

WHEREAS the activity carried out through the websitewww.magnatestrade.com is deemed to constitute the provision of investment services pursuant to article 1, paragraph 5, of the Consolidated Law on Finance, given that users are offered the opportunity through said domain to open a tradingaccount and place orders to buy and/or sell financial instruments;

WHEREAS the aforementioned activity is still ongoing and is aimed at Italian investors, insofar as the site www.magnatestrade.com is available in Italian, and there have been reports of cold calls towards retail investors in Italy;

WHEREAS the "Magnates Trade" and "Primer Tech International Holdings OÜ", as mentioned within the website www.magnatestrade.com, are not authorised to provide investment services to the Italian public, since they are not listed on the dedicated register maintained by Consob pursuant to art. 20 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that the provision of investment services and activities is reserved for authorised parties as referred to under article 18, paragraph 1, of the Consolidated Law on Finance, pursuant to which, "The commercial 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 website www.magnatestrade.com, which constitutes the provision of 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.

23 February 2022

THE CHAIRMAN
Paolo Savona