Resolution no. 23195

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 via the website https://sigmacapitals.uk

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, as subsequently amended and supplemented;

HAVING REGARD to Legislative Decree no. 58 of 24 February 1998 ("Consolidated Law on Finance"), as subsequently amended and supplemented;

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

i. via the website https://sigmacapitals.uk - which is active, registered anonymously and can be consulted in Italian via automatic translation systems - the potential investor is offered the possibility of trading in contracts for difference (CFDs) with currencies, shares, indices and cryptocurrencies;

ii. in order to place trading transactions, users must register with the website https://sigmacapitals.uk, open an account and deposit relevant funds; the website lists four different types of accounts ("Standard", "Silver", "Gold" and "VIP") which differ according to the minimum deposit and the benefits promised;

iii. as to traceability, the website contains generic references to "Sigma Capital" without providing a registered office address.

HAVING REGARD TO Consob Resolution no. 23114 of 14 May 2024, whereby the order was given to cease the infringement of article 18 of the Consolidated Law on Finance conducted through the separate https://sigmacap.co website;

WHEREAS, in addition to using a domain that is similar to the domain of the aforementioned https://sigmacap.co website, the https://sigmacapitals.uk website replicates the content and graphic format of the former website;

WHEREAS the activity carried out through the website https://sigmacapitals.uk constitutes the provision of investment services within the meaning of article 1, paragraph 5, of the Consolidated Law on Finance, given that users are offered the opportunity to open a trading account and place buy and/or sell orders on financial instruments;

WHEREAS the above activity, carried out via the website https://sigmacapitals.uk, is still ongoing and is aimed at Italian investors, given that said website is available in Italian via automatic translation systems, the absence of a mechanism to block registration by users attempting to register with the said website from Italy through Italian IP addresses has been noted, attempts to contact Italian investors have been reported and complaints have also been received from Italian investors who have reported that they were unable to get back the sums deposited for trading transactions;

WHEREAS the website https://sigmacapitals.uk cannot be attributed to any entity authorised to provide investment services to the Italian public;

HAVING REGARD TO the requirement to hold a relevant licence 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 article 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 unauthorised provision of investment services" - 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 breach";

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://sigmacapitals.uk 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 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.

10 July 2024

THE CHAIRMAN
Paolo Savona