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  • Fintech Research Paper by Consob entitled "A machine learning approach to support decision in insider trading detection" has been published (5 December 2022)

    Published: 01/01/1970

    The study concerning two artificial intelligence methods based on unsupervised machine learning, suitable to support the supervisory activity aimed at identifying potential cases of insider trading, has been published in the Consob series of Fintech Research Papers.

    The identification of potential market abuse cases is a complex and challenging activity, due to the huge volume of data to be processed and the variety of factors to be taken into account in the assessment of the operational behaviour of each investor. The aim of the analysis is to evaluate the possible continuity/discontinuity of the behaviour and its magnitude, in absolute and relative terms.

    The study, developed on anonymous data sets, describes the characteristics of two proofs of concept that, using artificial intelligence methods based on unsupervised machine learning, could be useful in supporting - once testing of the prototypes is complete - the preliminary analysis for identifying parties suspected of insider trading behaviour. This may be followed by an investigation aimed at collecting further useful elements to hypothesise individual cases of abuse.

    The first model uses a clustering analysis method. This method enables the identification of those groups of investors whose trading activity within a short time from a price sensitive event is not only carried out seeking reward, but also characterised by operational discontinuity both compared to the prior trading history and to the typical operations of the group to which they belong.

    In particular, the clustering analysis first elaborates the trading model of each investor based on selected quantitative parameters (net balance of purchases and sales, trade concentration and exposure). By developing these parameters, the methodology, called k-means clustering, identifies homogeneous groups of investors with reference to a specific time horizon. Finally, by analysing how the position assumed by each investor changes over time, the analysis identifies the parties that, within a short time from a price sensitive event, appear to have changed their trading behaviour (so-called discontinuous investors).

    The second model aims to identify small groups of investors that act seeking reward and in a synchronised way within a short time from a price sensitive event (so-called insider ring).

    The methodology used, called Statistically Validated Networks - after characterising the trading activity of each investor according to three possible states (buying, selling, buying-selling) - builds a network of investors characterised by synchronous activity in terms of trading status and timing. Starting from a statistically validated network of investors, homogeneous groups of parties with similar activity are identified that have operated seeking reward with respect to a price sensitive event.​​​​​​

  • Updated list of financial conglomerates as of 31 December 2021 (Joint notice by Consob, Bank of Italy, IVASS of 2 December 2022)

    Published: 01/01/1970

    Based on the provisions of the Coordination Agreement signed on 31 March 2006, the Bank of Italy, IVASS and Consob have updated the list of Italian financial conglomerates i.e. groups of companies under common control whose exclusive or predominant activities consist of providing significant services in at least two different financial sectors (banking, investment services, insurance).

    The supervision of financial conglomerates is carried out pursuant to Legislative Decree 142/2005. This provides for supplementary supervisory instruments in addition to those used for sectoral supervision, with a view to systematically monitoring the capital adequacy and riskiness of each conglomerate as a whole, while taking account of the interconnections between the insurance and banking/financial activities of its members.

    The list at 31 December 2021 includes one insurance-led financial conglomerate already subject to supplementary supervision last year. IVASS maintains its role as coordinator of the conglomerate.     

    The list omits financial conglomerates comprising significant supervised institutions, whose identification is assigned to the European Central Bank in the context of the Single Supervisory Mechanism. 

    The updated list of conglomerates identified at 31 December 2021 is available on the websites of the Bank of Italy, IVASS and Consob.

    LIST OF ITALIAN FINANCIAL CONGLOMERATES
    AUTHORITIES AT 31 DECEMBER 2021

    Conglomerate Main sector Coordinating Authority
    Generali Insurance IVASS

     Notice PDF version

  • Consob controls on non-financial statements: the parameters set forth by article 6 of Consob Regulation no. 20267 of 18 January 2018 relating to non-financial statements published in 2021 and 2022 have been determined (1st December 2022)

    Published: 01/01/1970

    Consob has determined the criteria envisaged by article 6 of Regulation no. 20267 of 2018, for the examination of non-financial information, for the purpose of identifying all the subjects whose non-financial declarations published in 2021 and 2022 are subject to control (resolution no. 22524 and resolution no. 22525 of November 30, 2022).

    The regulatory provision defines, by way of example but not limited to, the parameters representing the risk on the basis of which to identify the set of subjects whose non-financial declarations will be subjected to control. In particular, paragraph 2 of article 6 of Regulation no. 20267 of 2018 provides that Consob establishes the selection parameters for each year, taking into account, among other things:

    1. of the reports received from the control body or from the auditor appointed to carry out the statutory audit of the financial statements;
    2. the cases in which the designated auditor expresses a certified statement, a negative statement or issues a statement of impossibility to issue a statement;
    3. significant information received from other public administrations or interested parties;
    4. of the elements acquired in relation to issuers subject to financial reporting control pursuant to article 89-quater of the issuers' regulation which may be relevant for non-financial reporting.

    The regulation also provides for random selection models for the identification of additional subjects to be included in the control, even in the absence of significant risk parameters (paragraph 3, article 6).

    Consob, for the non-financial declarations published in 2021 and relating to the 2020 financial year, taking into account that the conditions for the application of the parameters established by the aforementioned art. 6, paragraph 2, letters a9, b) and c has established:

    1. with reference to the parameter referred to in point d) of the aforementioned art. 6, paragraph 2, to identify a group of subjects who have been selected for the purposes of art. 89-quater of the Consob Issuers' Regulation, for which all the areas of risk for non-financial reporting highlighted in the ESMA Public Statement containing the European common enforcement priorities for 2020 annual financial reports are more relevant;
    2. to consider, for the purposes of the selection, also the results of the supervisory activity carried out by Consob on the non-financial statements published in 2020 and relating to the 2019 financial year of certain companies, in particular in cases in which elements have been acquired regarding the presence of areas for improvement in the content of the declarations themselves or in the data collection and drafting procedures.

    Consob has also determined that the criterion for random selection is the extraction of a certain number of subjects, net of the companies identified on the basis of the aforesaid criteria, through a procedure of random generation of repeatable numbers.

    Consob has also determined, for the non-financial statements published in 2022 and relating to the 2021 financial year:

    1. to take into account the elements established by the aforementioned art. 6, paragraph 2, letters a) and b), i.e. of the selections received by the supervisory body and of the significant information received from other public administrations and from interested parties, since the conditions for the application of the relative parameters have been verified;
    2. on the other hand, not to take into account the elements referred to in point b), since the conditions have not been met;
    3. with reference to the parameter referred to in point d) of the aforementioned art. 6, paragraph 2 and taking into account the Public Statement of ESMA containing the European common enforcement priorities for 2021 annual financial reports ("ECEP 2021"), to identify a set of bank issuers that have been selected on the basis of the elements acquired in the of supervision pursuant to art. 89-quater of the Issuers' Regulation, involved in the first climate stress test of the European Central Bank, giving priority to issuers never selected for control in the recent past, also applying a rotation criterion;
    4. to consider, for the purposes of the selection, also the results of the supervisory activity already carried out by Consob on certain companies, in particular in cases in which elements have been acquired regarding the presence of areas for improvement in the content of the declarations themselves or in the procedures data collection and drafting of the same;
    5. to also evaluate the elements that come from the auditors, other than the cases already considered in points a) and b) of paragraph 2 of the aforementioned article 6, selecting those subjects who have published a non-financial statement in relation to which the auditor has formalized a limitation on the examination carried out on some specific points of the non-financial statement other than the information required pursuant to article 8 of Regulation (EU) 2020/852 ("the Taxonomy Regulation");
    6. to take into consideration the indications provided by ESMA in ECEP 2021 with reference to the application of the provisions of Article 8 of the Taxonomy Regulation, selecting those companies that have not provided any information regarding the share of economic activities eligible and ineligible for the Taxonomy in the context of the three indicators envisaged by the aforementioned article, which receives its first application starting from the 2021 non-financial declarations;
    7. to select further non-financial declarations on the basis of a potential risk indicator calculated taking into account the following factors: 1. information on the climatic risk of the economic sector of operation deriving from studies and research on the subject by the European Central Bank; 2. useful elements, from external sources, which summarize the degree of sustainability of the company, in the three dimensions of environmental, social and governance ("ESG"); 3. indicative elements of possible greenwashing behaviour, taking into account the relevance assumed by ESG factors when raising capital; 4. historical experience of the company in the preparation and publication of non-financial statements, based on the lists published by the Institute; 5. relevance of the impact of any lack of information taking into account the type of company, its possible recourse to the risk capital market, the mandatory or voluntary nature of the published declaration.

    Also in this case Consob has determined that the criterion for random selection is the extraction of a certain number of subjects, net of the companies identified on the basis of the aforementioned criteria, through a procedure of random generation of repeatable numbers.

  • Watch for scams! Abusive financial services: Consob blacks out 4 abusive websites (Press Release of 1st December 2022)

    Published: 01/01/1970

    Consob has ordered the black-out of 4 new websites that offer financial services illegally.

    The Authority availed itself of the powers deriving from the "Decreto crescita" ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order internet service providers to block access from Italy to websites offering financial services without the proper authorization.

    Below are the websites Consob has ordered to be blacked out:

    • BC Solutions Limited (website https://euroinvestpartner.com and related pages https://webtrader.euroinvestpartner.com and https://crm.euroinvestpartner.com);
    • "Sharkoption" (website www.sharkoption.com and related pages https://client.sharkoption.com and https://webtrader.sharkoption.com);
    • Coconors and Partners LLC (website https://honestcapital.pro and page  https://webtrader.c-invest.co);
    • "Winnex Consulting" (website https://winexconsulting.com and related page https://client.winexconsulting.com).

    The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 809.

    The measures adopted by Consob can be consulted on the website www.consob.it.

    The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.

    Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.

    To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.

     Press Release PDF version

  • Press release of 30 November 2022: ACF, the composition of the College has been renewed - On 12 December the new effective members (4 out of 5) and alternate members (8 out of 10) will be in office

    Published: 01/01/1970

    PRESS RELEASE

    Starting from next 12th December, the composition of the decision-making Board of the Securities and Financial Ombudsman (ACF), the body set up at CONSOB for the out-of-court settlement of disputes between savers and intermediaries, will change.

    In fact, a large part of the members of the Board, both effective and alternate ones, will be on 11th December at the natural expiry of their mandate, that has a duration of three years and can be renewed only once for further three years.

    The new effective and alternate members are as follows:

    Effective Members

    • Professor Maria Debora Braga and Professor Lawyer Michele de Mari (both already substitute members) upon designation by CONSOB;
    • Professor lawyer Francesco De Santis, appointed by the financial intermediary trade associations;
    • Professor Paolo Esposito on nomination by the National Council of Consumers and Users (CNCU), the consumer representative body.

    On the other hand, the ACF President, Gianpaolo Barbuzzi, whose five year term was renewed in December 2021 for further five years, remains in office.

    Alternate members

    • Professor lawyer Ugo Minneci, Professor Margherita Mori, Professor lawyer Giuseppe Santoni and Professor lawyer Anna Scotti upon nomination by CONSOB;
    • Lawyer Nicoletta Mincato and Professor lawyer Roberto Rosapepe upon nomination by the trade associations of intermediaries;
    • Professor lawyer Stefano Cherti and Professor lawyer Ugo Malvagna, upon designation by the CNCU.

    Professor lawyer Philipp Fabbio and Professor Gustavo Olivieri also remain in office, both alternate members upon designation by Consob, the first appointed on 22th October 2020 and the other on 1st October 2018, then subsequently renewed on 1st  October 2021 for further three years.

     Press release PDF version

  • Watch for scams! Abusive financial services: Consob blacks out 4 abusive websites (Press Release of 25 November 2022)

    Published: 01/01/1970

    Consob has ordered the black-out of 4 new websites that offer financial services illegally.

    The Authority availed itself of the powers deriving from the "Decreto crescita" ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order internet service providers to block access from Italy to websites offering financial services without the proper authorization.

    Below are the websites Consob has ordered to be blacked out:

    - Ethereal Group LLC (website https://fintegral.fund);

    - "Alltradingeu" (website www.alltradingeu.com and related page https://client.alltradingeu.com);

    - FinanceCapitalFX Cyprus Ltd (website https://financecapitalfx.com and related pages https://client.financecapitalfx.com and https://webtrader.financecapitalfx.com);

    - "MFCapitalFX" (website www.mfcapitalfx.com and related page https://client.mfcapitalfx.com).

    The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 805.

    The measures adopted by Consob can be consulted on the website www.consob.it.

    The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.

    Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.

    To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.

     

     Press Release PDF version

     

  • Laudatio by President of Consob, Professor Paolo Savona at the Bancor First Prize 2022 to Lord King of Lothbury, KG, GBE, FBA - 24 November 2022

    Published: 01/01/1970

  • Speech by the President of Consob, Professor Paolo Savona, at the LUMSA University - Rome, 21 November 2022

    Published: 01/01/1970

  • Watch for Scams! Abusive financial services: Consob blacks out 5 abusive websites (16 November 2022)

    Published: 01/01/1970

    Consob has ordered the black-out of 5 new websites that offer financial services illegally.

    The Authority availed itself of the powers deriving from the "Decreto crescita" ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order internet service providers to block access from Italy to websites offering financial services without the proper authorization.

    Below are the websites Consob has ordered to be blacked out:

    - "Cms Ltd" (website www.capmarketstrategy.io and related page https://client.capmarketstrategy.io);

    - "Bitsterzio" (website https://www.bitsterzio.com);

    - "Invest Atlas" (website https://investatlas.co);

    - Ether-Arena Ltd (websites www.ether-arena.com and https://vineab.com and related page https://clientzone.vineab.com).

    The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 801.

    The measures adopted by Consob can be consulted on the website www.consob.it.

    The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.

    Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.

    To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.

     

     Press Release PDF version

     

  • IOSCO Statement of 14 November 2022: issuers are encouraged to ensure fair, transparent and timely disclosure about impacts of economic uncertainty

    Published: 01/01/1970

    The International Organization of Securities Commissions (IOSCO), with its Public Statement of last 14 November, emphasizes issuers' need of a fair, transparent and timely disclosure of the impacts of economic uncertainty. IOSCO recommendation is also addressed to external auditors as well as audit committeees (or those charged with governance) and underlines the need to be particularly vigilant to a transparent communication in the consideration of risks and uncertainties that may affect an issuer's operations, financial condition, cash flows and prospects.

    IOSCO also highlights some factors with particular impacts on the on-going economic situation: supply chain challenges; impacts of the COVID-19 pandemic; evolving impacts of the conflict in Ukraine; growing energy supply shortages and costs; labor shortages; inflationary pressures; volatility in currency exchange rates; rising interest rates; changes in monetary/fiscal policies and other responses from central banks and other government authorities.

    In relation to the latter, IOSCO also recommends a consistent and high quality application and enforcement of reporting standards and disclosure regulations.

  • Regulation containing provisions for the implementation of Article no. 35, paragraph 3 and Article no. 36, paragraph 4, of the Legislative Decree of 27 January 2010, no. 39 , concerning the supervision of Third-Country auditors and audit entities and the exemptions in the event of equivalence: launching of the consultation with the market (15 November 2022)

    Published: 01/01/1970

    The Commission has launched a consultation with the market for the adoption of the Regulation on the supervision of Third Country auditors and audit entities.

    The regulatory intervention is aimed at issuing the regulatory provisions implementing Articles nos. 35, paragraph 3 and 36, paragraph 4 of the Legislative Decree of 27 January, no. 39, following the issuing of the Regulation of the Ministry of Economy and Finance (MEF) of 1 September 2022, no. 174 (published in the Official Journal of 11 November, and in force from 26 November 2022), with which the rules for the registration of these auditors in a special section of the Register of statutory auditors were established.

    In this regard - due to the termination of the current transitional regime - it should be noted that the MEF Regulation provides that foreign auditors already registered by Consob in the appropriate Section of the Special Register of auditing firms, present to the MEF, within 90 days of entry into force, a new application for entry in Part A or Part B of the section of the Register of auditors, depending on the case.

    Furthermore, the provisions of the MEF relating to equivalent Third-Country euditors who benefit from exemptions and the deadline for submitting the application for registration in Part B of the Section of the Register of statutory auditors, shall apply from the entry into force of the regulatory provisions pertaining to the Consob.

  • Publication of the third Research Paper from the Sustainable Finance Series: "Interest in sustainable investments. An Italian investor characterisation exercise based on Consob surveys" (14 November 2022)

    Published: 01/01/1970

    Consob has published the third Research Paper from the Sustainable Finance Series entitled "Interest in sustainable investments. An Italian investor characterisation exercise based on Consob surveys".

    The Research Paper analyses the individual characteristics that are associated with the interest in sustainable investments as noted in the Consob Observatory's 2019 and 2021 surveys on "The approach to finance and investments of Italian households".

    In line with the indications of the economic literature, interest is positively correlated with multiple aspects, including: the level of education and the soundness of the economic and financial situation; the perceived knowledge of sustainable investments, financial and digital knowledge; individual traits such as social preferences; the attitude to financial control; experience in investment matters and the possession of a diversified portfolio.

    Conversely, interest is negatively correlated with age, risk aversion and liquidity.

    The Paper provides empirical evidence and food for thought that could be useful for identifying investors' sustainability preferences, which recent European regulatory developments have made mandatory in the context of the suitability assessment to be carried out when providing investment advice or portfolio management services.

    The Research Paper also provides indications of interest with respect to the design of 'sustainable finance literacy' initiatives and financial education in general, to achieve better segmentation of the target audience for these initiatives and a more effective definition of the training content.

  • FTX EU LTD (ex K-DNA FINANCIAL SERVICES LTD): suspension of authorisation (14 November 2022)

    Published: 01/01/1970

    The Cypriot supervisory authority, Cyprus Securities and Exchange Commission ("CySEC"), announced on 11 November 2022 that it has suspended the authorisation to operate as an investment firm in respect of FTX EU LTD (ex K-DNA FINANCIAL SERVICES LTD) with effect from 11 November 2022.

    During the entire period of suspension of authorisation, FTX EU LTD is not permitted to provide/carry out investment services/activities, nor can it enter  into any business transactions with any clients, subject to any requests for the return of all funds and financial instruments, nor can it accept new clients.

    Further details can be found at  https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=2d529b90-b1e7-417e-9099-515e04e4b1b4.

  • Watch for scams! Abusive financial services: Consob blacks out 4 abusive websites (Press Release of 10 November)

    Published: 01/01/1970

    Consob has ordered the black-out of 4 new websites that offer financial services illegally.

    The Authority availed itself of the powers deriving from the "Decreto crescita" ("Growth Decree"; Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), on the basis of which Consob can order internet service providers to block access from Italy to websites offering financial services without the proper authorization.

    Below are the sites Consob has ordered to be blacked out:

    - Tetris Group Ltd (website https://clydetrade.world);

    - Broker Capitals Limited (website https://broker-capitals.com and related page https://platform.broker-capitals.com);

    - "MTinvesting" (website www.mtinvesting.com);

    - "NBIMarkets" (website www.nbimarkets.com and related pages https://account.nbimarkets.com and https://trading.nbimarkets.com).

    The number of sites blacked out since July 2019, when Consob got the power to order the black-out of websites of fraudulent financial intermediaries, has thus risen to 796.

    The measures adopted by Consob can be consulted on the website www.consob.it.

    The black-out of these websites by internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.

    Consob draws investors' attention to the importance of adopting the greatest diligence to make informed investment choices, adopting common sense behaviors, essential to safeguard one's savings: these include, for websites that offer financial services, checking in advance that the operator with whom you are investing is authorized, and, for offers of financial products, that a prospectus has been published.

    To this end, Consob would remind you that there is a section on the homepage of its website www.consob.it entitled "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.

     

     Press release PDF version

     

  • Discussion Paper no. 11 published - "Customer profiling for the purposes of suitability assessment. Follow up to the 2012 study on a sample of Italian intermediaries" (7 November 2022)

    Published: 01/01/1970

    Consob published the study entitled "Customer profiling for the purposes of suitability assessment. Follow up to the 2012 study on a sample of Italian intermediaries" in the  Discussion Paper series.

    The work continues and extends the analysis published in a previous Discussion Paper in 2012, using the same methodological approach, with reference to the formats used for suitability assessments by a sample of 22 Italian banks representing about half of the assets managed on behalf of retail customers as at 31 March 2022.

    The examination takes into account the specifications contained in the reference legislation and the ESMA guidelines of 2018 and 2022 on suitability assessments and on good practices relating to the structuring and administration of questionnaires, which can be inferred from disciplines such as statistics, psychometrics and behavioural finance.

    The work also extends the scope of the 2012 study by analysing investor profiling algorithms. In particular, we examined the rules on exploiting and aggregating of the information collected through the questionnaires as well as the procedures for attributing, and subsequently updating over time, a specific profile to a customer.

    Finally, the study illustrates the regulatory innovations related to collecting data on customers' sustainability preferences as referred to in Delegated Regulation (EU) 2021/1253 and offers a survey of the suggestions found in the literature on the subject.

    The evidence collected allows us to conclude that, compared with 2012, the quality of the data collection tools used by banks for suitability assessments is on average higher, in terms of both completeness of content and the clarity of the language and terms used. In addition to this, the questionnaires were easier to read and understand.

    With regard to the algorithms used to attribute profiles to customers, it has been noted (also as a result of Consob's supervisory activity) that there is an increasing focus on the use of metrics that reduce the risk of banks using profiles in an opportunistic way that does not reflect the actual characteristics of customers.

    Without prejudice to this solid ground, however, there is still room for improvement, relating both to the structure of the questionnaires and to the algorithms used for profiling. With regard to the first aspect, it should be noted, among other things, that information on financial knowledge continues to be gathered using self-assessment questionnaires.

    With reference to the second aspect, attention is drawn to the assignment of scores not adequately differentiated by type of question and relevance of the variable to be investigated; failure to make proper use of certain information collected during the administration of the questionnaire; and the extent of the internal consistency checks on the information collected and the verifications with respect to the broader information set available to the bank.

    In this context, specific supervisory initiatives were launched by Consob with reference to the customer profiling procedures adopted by the subjects in the sample with a view to ensuring greater convergence towards market best practices.

    The study contains interesting recommendations for the definition of the contents of financial education initiatives, in particular, for the formats dedicated to the investment process and the relationship between the investor and the financial advisor, in which the importance of the information exchange between customer and bank is highlighted, as well as the profiles the retail investor must devote attention to in order to increase the effectiveness of the suitability assessment, that is, one of the main measures that the law places in its protection. In this context, by favouring investment choices aligned with the investor profile, suitability assessments also help increase confidence in market operators.

     

     Discussion Paper no. 11

     

  • Watch for scams! Abusive financial services: Consob blacks out 7 abusive websites (Press Release of 4 November 2022)

    Published: 01/01/1970

    Consob has ordered the black-out of 7 new websites that offer financial services/financial products illegally: 6 illegal financial intermediation websites and 1 website through which an offer of financial products is carried out in the absence of a prospectus.

    The Authority availed itself of the powers deriving from the "Decreto crescita" ("Growth Decree" Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), relating to the black-out of the sites of abusive financial intermediaries, as well as of the power introduced by the Law no. 8 of 28 February 2020, Article no. 4, paragraph 3-bis, with reference to the black-out of the website through which the illegal offer is carried out.

    Below are the websites Consob has ordered to be blacked out:

    - "Smart Trade Cfd" (website https://smarttrade-cfd.com and related page https://platform.smarttrade-cfd.com);

    - Lilac Group LLC (website https://coinevo.pro);

    - "Xtbinvesting" (website www.xtbinv.io and related pages https://webtrader.xtbinv.io and https://client.xtbinv.io);

    - Donnybrook Consulting Limited (website https://onyxprofit.com as well as website https://onyxprofit.cc and related page https://webtrader.onyxprofit.cc);

    - Isaacs Partners Limited (website https://isaacspartners.com and related page https://webtrader.isaacspartners.com)

    - "Coin Earners Ltd" (website https://coinearnersltd.com).

    The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 792.

    The measures adopted by Consob can be consulted on the website www.consob.it.

    The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.

    Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.

    To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.

     

     Press release PDF version

     

  • The Edufin 2022 Report drawn up by the Committee for the planning and coordination of financial education activities in collaboration with Doxa have been published on the "QuelloCheConta" website - Final event of the Month of Financial Education #OttobreEdufin2022 (31 October 2022)

    Published: 01/01/1970

    The fifth edition of the Month of Financial Education #OttobreEdufin2022 ended with the dissemination of the data of the 2022 Edufin Report on financial knowledge in Italy created together with Doxa, presented during the final event at the Explora Museum in Rome.

    A month full of seminars, lectures, workshops and free shows organized throughout the country with the aim of helping citizens to develop knowledge on insurance, social security and management of personal and family financial resources.

    The initiatives promoted respond to the growing demand for financial education of citizens, who are increasingly aware of the need to acquire knowledge and skills they can rely on to better manage their savings.

    In fact, the share of Italians who would like the introduction of financial education both in schools (from 86.5% to 89.1%) and in the workplace (from 76.5% to 79.5%) is very high.

    This was revealed by the Edufin 2022 Report "Financial education: guidance tool in times of uncertainty" created by the Edufin Committee in collaboration with Doxa, which also reports an increase in the reputation of the Edufin Committee (from 8.5% to 12.1%) and Financial Education Month (12% to 18.9%). Furthermore, one in ten Italians knows that there is a national strategy for financial education.

    Link: https://www.quellocheconta.gov.it/it/news-eventi/comunicati_stampa/2022/com_31102022.html

     

  • Greeting speech by President Savona at the Consob-Bocconi seminar on the topic: "Financial supervision and sanctions system" (28 October 2022)

    Published: 01/01/1970

    28 October 2022 and 14 November 2022 - Two-day seminar cycle on "Financial supervision and sanctioning system"

    The National Commission for Companies and the Stock Exchange (CONSOB), in collaboration with Bocconi University, organized the first seminar of the cycle on "Financial supervision and sanctioning system". The cycle is divided into two days: the first day on 28 October 2022 H. 10.00 am to 1:00 pm, about "Systematic Profiles", the second on 14 November 2022 H. 9.30 am to 1.30 pm, about "Substantial Profiles".

     Greeting speech by President Savona [PDF] (available only in Italian)

     

  • The CEAOB has published the "Materiality in the context of an audit" Report, an analysis that provides an overview of the application of materiality by the 4 main audit networks and the sensitivity of the audit committees to this issue (Notice of 28 October 2022)

    Published: 01/01/1970

    The CEAOB (Committee of European Auditing Oversight Bodies), the body that represents the reference point at European level for the coordination of the Supervisory Authorities on auditors, published in September the Report on Materiality in the context of an audit, an analysis providing an overview on the application of materiality by of the 4 main audit networks (so-called Big Four) in the context of auditing assignments on public interest entities (EIPs), with the aim of examining the criteria present in the guidelines in the various networks and understanding their consistency in their practical application. The survey was also extended to a sample of audit committees in order to measure their sensitivity on this topic and the degree of interaction with the auditors.

    The definition of materiality (or significance) levels, i.e. the amount above which errors found by the auditor may impact the overall materiality and the lesser amount on the basis of which the auditor defines the nature and extent of the audit procedures to be carried out (performance materiality), represents a fundamental decision for the purposes of an adequate performance of the audit process.

    The calculation of materiality, whose contours are defined by the ISA 320 auditing standard, cannot be traced back to a simple mechanical task but requires to consider, with due attention and on the basis of the auditor's professional judgment, all the facts and relevant circumstances, including qualitative aspects.

    As a result of the analysis carried out, the Report contains three main direct messages:

    • to the standard setters, requiring the formulation of rules ("requirements") in the auditing standards that provide more specific indications for the identification of the parameters (so-called "benchmark") and the relative "range" of values to which the auditor must refer for the purpose of correctly determining both the overall materiality "and the" performance materiality ";
    • to the auditors, recommending greater attention in the use of the most suitable benchmarks for the purpose of assessing the materiality thresholds, in the correlation between the level of materiality and that of the risk of the engagement and favoring the use of prudential haircuts especially in the first year of office or in particular circumstances;
    • to the audit committees, hoping for a constructive dialogue with the auditors on these issues and also the adoption of specific actions in the presence of inconsistencies in the determination of materiality with respect to their expectations, as well as to take this aspect into consideration also in the process of conferment of assignments.

  • Watch for Scams! Abusive financial services: Consob blacks out 5 abusive websites (Press Release of 27 October 2022)

    Published: 01/01/1970

    Consob has ordered the black-out of 5 new websites that offer financial services/financial products illegally.

    The Authority availed itself of the powers deriving from the "Decreto crescita" ("Growth Decree" Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies), relating to the black-out of the sites of abusive financial intermediaries, as well as of the power introduced by the Law no. 8 of 28 February 2020, Article no. 4, paragraph 3-bis, with reference to the black-out of the website through which the illegal offer is carried out.

    Below are the websites Consob has ordered to be blacked out:

    - "Clearpoint-fin/Clearpoint Capital" (website https://clearpoint-fin.com and related page https://account.clearpoint-fin.com);

    - "Cryptohold" (website https://cryptohold.pro);

    - Vermillion Consulting LLC (websites https://tedex.live and https://tedex.trade);

    - "InstantTrade.com" e "TradingSR" (website https://instanttrade.net and related pages https://panel.instanttrade.net and https://trading.instanttrade.net).

    The number of websites blacked out since July 2019, when Consob got the power to order that the websites of fraudulent financial intermediaries be blacked out, has thus risen to 785.

    The measures adopted by Consob can be consulted on the website www.consob.it.

    The black-out of these websites by Internet service providers operating on Italian territory is ongoing. For technical reasons, it can take several days for the black-out to come into effect.

    Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published.

    To this end, Consob would remind you that on the website www.consob.it there is a section on the homepage, "Watch for Scams!", providing useful information to warn investors against financially abusive initiatives.

     

     Press Release PDF version