CONSOB's competences

Consob's supervisory activity has the following objectives: a) safeguarding trust in the financial system; b) investor protection; c) stability and proper functioning of the financial system; d) competitiveness of the financial system; e) compliance with the provisions on financial matters.

The supervisory action is aimed at pursuing all these objectives, in particular the stability of the financial system as a whole, and not only the protection of subjective legal situations of individual investors.

The Unauthorised Financial Business Office

In 2011, the Commission set up the Unauthorised Financial Business Office - within the Inspections Division - empowering it with the task of fighting the illegal financial activities provided for by the legislation on financial intermediation, public offerings, crowdfunding and crypto-assets.

In particular, the following illegal financial activities are under the Office’s competences: i) the provision of investment services and activities by unauthorized entities and the related advertising campaigns; ii) the public offerings of financial products without a prospectus and the advertising activity related to such offerings; iii) the provision of crowdfunding services by unauthorized entities; iv) the provision of services for crypto assets by unauthorized entities and the related marketing communications; v) the offerings of crypto assets to the public without a white paper and the related marketing communications; vi) the admission to trading of crypto assets without a white paper.

The Arbiter for Financial Disputes

For the resolution of disputes arising from legal relationships between investors and authorized intermediaries in 2016 Consob set up the Arbiter for Financial Disputes (ACF). The ACF is an instrument for resolving disputes between retail investors and intermediaries about the violation of the diligence, correctness, information and transparency obligations that intermediaries shall comply with when providing investment services or the collective management service. Only investors can appeal to the ACF, for claims for damages not exceeding 500,000 Euros.

Intermediaries are obliged to join the Arbiter.

If the investor is not satisfied with the decision, anyway he can apply to the Judicial Authority. Applying to the ACF or other alternative dispute resolution system is a prerequisite to judicial action

More detailed information can be found on the ACF website, www.acf.consob.it.