Consob Blocks Access to Hoch’s Website
Consob, the Italian securities regulator, has ordered website blocking for Hoch Capital Ltd. The CySEC licensed Forex & CFD broker Hoch Capital was ordered in December to cease operations in Italy. It has contacted the country’s internet service providers requesting that they block access to Hoch’s website, www.tradeatf.com.
The watchdog said Hoch Capital Ltd, an investment company of Cypriot law, is violating the ban imposed on it by Consob on 5 December 2019.
Decreto Crescita law supported this latest action, allowing the regulator to obstruct Italian investors’ access to online brokers. It has taken similar action throughout the past few months, requesting the barricade of 184 domains.
It has banned Hoch Capital back in December 2019. Moreover, it was its first time to exercise its authority to ban a firm from marketing its products to Italian traders.
Consob said the ban was necessary to protect Italian investors. The Limassol-based broker committed the same violations despite the measures adopted by its original regulator CySEC.
Consob Sent Several Complaints to CySEC
Consob said Hoch Capital continued to break laws even after the regulator sent several complaints to CySEC about its misconduct.
The claims referred to non-compliant practices made by the brand’s operator, including promoting the contracts for difference to non-professional investors.
It also violated the EU directive that mandates negative account protection, ensuring customers can’t lose more than their trading stake. Moreover, the regulator accuses Hoch Capital staff of exercising pressures on their clients to deposit more funds. Though the present rules forbid bonuses and other incentives that may have encouraged overtrading in recent years.
Hoch Capital prohibited from providing investment services in the country. The decision also prohibits the Cypriot intermediary from soliciting customers or to continue their current relations with Italian clients. Hoch Capital will, therefore, have to close the accounts of its Italian traders.
