quora Italian Watchdog Consob Blacklists 6 Frauds
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Italian Watchdog Consob Blacklists 6 Frauds

Blacklisted Italian investors just reached 124 when Consob securities regulator ordered to obstruct their internet access. The Commissione Nazionale per la Societa el la Borsa (Consob) said they found them using “unlawful” and “misleading” practices.

Investors were encouraged to consciously think about individual investment choices by adopting precautions like verifying if operators have required authorizations. They should check their “Be aware of fraud!” section on the www.consob.it homepage.

The Decreto Crescita allows CONSOB to order internet services to block access to these websites in the country. The law introduces urgent measures for economic growth like inbound tax aimed at high-income workers in Italy.

These websites offered financial services without proper permissions and authorizations:

  1. rtm500.com (RMT 500 Ltd)
  2. localtrader.app/?lp=10 and www.libratmarkets.com (Local Trader)
  3. atlantika.io (Tradepoint Systems Ltd)
  4. royaltd24.com (RL Ltd)
  5. ks-securities.com (Ks-securities)
  6. ftefxpro.com (Ace Capital Ltd)

Previously with Consob

Consob put a blanket ban against 24Option and Hoch Capital Ltd, both CySEC regulated CFD brokers. Moreover, Hoch Capital repeatedly violated Cyprus Securities and Exchange Commission-adopted measures.

The guilty broker continued to break laws even after the watchdog filed several complaints against them. Consob accused Hoch of pressuring their clients to deposit more funds despite prohibitions, prompting overtrading and other incentives.

Furthermore, the company violated the EU directive that mandates negative account protection that reduces trading losses.

Above all, additional complaints included total loss of invested capital and classification as a professional-client in the absence of requisites.

Hoch Capital received a notice of suspension from providing its services last December 2019. Thus, the decision forced the company to discontinue services with Italian clients.

Involved parties reached a €200,000 settlement for alleged violations of the Investment Services and Activities and Regulated Markets Law. The prohibition will be in force until CySEC and the company finishes gathering shreds of evidence against it.

The ban was the first time CySEC exercised its authority against Italian brokerages.

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