Consob bans Cypriot firm behind 24fx and 24option from providing services in Italy

Maria Nikolova

The regulator has adopted a precautionary measure prohibiting the Cypriot investment firm Rodeler Limited from providing of investment services and carrying out activities in Italy.

Italy’s ICompanies and Exchange Commission (CONSOB) has announced the adoption of a precautionary measure prohibiting Rodeler Limited from the provision of investment services and conducting activities in Italy. The ban also applies to the following websites:

  • 1) www.24option.com,
  • 2) www.rodeler.com,
  • 3) www.24fx.com,
  • 4) www.grandoption.com,
  • 5) www.quickoption.com.

The move marks the second time the Italian regulator applies such a precautionary provision, after the one recently adopted with reference to Hoch Capital Limited.

The prohibition is issued on the basis of article 7-quater, paragraph 4 of the Consolidated Law on Finance (Tuf), implementing Article 86 of Mifid2, the European regulation on the provision of investment services, and aims to ensure protection to the Italian investors.

Consob explains that the measure was necessary as Rodeler Limited has been repeatedly violating the regulations in force despite the directions of the Cyprus Securities and Exchange Commission (CySEC), issued in response the reports sent by Consob to the CySEC.

Rodeler Limited is now banned from providing investment services in Italy and from making solicitations and acquisitions of new clients in the country as well as to continue its relations with Italian clients. The investment firm must be compliant with the detailed orders given by the Italian clients for closing the open accounts.

The prohibition was justified by several complaints forwarded, even recently, to Consob by Italian investors, describing serious irregularities made by the Cypriot firm. The complaints concerned activities related to Contracts for Difference (CFDs), financial instruments regarding which Consob already intervened, restricting the marketing of CFDs in Italy to retail investors.

In some cases, the complaints against Rodeler concerned the total loss of the invested capital, inappropriate classification of clients and aggressive marketing techniques.

Consob’s precautionary measure will remain in force until clear evidence is obtained from CySEC to prove Rodeler Limited has fixed the issues reported by the Italian clients.

Read this next

Executive Moves

Genesis Global snatches CMO Jason Jhonson from metaverse company

The hire of Jhonson follows the announcement that Genesis raised $20 million in fresh funding from US banking giants, Bank of America, BNY Mellon and Citi.

Digital Assets

Celsius subsidiary GK8 integrates with Polygon while looking for new owner

“This integration affords our customers more agility in managing their crypto assets, which is key to creating new revenue streams.”

Digital Assets

BDO Italia audits Tether reserves to release monthly attestation

World’s largest stablecoin issuer, Tether has switched the accounting firm that audits the massive reserves that back its USDT token to BDO Italia, the 5th largest accounting firm in the world.

Retail FX

Libertex bags multi-year sponsorship deal with FC Bayern

Indication Investments Ltd, the operator of FX retail brand Libertex, has secured a lucrative sponsorship deal with German soccer giant FC Bayern.

Institutional FX

PrimeXM reports lower volumes for July as summer lull bites

PrimeXM has reported weaker trading volumes for July 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Retail FX

FCA warns of ATFX Global Trading / ATFXcoin

In its latest clampdown against the specific type of ‘clone fraud’, the Financial Conduct Authority (FCA) has warned local investors to watch out for a company called ATFX Global Trading / ATFXcoin.

Digital Assets

CME Group to roll out options on Ether futures next month

Derivatives exchange CME Group is set to roll out options on Ether futures on September 12 in a move to bring another level of diversification to cryptocurrency traders.

Industry News, Podcasts

Finance Feeds launches Podcasts: Listen to Ep. #1 feat. Dmitri Galinov of 24 Exchange

The team at Finance Feeds are happy to announce the launch of our Podcast series, available on Spotify and other audio services and hosted by our Editor-in-Chief Nikolai Isayev.

Digital Assets

Madfish launches Yupana.Finance, the first lending protocol on Tezos

Yupana, which aims to provide a similar experience to Aave or Compound, currently supports TEZ, cTEZ, kUSD, tzBTC, uUSD, and uBTC.

<