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