Consob blocks access to Virtu Finance, JFD Market and TradeCare365
Italy’s financial watchdog, Consob, has blocked access to three new websites offering financial services that are not authorized by the regulator. The move is aimed at protecting Italian investors from potential fraud and other risks associated with unregulated financial services providers.
The Italian market securities market regulator has been on a rampant crackdown to protect retail investors by making illegal financial services inaccessible.
Additionally, this includes product offers by firms holding licenses in other jurisdictions. The strict actions on these unauthorized actors in the market come as offshore brokers continue to chase online trading business in Italy.
In its latest crackdown, the Consob has contacted Italy’s internet service providers, requesting them to block access to:
- “JFD Market” ( websites https://jfdtrade.net and related page https://account.jfdtrade.net);
- Orionda Financials Ltd and TradeCare365 Markets Ltd (website www.tradecare365.com and related pages https://clientzone.tradecare365.com and https://webtrader.tradecare365.com);
- “VirtuFinance” (website www.virtufinancialireland.com and related page ttps://webtrader.virtufinancialireland.com).
The regulator’s latest move involves blocking access to websites that offer financial services without the necessary authorization from Consob. The regulator has the power to request that internet service providers (ISPs) block access to these sites, effectively preventing Italian investors from accessing them.
A glimpse at the websites of the brokers added out by the Italian financial regulator shows a well-known tactic to attract inexperienced clients to trade highly leveraged products.
Some of these brands are offering bonus schemes for their clients to the tune of 100 percent of their deposits. With the usual draconian conditions required to withdraw funds from the account once a bonus is applied, the end-result for such tactics are usually disgruntled clients who have withdrawal issues. With the Forex brokerage industry in the developed world being forced to halt any such practices, offshore jurisdictions remain tolerant of bonus schemes.
Consob’s decision to block access to offshore FX brokers is part of a broader effort to protect Italian investors from financial scams and other fraudulent activities. The regulator has been working closely with law enforcement agencies to investigate potential scams, and has also been working to educate investors about the risks associated with investing in unregulated financial services providers.
Investors are advised to check that any financial services provider they plan to use is authorized by Consob before investing. The regulator’s website provides a list of all authorized financial services providers in Italy, and investors can also contact the regulator directly if they have any doubts about a particular provider.
