Italy’s CONSOB Orders Blocking of More Unauthorized Investment Websites

Italy's Companies and Exchange Commission (CONSOB) has continued its efforts to crack down on unauthorized financial services by ordering the blocking of access to eight new websites offering illegal investment services. The latest action is part of a broader regulatory initiative aimed at protecting Italian investors from fraudulent operators in the financial market.

Regulatory Powers Under the “Growth Decree”

CONSOBs authority to block access to unauthorized financial websites stems from the “Decreto crescita” (“Growth Decree”), introduced through Law No. 58 on June 28, 2019. Article 36, paragraph 2-tendencies of this law grants CONSOB the power to instruct Internet service providers in Italy to restrict access to websites that offer financial services without proper authorization. Since July 2019, when this law was enacted, the total number of blacked-out websites has risen to 1,152, marking significant progress in the regulator's efforts to curb illegal investment schemes.

Ongoing Blocking Process

The process of blacking out these websites by Internet service providers operating in Italy is ongoing, but it may take several days for the blocking to be fully implemented due to technical reasons. Meanwhile, CONSOB continues to monitor and take action against fraudulent operators in the market.

Investor Warnings and Resources

CONSOB urges Italian investors to exercise caution and due diligence when considering financial investments. One of the key precautions recommended by the regulator is to verify whether the operator offering the investment is authorized to provide financial services. Investors should also confirm whether a proper prospectus has been published for the financial products being offered.

To assist the public in identifying potential scams, CONSOB has provided a dedicated section on its website (www.consob.it) titled “Watch for Scams!” This resource offers valuable information and guidance to help investors avoid unauthorized financial schemes and make informed investment decisions.

Conclusion

CONSOB‘s latest actions underscore its commitment to safeguarding the financial security of Italian investors. By continuously identifying and blocking unauthorized investment platforms, the regulator aims to reduce the risk of financial fraud and promote transparency in Italy’s financial markets. Investors are encouraged to remain vigilant and utilize available resources to protect their savings from potential scams.