Italian investors have been warned not to use any financial services from SMART FX. They were also warned about Warp Enterprise Ltd, Pro Consulting Invest, Gntfin LTD and Global Finance FX. CONSOB, an Italian financial regulator, has added these sites to its list of banned Internet sources due to the illegal promotion of trading products in the country.
The announcement, which came out on Monday, is the latest in a series of CONSOB warnings about unregulated firms that consider themselves legal. They pretended to be legal companies in order to force Italian consumers to pay for investment services.
Thus, the number of sites blacklisted since July 2019 has increased to 223. It is from the moment the regulator received the authority to prohibit financial intermediary sites that it considers fraudulent. Blacklisted companies today offer Forex and CFD trading. But CONSOB says some of the names mentioned in the warning deal with crypto assets. Either with coins, or with derivatives associated with them, such as CFDs.
Consob Termination Orders
This kind of practice began after Consob improved the process of identifying firms that did not meet the requirements. In December 2019, the regulator switched to two Forex and CFD licensed CySEC brokers. He ordered them to stop operations in the country.
24Option and Hoch Capital Ltd did not have the right to provide investment services in Italy. Consob’s solution also prevents Cypriot resellers from attracting customers or continuing their current relationship with Italian customers.
Then the regulatory body made a decision in accordance with paragraph 4 of Article 7 of the Consolidated Law on Finance. This was also in accordance with Article 86 of MiFID 2.
This legislation allows the regulator to prohibit investment firms and brokers operating in the country on behalf of another EU member state. This happens through the EU passport regime in order to cease operations after informing the competent authority of the member country.
Other European financial regulators have blacklisted some of these brokers as trading scammers. This is why CONSOB advises Italian investors to check the blacklist before depositing funds to the broker. Especially if the broker used aggressive marketing methods.