Consob has flagged five illegal websites offering financial services in an unregulated manner. The regulator has now blocked 431 illegal financial websites operating in Italy.
Consob, the securities market regulator in Italy, has been blacklisting illegal financial service providers in a move aimed to protect investors. The latest press release by the regulator revealed that the regulator had flagged an additional five websites that were found to be offering financial services illegally.
The five firms that have been red-flagged include Italiano Invest, EZ2GO Ltd, Ozava Partners LTD, Pro Star, and New Traders Holdings. The firms were dealing in forex and CFD financial products. The target groups of these firms were retail investors will small investment holdings.
Consob’s vigilance in market regulations
Consob has become very vigilant in monitoring the market and protecting investor funds. The regulator has been involved in an active process of blacklisting all financial firms in the country found to be in contempt of the stipulated laws and guidelines. The blacklisting process started in Mid-2020, and so far, Consob has blacklisted 431 platforms.
The Italian securities market is unique from its European counterparts, given that Consob has the authority to block the public from accessing websites that have been blocked or flagged.
As noted in the press release, Consob noted that removing these sites from the internet space could take a few days. The regulator collaborates with Internet Service Providers to block the public’s access to suspicious sites.
Consob further issued a note to investors to urge them to conduct due diligence before making investment decisions. Being vigilant will help investors protect their savings, falling into the hands of fraudsters who have increased in the trading service sector. Some of the ways investors can protect themselves include conducting a background check on an operator to ensure they are legally authorized to offer the financial products they are offering.
Role of regulators in protecting investors
Fraudulent schemes in the trading sector have been increasing rapidly in recent years. Fraudsters are also shifting into using sophisticated means that may be hard to detect. To this end, regulators are becoming more vigilant in ensuring that investors in the trading service sector are protected.
Besides Consob, other European regulators are also blacklisting websites found to be in contempt of market rules. Red flagged websites and firms usually have issues with compliance. When consumers see this, they can make a proactive decision protecting their investments.