Italy is a member of the European Union and is governed by many of the same rules and regulations as other EU member states. However, compared with other major economies in the EU, the online forex trading industry is much smaller in Italy. Online trading brokerages are just simply not choosing Italy as their place of business, and traders are often forced to look elsewhere. Why is this? And what regulations are governing the online trading industries in Italy to cause such little interest in online trading here? Let’s find out.show more
The governing body that regulates the financial trading markets in Italy is the Commissione Nazionale per le Societa e la Borsa (CONSOB) and the translation of CONSOB in English is the Italian Companies and Exchange Commission. This entity is the government run regulatory authority of Italy responsible for the regulation of the Italian securities market, which includes the Italian stock exchange (Borsa Italiana). CONSOB was founded in 1974 with the intent to monitor the securities markets but grew over the years and took on significantly more responsibilities.
The Italian Companies and Exchange Commission (CONSOB) is responsible for a variety of things regarding the protection and regulation of the financial markets in Italy. See below a list of the organizations key responsibilities.
They regulate investment services and operations of intermediaries dealing with investors money.
They oversee that businesses listed on regulated markets submit periodic reports.
They regulate the solicitation of investments to the public.
They authorize all aspects and operations pertaining to the regulated markets. This may include publication of prospectuses, management of financial instruments, among other things.
They enforce and penalize businesses and people who fail to comply with their regulatory guidelines.
They check information provided to the market by brokerages and investment services that solicit themselves to the public.
The whole reason the Italian Companies and Exchange Commission (CONSOB) was established is to protect investors, brokerages, and entities involved in the financial trading industry. Everything they do and all the services they provide, are in place for the protection of you. CONSOB does this by safeguarding the integrity of the financial markets and prevent businesses from committing fraud and financial abuse. They achieve this level of protection by making it mandatory for all financial firms and entities providing services out of Italy to adhere to their strict regulatory guidelines.
The Italian Companies and Exchange Commission (CONSOB) has some of the strictest guidelines in the financial trading industry because they take a hard stance against so called high-risk investments. CONSOB’s main priority is to protect the interests of Italian investors and therefore requires that all Italian trading brokerages adhere to their strict guidelines and reporting. All CONSOB regulated brokers must pass intense examination to be rewarded with a licence to conduct financial services business in Italy.