The FinancialThe Italian regulator Consob demanded from the CySEC regulated broker Hoch Capital to cease operations in the country. According to the regulator, the decision is dictated by the need to protect Italian investors from a company that has repeatedly violated the requirements and rules established by its own regulator.
Consob also stated that it was the first time they exercised the power to ban companies from promoting their products and services on the Italian market.
The statement said that the company Hoch Capital Ltd, the operator of the iTrader brand, did not rectify the violation even after several complaints addressed to the Cyprus Securities and Exchange Commission. The complaints addressed were about non-compliance with the requirements for advertising contracts for difference (CFD) to non-professional investors.
The company also violated the EU directive, according to which customers should be protected from a negative balance (in other words, the client should not lose more than he deposited). In addition, Consob accuses Hoch Capital employees of exerting pressure on customers to acquire additional deposits.
“The complaints refer, among others, to situations such as the total loss of the invested capital, the classification of the investor as a professional client in the absence of prerequisites and the pressures exercised by the personnel of the company to acquire additional deposits.,” the regulator said in a statement.
It is important to note that the Consob resolution is a precautionary measure regarding the company’s activities in Italy. The broker’s passport and permit for cross-border activities have not been revoked. The CONSOB prohibition will remain in effect until CySEC and the Company provide evidence of the elimination of critical violations on the Italian market.