Italian Companies and Exchange Commission (CONSOB)

Basic Information

The Italian Companies and Exchange Commission (CONSOB, Commissione Nazionale per le Società e la Borsa) is the government authority responsible for regulating Italy’s financial markets. Established in 1974, CONSOB operates under the framework of European Union financial laws, including MiFID (Markets in Financial Instruments Directive), ensuring compliance with EU-wide financial harmonization standards. Its primary mandate is to protect investors while promoting market transparency, efficiency, and development.

Historical Background

CONSOB was founded in 1974 as part of Italy’s financial regulatory reforms. Over its 50-year history, it has evolved to adapt to changing market dynamics, including Italy’s integration into the EU financial system. CONSOB plays a key role in enforcing EU financial regulations while addressing local market needs. In 2024, CONSOB celebrated its 50th anniversary, marking decades of oversight in Italy’s securities and derivatives markets, including forex trading activities.

Legal Authority and Regulatory Framework

CONSOB derives its authority from Italian legislation and EU financial regulations. Its oversight extends to:

• Implementation of MiFID II and other EU financial directives
• Enforcement of Italy’s Consolidated Law on Finance (Testo Unico della Finanza)
• Supervision of investment firms, including forex brokers operating in Italy
• Regulation of public offerings and transparency requirements for listed companies

The commission has sanctioning powers, including fines, business suspensions, and license revocations for regulatory violations.

Main Responsibilities and Scope of Supervision

CONSOB’s regulatory purview covers multiple aspects of financial markets:

• Securities Market Oversight: Monitoring stock exchanges, bond markets, and investment funds
• Investor Protection: Ensuring fair treatment of investors and proper risk disclosure
• Market Abuse Prevention: Combating insider trading and market manipulation
• Financial Intermediary Supervision: Regulating brokers, asset managers, and investment firms
• Forex Market Regulation: Overseeing forex brokers offering services to Italian clients, with maximum leverage capped at 1:30 for retail traders
• Fintech and Innovation: Monitoring emerging financial technologies like cryptocurrencies

Contact Information

CONSOB maintains multiple contact points for different inquiries:

• Headquarters: Via G.B. Martini, 3 – 00198 Rome, Italy
• Milan Office: Via Broletto, 7 – 20121 Milan, Italy
• Phone: +39 06 84771 (main switchboard)
• Fax: +39 06 8477 7377
• Email: [email protected] (general inquiries)
• Public Information Service: [email protected] (media relations)
• Operating Hours: Monday-Friday, 9:00-17:00 (local time)

How to Verify Regulatory Status

To confirm if a financial entity is CONSOB-regulated:

1. Obtain the firm’s name or registration number from its website or documentation
2. Visit CONSOB’s official website and navigate to the “Market Participants” section
3. Search through three categories of investment firms:
   • Italian-registered investment companies
   • EU firms with Italian branches
   • EU firms operating in Italy without local branches
4. Verify the firm’s authorization for forex services specifically, as CONSOB separates general investment services from forex activities

For EU-authorized firms, cross-check with their home country regulator for additional details about their license scope.

Investor Complaint Process

CONSOB provides a structured dispute resolution mechanism:

1. First attempt resolution directly with the broker
2. If unresolved within 60 days, file with Italy’s Arbitrator for Financial Disputes (ACF)
3. ACF cases must involve claims below €500,000 with no parallel proceedings
4. Final recourse remains with Italian courts if ACF resolution proves unsatisfactory