Italy's competition authority has opened a probe into some units of Revolut over alleged unfair practices in investment services.
According to Reuters, Revolut allegedly misled its customers and clients, promoting investments in shares by emphasising the absence of commissions and failing to flag additional costs and limitations.
In addition, Revolut also stated that it is fully cooperating with the Italian competition authority, but at the moment cannot comment on specific details due to the ongoing nature of the probe.
More information on Revolut’s probe into alleged unfair practices
Italy's watchdog also reproached Revolut for its disclosures on cryptocurrencies, failing to make clear that clients and users would not be able to modify their stop-loss and take-profit settings in order to manage their risk. At the same time, it also mentioned that the institution omitted or provided information in an unclear manner when it comes to its terms and conditions for suspending or blocking accounts.
In addition, customers were allegedly not given adequate notice or assistance in this process, which resulted in long periods during which they could not access their funds at all. According to the watchdog, Revolut did not make clear that its so-called zero-fee products included fractional shares, which are significantly different from whole stocks in terms of voting and transfer rights.
The regulator and Italy's finance police also carried out inspections at the Italian premises of Revolut Bank UAB. At the moment, under Italian legislation, breaches of consumer rights rules have the possibility to lead to fines that range from EUR 5.000 to EUR 10 million.
