Italy Fines Revolut Over €11 Million After Probe Into Investment Disclosures & Account Freezes

Key Takeaways

• Misleading “Commission-Free” Claims: The Italian Competition Authority found that Revolut failed to clearly disclose costs and limitations tied to its investment services, particularly around fractional shares.
• Account Restrictions Under Fire: Regulators cited aggressive practices in how Revolut Bank UAB and Revolut Group Holdings Ltd managed account suspensions, including lack of notice, limited transparency, and insufficient customer support.
• IBAN Transparency Gaps: Customers were not given clear information on how or when they could obtain an Italian IBAN, leading to additional penalties.
• Multi-Pronged Enforcement: The €11 million fine reflects separate violations across investment disclosures, banking operations, and customer communications under Italy’s Consumer Code.

Deep Dive

Italy’s competition authority has handed Revolut more than €11 million in fines, concluding that the fintech group misled customers about its investment offering and used heavy-handed practices when restricting access to bank accounts.

The ruling from the Italian Competition Authority pulls together a series of concerns that will feel familiar to regulators across Europe. At its core is a simple issue: what customers were told upfront versus what they experienced in practice.

A €5 million portion of the penalty targets Revolut Securities Europe UAB and Revolut Group Holdings Ltd over how investment services were presented to users.

The Authority found that key details were missing from the outset, particularly around the costs and limitations tied to “commission-free” trading. That included the use of fractional shares, which differ from full shares in ways that matter, ranging from ownership rights to how easily they can be transferred.

Those differences, the regulator said, were not clearly explained when customers first engaged with the platform, raising concerns under Italy’s Consumer Code provisions on misleading practices.

Account Restrictions Without Clear Guardrails

Another €5 million fine was imposed on Revolut Group Holdings Ltd and Revolut Bank UAB for how account suspensions and limitations were handled. Here, the issue wasn’t just that accounts were restricted, it was how. According to the Authority, customers were not given sufficient information beforehand about when or why restrictions might occur, nor were they consistently given advance notice or a meaningful chance to respond.

Once restrictions were in place, the level of support provided also fell short. In some cases, users were left unable to access their funds for extended periods, creating practical consequences for day-to-day financial needs.

The Authority viewed these practices as aggressive and potentially capable of influencing consumer decisions in ways that breach multiple provisions of the Consumer Code.

Confusion Over IBAN Transition

A further €1.5 million fine relates to how Revolut communicated the process for obtaining an Italian IBAN. Customers were not given clear or complete information about the requirements or timeline for moving from a Lithuanian IBAN to an Italian one. That lack of clarity, the regulator said, again crossed the line into misleading conduct.

Regulators are increasingly focused on whether digital-first financial services match the clarity and predictability expected in more traditional banking environments. For firms operating across borders, “free” needs to be fully explained. Product differences need to be clear before a customer signs up, not after. And when access to funds is restricted, the process around it has to be transparent, timely, and fair.

Disclosures, customer communication, and operational processes, particularly around account controls, are no longer peripheral issues. They are squarely in the regulatory spotlight.

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