The Central Bank of Ireland has issued an official warning on its website, urging the public to beware of conducting any type of activity through Global Ace Investment Limited, a Hong Kong based investment firm.
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The reason behind the warning specifies that the aforementioned entity is not authorized to operate in Ireland, not is it permitted to offer its services to residents of the country.
The warning further mentioned that the company is not permitted to offer any financial advice, although it was not specified whether the firm violated those regulatory confinements.
The central bank was adamant in its explanation, claiming that any individuals who opt to invest funds through Global Ace Investment, will not be eligible for compensation in any form, under the Investor Compensation Scheme.
The Central Bank’s Responsibilities
Ireland’s central bank is responsible for issuing licensing and authorizing investment firms, to operate in any capacity within the country.
Global Ace Investment Limited is now on the official warning list on the central bank’s website, whose main purpose is to prevent any wrongdoing over its residents, as well as the unlawful activity of companies in the region.
As previously reported by Finance Magnates, Ireland’s central bank had previously issued similar warnings against other financial investment companies. In August of last year, the bank added Genworth Consultant Group to the same list, in response to the company’s offering of services in Ireland without regulatory permission.
The bank’s stringent policies were further analyzed, as an overhaul of the financial regulatory framework was being addressed in relation to FX and CFD trading. The main issue with CFD trading was due to the high risks associated with the products.
At the time, the bank cited investors’ risks associated with high leverage and a lack of negative balance protection, which further place investor funds at risk, beyond the impact of typical market volatility.
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