The Central Bank of Ireland on Monday issued a warning against an offshore brokerage firm called 8888Markets as the company has been providing financial services to the country’s residents without regulatory permission, according to an official announcement.
8888Markets is a provider of a CFD/FOREX trading platform and financial advisory services on a broad spectrum of asset classes.
However, the central bank today clarified that the firm in question has been offering investment services to the Irish public while not authorized as an investment firm in Ireland.
Tales from TIOmarkets: Not Just Another Trading CompetitionGo to article >>
The regulator said that it is a criminal offense for an investment firm to operate in Ireland unless it has authorization from the nation’s central bank. The central bank was adamant in its explanation, claiming that any individuals who opt to invest funds with 8888Markets will not be eligible for compensation in any form under the Investor Compensation Scheme.
The central bank urged anyone offered financial services via cold calls or email to make additional checks to ensure that the entity they are dealing with is authorized. It also advised investors to contact the authority if they are approached by such firms.
Last year, Finance Magnates reported that the Central Bank of Ireland is preparing action to revamp the retail forex and CFDs offering to retail clients. The financial supervisor has issued a consolation paper that focuses on the issues related to financial trading products for retail investors.
Focusing on CFDs products, the Bank of Ireland says that it is preparing action to tackle the high risks for retail clients. The authority is looking for feedback from clients and brokers alike.