The Central Bank of Ireland has issued an official warning on its website, urging the public to beware of conducting any type of activity with Global Ace Investment Limited, a Hong Kong-based investment firm.
The reason behind the warning specifies that the aforementioned entity is not authorized to operate in Ireland or 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 with 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 licenses, and authorizes investment firms that want to operate in the country.
Global Ace Investment Limited is now on the official warning list on the central bank’s website, the main purpose of which is to protect Irish citizens from financial wrongdoing by recording companies engaged in unlawful activity.
As previously reported by Finance Magnates, Ireland’s central bank has 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 strengthened with an overhaul of the financial regulatory framework in relation to FX and CFD trading. The main issue with CFD trading was the high risks associated with this investment product.
At the time, the bank said that high leverage and a lack of negative balance protection place investor funds at risk beyond the impact of typical market volatility.