The Central Bank of Ireland today issued a warning against US-based investment firm Genworth Consultant Group as the company has been providing financial services to the country’s residents without regulatory permission, according to an official announcement.
Genworth Consultant Group is a provider of financial advisory services on a broad spectrum of sectors including capital markets, futures and energy trading, securities, mergers and acquisitions.
However, the central bank today clarified that the firm in question has been offering investment services to the Irish public while not authorised as an investment firm in Ireland.
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The regulator said that it is a criminal offence for an investment firm to operate in Ireland unless it has authorisation from the nation’s central bank. It further warned that investors should be aware that if they deal with an unauthorised entity they will not be eligible for compensation from 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 authorised. It also advised investors to contact the authority if they are approached by such firms.
Earlier this 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.