Advertisements in yesterday's newspapers warning that a company marketing itself as an investment firm does not have the necessary authorisation are the first such notification under new powers recently given to the Central Bank, writes Colm Keena.Investment Program Management Inc (IPM), a company incorporated in Belize, is distributing marketing material stating it is engaged in the sale of options and a related collective investment product. The company gives an address in Baggot Street, Dublin, and states it has offices in Marbella, Spain. In July the company placed advertisements seeking Irish sales representatives.

IMP is not registered as having a telephone number in either Dublin or Marbella and it is possible that one or both are mailing addresses only. The Central Bank established that IPM is not authorised to act as an investment intermediary in any EU member state.

The bank placed advertisements to this effect yesterday under powers contained in the Investment Compensation Act 1998, the main object of which is the establishment of an investment compensation fund. The new law came into effect on August 1st.

The Central Bank's policy is to firstly approach companies operating as investment firms without proper authorisation and request them to desist. If it meets with no success, the bank then proceeds to place advertisements advising the public. All companies operating or promoting themselves as investment firms in Ireland must be authorised to do so by the Central Bank.