11 March 2021

Irish stockbrokers up for sale

11 March 2021

Ireland’s largest stockbroking firm has put itself up for sale.

Davy faced a fallout over its fine for breaching rules surrounding a bond deal in 2014.

A state body withdrew the company’s authority to act as primary dealer in Irish Government debt.

Finance Minister Paschal Donohoe said: “Davy is an important financial services firm employing approximately 700 people with a diverse range of institutional, retail, charity, credit union and corporate clients.”

He added: “It is important to have a stable, well managed, local stockbroking community to support indigenous companies.

“For this reason I am supportive of this evening’s announcement.”

The National Treasury Management Agency provides a range of asset and liability management services to Government.

It has described Davy’s behaviour as falling substantially short of the standards expected.

On 1 March 2021, the Central Bank of Ireland reprimanded and fined J&E Davy (Davy) 4.1 million euros in respect of breaches of the European Communities (Markets in Financial Instruments) Regulations 2007 that occurred over different intervals between July 2014 and May 2016.

The Irish Times reported on Wednesday that Bank of Ireland, the Republic’s largest bank by assets, had made an “exploratory approach” to Davy.

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