Bloxham’s ISE membership revoked

The now defunct Bloxham Stockbrokers’ membership of the Irish Stock Exchange has been revoked, which means it could miss out on a lucrative payout when the ISE is demutualised.

Bloxham went into liquidation on Jun 25 when it emerged that the regulatory capital had been overstated by €5m over a number of years.

The Irish Stock Exchange said it had revoked Bloxham’s membership of the exchange pursuant to Rule 2.15 of the Rules of the ISE, which states: “If a member firm has ceased to carry on business on the ISE for a period of six months or more, its membership may be revoked by the ISE, by notice in writing to such member firm.”

This means that Bloxham is no longer a trading member of the ISE and no longer a guarantor of the Irish Stock Exchange Limited.

The ISE is a company limited by guarantee. Bloxham was one of seven guarantors of the exchange.

The remaining guarantors are: Campbell O’Connor and Co; Dolmen Stockbrokers; Goodbody Stockbrokers; J&E Davy; NCB Stockbrokers Limited; and Royal Bank of Scotland.

Bloxham’s removal from the ISE may affect its share of the proceeds when the exchange is demutualised. The stockbroking firm had listed its stock exchange membership as an asset in documents lodged with the High Court in Dublin on May 31.

It said in the filings that it would stand to benefit from a sale of the exchange, a firm that is limited by guarantee. It valued the investment at €6.3m.

The ISE declined to comment.

Bloxham was the oldest stockbroking firm in Ireland when it collapsed.

The financial irregularities emerged when the Central Bank uncovered anomalies in its capital position.

It transpired that the company had been overstating its capital position going back to 2007. Davy acquired Bloxham’s private client division. At the time of its collapse, Bloxham had liabilities of €13.9m — with €2.3m owed to Revenue.

The liquidation is being handled by Kieran Wallace at KPMG.

Bloxham’s partners are liable for the debts remaining at the end of the liquidation process.

* Additional reporting by Bloomberg


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