Broker settles action against Goodbody, IFRSA

A LEGAL action by multimillionaire stockbroker Bruce Ashmore against his former employer, Goodbody Stockbrokers, and the financial regulator was settled at the High Court yesterday.

No details of the settlement were disclosed but the court was told it involved “no payment of damages or costs” to Mr Ashmore by Goodbody, its parent companies or the regulator.

After the settlement, Mr Ashmore, former Goodbody head of equity trading, said: “I live to fight another day.” His wife Edel said they were delighted the case was over and “delighted with the outcome”.

The proceedings arose because of a delay in Mr Ashmore securing the necessary licence and authorisation from the financial regulator, IFSRA (Irish Financial Services Regulatory Authority), to set up a hedge fund, Pilot View Capital (PVC) Ltd, after Mr Ashmore departed Goodbody’s in late 2001. PVC was granted authorisation by IFSRA on January 26, 2005 to act as an investment business firm. It was incorporated in June 2002.

Mr Ashmore claimed that delay in securing authorisation was caused by an allegedly unsatisfactory reference from Roy Barrett of Goodbody’s and had cost him millions of euro. In his legal action, it is understood he had sought damages of €22 million.

After the proceedings were brought by Mr Ashmore against both Goodbody’s and IFSRA, the licence was awarded and Mr Ashmore has since secured the approval to be a director and shareholder of the fund, which he set up with his business partners, Johnny Fortune, Gerry O’Reilly and Paddy Shanahan.

The action by Mr Ashmore has been in preparation for some time and the intention to bring it was signalled by Mr Ashmore while he was giving evidence during the High Court action last year by Fyffes against DCC. Mr Ashmore told the High Court during the Fyffes proceedings that he had left Goodbody in 2001 to set up a hedge fund but encountered difficulties because, he alleged, his former boss, Mr Roy Barrett, wrongfully told the financial regulator that Mr Ashmore was to blame for compliance issues allegedly raised by the regulator with Goodbody.

The action was due to open yesterday and was expected to run for six to eight weeks.

However, after day-long talks, Mr Brian O’Moore SC, with Mr Patrick Hunt SC, for Mr Ashmore, said the case had been settled on the basis of two statements to be read to the court regarding both defendants.

In relation to the claims against Goodbody, that case was settled, it was stated. The issues which existed between the parties at the commencement of the proceedings had been resolved and any existing orders for costs in favour of any party were to be dissolved.

Regarding the claims against IFSRA, the court was told that Mr Ashmore withdrew any allegations of bad faith against IFSRA, and accepts they acted in good faith.

Mr Justice Frank Clarke struck out the proceedings.