ISE chief irked at Fyffes gagging order

THE Irish Stock Exchange is frustrated at its enforced silence on the latest developments in the DCC/Fyffes case.

Despite having submitted a file on its insider dealing investigation into DCC/Fyffes to the DPP several years ago, the chief executive of the stock exchange, Deirdre Somers, said because of legal reasons it cannot express its views on the case.

Ms Somers did admit the Fyffes/DCC case has been a difficult one for the stock exchange.

She was responding to a question put to her at a briefing yesterday when she was asked what regulatory powers the stock exchange have and why have they been so slow to use them in the DCC case.

She said: “First you have to realise this case goes back seven years, and seven years ago the stock exchange had powers, we were part of a process, we certainly weren’t the totality of the process. I can talk in the abstract but not in the specific.

“The stock exchange was responsible for identifying and investigating suspected incidents of insider dealing and if we believed there was a case to answer, we would investigate slightly further and then hand the file over to the DPP.

“Thereafter, not only did our role finish but because we were part of the investigative process everything relating to that case is sub judice until that case has been expunged or otherwise by the DPP.”

Ms Somers said nobody is more frustrated than herself or the organisation she represents that the stock exchange has been so silent on that case but explained this is for legal reasons.

She went on to say that now the regulatory system has changed and the sanctioning power has moved to the financial regulator, the DPP is out of it and insider dealing is now subject to the Market Abuse Directive that came in three years ago.

“The roles and responsibilities are far clearer than they were eight years ago.

“The fact the sanctioning body is now the financial regulator is a huge liberator for the stock exchange because I would say it is completely legitimate the public and investors in the Irish market would think the stock exchange should have a view on this matter.

“Unfortunately, because of legal constraints we have not been able to express that view.”

A spokeswomen from the office of the DPP, when asked about Ms Somer’s remarks said she couldnot comment on individual cases.

Cork-born Ms Somers was speaking at yesterday’s Cork Chamber breakfast briefing yesterday sponsored by the Irish Examiner.

She also said she can already see some life coming back to the fund markets, which she said is generally the most adept in responding to change.

“Money will always find a home. At the moment it’s being kept at home but it will go out to find a home but the big question is when,” she said.

Ms Somers added that the Irish thirst for property is always something she has found to be extraordinary.

“The concept that somebody would prefer to buy a Bulgarian apartment than CRH — I just don’t get that.”