Credit union sues over bonds advice

A CREDIT union suing stockbroking firm J & E Davy over €5 million losses allegedly suffered due to Davy’s advice to invest in certain perpetual bonds, may bring an additional claim that Davy failed to act honestly in not disclosing it was also the seller of some of the bonds involved, and had made “a secret profit” on their sale.

The E-services and Communications Credit Union of Dawson Street, Dublin, has brought a motion seeking to amend its case to plead Davy failed to act honestly and fairly by not disclosing it was the vendor of at least some bonds, particularly the Juyske and Oko bonds, and leading the credit union to believe instead the bonds were being purchased from others.

The motion alleges Davy breached its fiduciary duty not to put itself in a conflict of interest position, and was making a secret profit in relation to such sales.