Firm’s directors could be liable for millions

The directors of Bloxham Stockbrokers could be liable for millions of euro in losses if the Central Bank probe uncovers any further financial irregularities at the company.

The move by the Central Bank to protect the account holders instead of the firm has wiped out the value of the equity stakes held by the partners in Bloxham.

The Central Bank could have asked the directors to put more capital into the company so it would meet the minimum capital requirement of €5.8m for a regulated firm of its size.

The Central Bank instead chose to move the accounts to Davy Stockbrokers, essentially wiping out Bloxham.

Bloxham has nine partners, eight of whom are involved in unlimited partnerships. The other partner is FBD insurance, which holds an 11.6% stake in the company.

FBD refused to comment on the situation but confirmed it had a limited liability equal to its shareholding in the company.

The other partners at the centre of Bloxham are: managing partner Pramit Ghose; head of asset management Niall Tinney; head of private clients Paddy Finnegan; head of institutional bonds Peter Costigan; head of institutional equities Patrick Dempsey; partner in institutional equities Raymond Deasy; and head of finance and compliance Tadhg Gunnell.

Mr Gunnell has been suspended as Bloxham awaits the outcome of the Central Bank probe.

“On foot of their initial investigations the remaining partners in the firm, who were unaware of these issues, have asked a firm of forensic accountants to verify the position and assist in further investigations,” a spokesperson for Bloxham said.