Davys ordered to withdraw credit union investments

Davy Stockbrokers has been instructed to withdraw investments it made in a credit union.

The Financial Ombudsman says the company failed to properly advise Enfield Credit Union about the high risk of three bonds which were at a level that did not ensure security of capital.

The Ombudsman, Joe Meade, says the bonds have no maturity date nor do they have step-up clauses and are subordinated.

Davy's has been told to refund all fees and commissions paid in relation to the purchase of the bonds.

The stockbrokers is now challenging the constitutionality of the Ombudsman's powers in the High Court.