'Public interest to know' before sale of scandal-hit Davy progresses much further     

People passing Davy stockbrokers in Dublin

The public has an overwhelming interest in Davy publishing a report into other possible questionable deals before the sale of the scandal-ridden broker progresses further, opposition finance spokespeople have told the Irish Examiner.

Sinn Féin finance spokesperson Pearse Doherty and Labour's Ged Nash said the public need to know the findings of the report commissioned by the Davy board over two months ago from consultancy Alvarez and Marsal before it narrows its shortlist of potential buyers.

The calls come as the pace of the sale process appears to be quickening, with potential bidders likely to be given access to confidential financial information. 

Even though final regulatory approval may not be given before the end of the year, the sale of Ireland’s largest stockbroker may effectively be concluded in as little as eight weeks' time with the naming of a preferred bidder and before the internal review is made public.

“This internal investigation needs to be made public - we would be looking for a clear timeline because a timeline wasn’t given when they initiated this in March,” Mr Doherty said. 

Mr Nash said senior Davy executives had given the impression the report "would be shared" before the sale of the broker. 

“My interpretation of the word 'shared' was that it would be published before any sale,” the Labour Party finance spokesperson said.

Staff consortium

Details of the scandal unfolded in early March when the Central Bank said, following a multi-year investigation, that it had fined Davy €4.1m over its failure to detect wrongdoing in a 2014 sale of Anglo Irish bonds. 

The Central Bank report detailed the lack of "candour" when it first started asking questions of the firm, in 2015.

The transaction involved what the Central Bank called "a consortium" of 16 staff that included senior management shareholders. 

The group directly profited from their participation in both sides of the trade, without the knowledge of the client. Davy appeared at first to play down its culpability but within days of the fine, senior personnel and prominent shareholders had exited the broker.

Davy was stripped of its role as a primary dealer to the National Treasury Management Agency, a role that had for three decades placed it at the centre of Government as a seller of Irish sovereign bonds.

As it fought to contain the fallout, Davy put itself up for sale and appointed investment firm Rothschild as adviser. 

On March 16, it named Alvarez and Marsal to review "relevant staff trading from 2014 to 2021 and any other relevant activity” and to “also assess the adequacy of enhanced compliance, controls and governance designed to prevent conflicts of interest”.

Mr Nash said the internal report was “designed to satisfy potential buyers” and not address public concerns. 

Mr Doherty said he was not expecting "every name and every trade" to be made public but the public will need to be informed whether there have been other questionable trades before the sale process progresses. 

Davy has in recent days said its "fully independent review" was "progressing well” but has given no specific indication of a publication date.