Central Bank's €4.1m fine 'only a start' in Davy's accountability, says opposition

The Central Bank fined the stockbrokers earlier this week with a €4.1m fine-a record sanction for the regulator. 

Roisin Shortall, co-leader of the Social Democrats, said the Central Bank needs to explain why it took them so long to impose the €4.1m fine.  Picture: Gareth Chaney/Collins

There are calls for a wider inquiry into trading practices at Davy Stockbrokers and personal sanctions for those involved in a 2014 bond deal.

Four days of mounting pressure following a Central Bank inquiry led to the resignation of its chief executive and two senior figures in the firm yesterday.

Opposition parties have written to the governor of the Central Bank saying the fine of €4.1m is not enough.

Sinn Fein spokesperson on Finance Pearse Doherty TD said further questions need to be asked. Picture: Gareth Chaney/Collins

Sinn Féin's Finance Spokesperson Pearse Doherty has said there must be a full inquiry into all 16 individuals involved in the deal.

He said that Davy deal with too much State money for light-touch regulation to continue.

"Davy sell bonds on behalf of the Irish State and deal in billions of euro on our behalf, we want to know who are the other 13 individuals and are they still working within the Davy organisation? 

"Will they be held individually accountable? Are they now in serious positions and if they have moved on what other positions have they had?  

"Because the practice that happened here in 2014 is simply unacceptable and cannot be tolerated in any way, shape or form," said Mr Doherty. 

Opposition politicians have also said the Central Bank must explain why it took so long to take action against Davy Stockbrokers over a 2014 bond deal.

Social Democrats co-leader Róisín Shortall said individuals must be held responsible and called on the Central Bank to explain the delay in imposing the €4.1m fine.

"We need to know from the Central Bank why it was it took five years for them to impose this fine and have some level of accountability. 

"But that is only a start in relation to accountability. These individuals benefited financially themselves, they need to address that fact, but they also need to address the fact that they weren't in compliance with senior company people," said Ms Shortall.

Yesterday, chief executive Brian McKiernan, non-executive director and deputy chairman Kyran McLaughlin, and Barry Nangle, head of bonds at the firm, resigned from their positions after the Central Bank sanctioned the stockbroker with a €4.1m fine, the largest ever handed out by the regulator. 

However, this had followed an intense week of scrutiny after Davy botched its initial response to the Central Bank findings when first announced on Tuesday and mounting political pressure. 

The Central Bank fined the firm after Davy failed to supervise a group of 16 of its own employees in their personal account dealings in the sale of Anglo Irish bonds for a client in late 2014.

Yesterday Davy said it “deeply” regretted its “shortcomings” as revealed by the Central Bank’s investigation.