Donohoe: Davy could be Government-nominated primary dealer again after sale

Finance Minister Paschal Donohoe has welcomed the decision of Davy to sell the company. Photo: Moya Nolan

Davy could be re-appointed as a Government-nominated primary dealer after the company is sold, the Finance Minister has suggested.

The country's largest stockbroker has put itself up for sale as it scrambles to deal with the fallout from a €4.1m Central Bank fine for its failure to supervise a group of 16 of its own employees in their 2014 profiting from personal dealings in the sale of Anglo Irish bank bonds.

Minister Paschal Donohoe has welcomed the decision of Davy to sell the company.

In the wake of the Central Bank fine, The National Treasury Management Agency (NTMA) stripped Davy of its authority to act as the primary dealer for Irish Government bonds.

Asked if this prestigious role could be returned to the company after it is sold, Mr Donohoe said this would be a matter for the NTMA but added: "I would imagine if there is a new owner for the company that will be relevant to the decision that they will make.

"But it will be one of many factors they will look at, and I would imagine what would be one of the biggest factors will be absolute clarity from Davy that the kinds of incident that did occur could not occur again in the future. Particularly, of course, in relation to business that the Irish State would do with Davy."

Statement regarding Davy decision to pursue sale of the Group here: https://t.co/NFNyxeawug

— Paschal Donohoe (@Paschald) March 11, 2021

Mr Donohoe said the company employs 700 people and plays a very important part in how Irish companies can raise money and fund themselves as well as how Irish individuals can look after their savings.

The minister said it is important that a "stable owner" for the company is found to "ensure that Davy can meet very important needs for people and for businesses within our country".

"I want to be clear in again saying that the behaviour and the incident at the heart of this is so far below the standards that we expect of those who are working in the financial sector," Mr Donohoe told Newstalk's Pat Kenny show.