Ireland’s largest broker is shutting down its bond office after losing its mandate to sell government debt following a damning regulatory investigation that had already prompted the resignation of three of the broker’s top executives.
The Davy Group said Monday evening that the shutdown, with four layoffs, was “due to recent developments” which included a central bank investigation and the loss of Davy’s tenure as the main government bond broker following a decision by the Irish treasury agency earlier Monday. .
The Central Bank of Ireland last week fined the Davy Group $ 4.1 million after finding that 16 of its employees, including some senior executives, had secretly bought bonds from a client in 2014, then aimed to profit by reselling them.
Davy said that following the layoffs, “none of the people involved in the 2014 transaction work at Davy.” A person familiar with the situation said people would benefit from industry standard redundancy, without specifying what it was.
Davy, a 95-year-old private company that has been a stronghold of Irish business, was lambasted for failing to put in place controls to ensure conflicts of interest were managed and staff could not use their personal accounts to take advantage of the client. offers.
The broker was also criticized for providing “vague and misleading details” to the central bank’s investigation and for “willfully” withholding disclosure.information this…
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