DAVY HAS APOLOGISED “unreservedly and unequivocally” in a public statement for failures that emerged from a Central Bank investigation.

The board of stockbrokers Davy has released a public statement after the Central Bank yesterday levied a fine of €4.1 million against the company.

The regulator announced its findings after an investigation revealed four breaches of market rules by Davy stockbrokers between 2014 and 2016.

It’s understood to be the largest fine a brokerage in Ireland has ever faced.

The Central Bank said it had determined that €5.9 million would be the appropriate fine. This was reduced by 30% to €4,130,000 “in accordance with the settlement discount scheme provided for in the Central Bank’s Administrative Sanctions Procedure,” because Davy reached an early settlement agreement with the regulator.

In a statement today, Davy said it “deeply regrets” the shortcomings outlined in the investigation. 

It also apologised for failing to adhere to the “high standards expected of the firm both internally and externally”. 

Davy said compliance and governance at the firm has been subject to internal and external review. 

“A process of Board, management and staff renewal over recent years, has seen significant investment in processes, structures, people development and culture across the firm, most notably in areas such as compliance, risk, governance, people management and stakeholder communication,” a statement from Davy said. 

“Based on these actions and on third party professional assessment of same, the Board is
satisfied that the issues that occurred in 2014 could not recur.

“Davy and its Board has commenced a detailed review of the findings so as to ensure that lessons are learnt and appropriate actions are taken for the benefit of all stakeholders.”

Yesterday, the Finance Minister Paschal Donohoe called on Davy to comment publicly on the fine.

Donohoe said in the Dáil today that the company’s behaviour “falls greatly short of the standards” expected of those in positions of financial responsibility.

In a statement yesterday, the Central Bank said the issue at Davy related to a transaction involving the sale of bank bonds on behalf of “a client” of the brokerage.

The Central Bank would not comment any further on the matter and has not named the client or the Davy employees involved in the transaction. 

- With reporting by Ian Curran.