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Serious questions remain for Davy and Government over Central Bank investigation – Pearse Doherty TD

10 March, 2021 - by Pearse Doherty TD

Sinn Féin spokesperson on Finance, Pearse Doherty TD, has said that serious questions remain for both the Government and Davy Stockbrokers regarding the Central Bank investigation into the 2014 transaction which resulted in a €4.13 million fine against the firm.

Speaking this afternoon, Teachta Doherty said:

“Serious questions remain for both Davy Stockbrokers and the Government in light of the €4.13 million fine meted out by the Central Bank for practices within the firm regarding a 2014 transaction.

“While it is welcome that the NTMA have cut all ties with Davy, we do not know if any of the Davy 16 are currently working or hold positions in regulate firms, State agencies or Government Departments.

“The Government needed to clarify if they have made enquiries to determine if this is the case.

“Furthermore, as I said in the Finance Committee yesterday, while senior executives resigned from J&E Davy on Monday, many of the key players in this scandal remain directors of companies that have major shareholdings and voting rights in the organisation.

“As the Central Bank confirmed yesterday, Davy frustrated the work of the regulator throughout its investigation.

“This raises serious concerns over the suitability of the new interim CEO of Davy, who was a member of the board of Davy during this period.

“The Interim CEO should now clarify his role, knowledge and participation in frustrating the Central Bank in its investigation of the firm.

“Reports that Bank of Ireland, a bank in which the State is the largest shareholder, are now considering the acquisition of Davy are extremely concerning.

“The Government have opened the door for such an acquisition to dodge the banker bonus levy after it allowed AIB to circumvent the banker bonus levy after acquiring Goodbody last week.

“How can the Minister for Finance consider this appropriate when serious questions remain over the Davy organisation and how it operates?

“Finally, the Central Bank have been calling for greater powers to hold individuals to account in the financial sector, underpinned by legislation, since 2017.

“The Government have sat on this legislation for years.

“After more than three years, the Minister for Finance hasn’t even drafted the Heads of Bill of the legislation.

“This is simply not good enough, sending all the wrong signals to the financial sector and showing that Fine Gael have little interest in individual accountability in the sector.

“The Minister has dragged his heels for years. He must publish the legislation urgently.”

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