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DAVY HAS APPOINTED the consulting firm Alvarez & Marsal to carry out an internal review of its operations as a result of the controversy over the bond agreement that has rocked the company.
The stockbroker said in a statement tonight that the professional services firm will participate in a “forensic assessment” of staff trading over the past seven years and any other relevant activity.
It follows the recent record fine imposed on Davy by the Central Bank for a series of regulatory violations in 2014.
The investigation will be led by Paul Sharma, Managing Director of Alvarez & Marsal Financial Services in London and head of regulatory practice, and carried out by a London-based team.
Davy said in a statement that Alvarez & Marsal had no known prior connection to the firm.
“The review will include a forensic assessment, the scope of which will be determined by Alvarez & Marsal, of the relevant personnel exchange from 2014 to 2021 and any other relevant activity,” said Davy.
It will also assess the adequacy of better compliance, controls and governance designed to prevent conflicts of interest.
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The statement added that Davy’s board is committed to sharing the investigation’s findings. The deadline for completing the review has not yet been disclosed.
Two weeks ago, the Central Bank imposed a fine of 4.1 million euros on Davy after an investigation found four breaches of market rules by the company between 2014 and 2016 in connection with a bond transaction.
The scandal has led to the resignation of three senior Davy figures, as well as the closing of the company’s bond desk after the National Treasury Management Agency withdrew its authority to act as the main dealer of Irish government bonds.
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