Sinn Féin spokesperson on Finance Pearse Doherty TD has described the Minister for Finance Paschal Donohoe’s response to the Central Bank’s €4.13 million fine against Davy Stockbrokers as weak on accountability and deeply disappointing.

The Donegal TD called on Minister Donohoe to urgently bring forward legislation providing for a Senior Executive Accountability Regime, years after it was first requested by the Central Bank, and also called on the NTMA to disclose and review its relationship with Davy.

The Central Bank yesterday fined Davy Stockbrokers €4.1 million for breaching market rules in a transaction that personally benefited a number of its own senior executives.

Teachta Doherty said:

“The response by the Minister for Finance on RTÉ Radio this morning to the €4.13 million fine of Davy Stockbrokers was deeply disappointing.

“This fine was made as a result of a transaction that breached market rules and personally benefited a number of senior executives at Davy.

“It has been reported across numerous media sources that among those who were involved in the transaction was the current CEO of Davy.

“The transaction, which involved 16 Davy employees, adds a new twist to the Davy slogan that ‘It’s not just business. It’s personal’.

“What the Minister failed to express was his concern that no individual will be held accountable for breaching market rules, side-stepping compliance and personally benefitting from these actions.

“It is over three years since the Central Bank called for a Senior Executive Accountability Regime, codified in legislation.

“The Minister has shown no urgency is publishing this legislation and bringing it to the Dáíl.

“Yesterday’s events highlight the government’s failure to ensure individual accountability across the financial services sector.

“The legislation underpinning SEAR must be published and brought to the Dáil as a matter of urgency.

“These events also raise serious questions around Davy’s relationships with sections of the state.

“Only last month, the NTMA, which manages the assets and liabilities of the state, appointed Davy to manage the auction of government bonds worth €5.5 billion.

“The NTMA, a public body, should now clarify and review its relationship with Davy.

“It is notable that Davy’s current chairman is himself former director of the NTMA.

“We cannot allow relationships to develop between state bodies and organisations that act with financial impropriety, breach market regulations and mislead the regulator in its investigations.”