Warning after unauthorised firm clones Davy contact details

People passing Davy stockbrokers in Dublin. Photo: Niall Carson/PA Wire

Charlie Weston Twitter Email

April 14 2021 12:10 PM

EMBATTLED stockbroker Davy has had its some of contact details cloned by an unauthorised investment firm.

J & E Davy was hit with a record €4.13m fine and a reprimand for serious regulatory breaches by the Central Bank in the past few weeks.

Now the stockbroker’s name is being used by an investment business that has no connection with it and is not authorised.

The Central Bank said that the owners of the websites and email addresses at www.Davybonds.com and www.Davygroupbonds.com have been operating as an investment firm/investment business firm in the State in the absence of appropriate authorisations.

Regulators said the owners of the websites cloned the name and registered address of J & E Davy, which is a Central Bank-authorised firm.

Members of the public were targeted via commonly used search engines to leave their personal details in an online contact form.

The Central Bank said in a statement: “It should be noted that there is no connection whatsoever between the Central Bank-authorised firm and the unauthorised entity.”

The warning about the unauthorised use of the Davy name comes a month after Ireland’s largest stockbroker was fined €4.1m by the Central Bank.

It follows revelations that 16 of its staff, including individuals in managerial roles, had set up a consortium to purchase Anglo Irish Bank bonds which were subsequently sold to a client of Davy, without the client’s knowledge of who the sellers were.

In its judgement, the Central Bank said: “Davy prioritised facilitating an opportunity for the consortium to make a personal financial gain over ensuring that it was complying with its regulatory obligations.”

Senior managers subsequently resigned and the stockbroker also closed its bond desk, and has said that all 16 of its staff involved in the controversy no longer work in the firm.

The controversy saw the National Treasury Management Agency (NTMA) withdraw Davy’s ability to act as a primary dealer of Irish Government bonds.

The Central Bank published warning notices against five unauthorised firms, including the one claiming to be Davy, that hold no authorisation from the Central Bank.

Other firms warned about were Money Finance, which is trading as Swift Loans. It is an unauthorised retail credit/moneylending firm.

The Central Bank also warned that Inter Standard Credit, Current Finance Loans and Loans on Click are unauthorised retail credit firms.

It is a criminal offence for an unauthorised firm to provide financial services in Ireland that would require an authorisation under the relevant legislation for which the Central Bank is the responsible body for enforcing.

Consumers were warned that if they deal with a firm that is not authorised they will not be eligible for compensation from the Investor Compensation Scheme.