Three senior figures resign from Davy after Central Bank €4.1m fine

Three senior Davy figures have resigned from the financial services firm days after the Central Bank issued it with a €4.13m fine.

EO Brian McKiernan, deputy chairman Kyran McLaughlin and head of bonds Barry Nangle will leave the company immediately.

On Tuesday, Davy Group was hit with the record fine from the Central Bank over conflicts of interest relating to a bond deal in 2014. The fine is widely understood to relate to a deal in which businessman Patrick Kearney and his Kilmona Holdings Ltd sold Anglo Irish Bank bonds via Davy at a steep discount in order to settle a debt – without knowing the buyers were 16 Davy employees who went on to sell the assets at a profit.

In a statement today that company said: “The Board of J&E Davy has today accepted the resignation of Brian McKiernan as CEO and as a Board Director of the firm. The Board has also accepted the resignations of Kyran McLaughlin from his role as a non-executive Director and of Barry Nangle from his executive role as Head of Bonds at Davy.

“All three offered to step down subsequent to the recent Settlement Agreement between Davy and the Central Bank of Ireland in respect of its investigation into a bond transaction that occurred in 2014. These resignations have been accepted and take effect immediately.”

“As outlined earlier this week, Davy deeply regrets the shortcomings that emerged from the Central Bank of Ireland’s investigation and apologises unreservedly and unequivocally that these failures occurred.

John Corrigan, Chairman J&E Davy said: “In accepting their resignations, I acknowledge their substantial contribution to the development of the company over many years.

“As we reflect on the Central Bank investigation our priority now is to restore trust in the integrity and robustness of our control environment and culture, and to ensure we provide our clients with the standard of service and protection that I know our people are committed to.”

Bernard Byrne, deputy CEO of Davy has been appointed Interim CEO. This appointment is subject to approval by the Central Bank of Ireland.

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