I have not engaged directly with J and E Davy regarding the investigation and sanction by the Central Bank of Ireland but the Deputy will be aware of statements I have made on the matter since it emerged into the public domain, reflecting the seriousness in which I view the matter.
The Deputy will also be aware of the decision by the Board of the NTMA on 8th March to withdraw J & E Davy’s authority to act as a primary dealer in Irish Government bonds. I note and support this decision. This is the appropriate decision given the recent very serious findings of the Central Bank.
State Bodies which have commercial relationships with private companies keep those engagements under review, and are best placed to do so, to ensure the best and most appropriate use of taxpayer’s money. My Department has in place a procurement framework which allows the Department to seek and obtain advice on financial matters such as the future disposal of the State’s banking sector investments. Contracts are awarded following a competitive Request for Tender procedure between members of the Framework. Firms were appointed to the Framework for an initial period of three years (up to October 2021) with an option to extend by one additional year (up to October 2022). Davy are one of twelve firms on Framework Lot 3 - capital markets distribution services. No contracts have been awarded under Lot 3 since the Framework was constituted and as such the Department does not currently have a commercial relationship with J & E Davy.
