Davy Group

Davy
IndustryFinancial Services
Founded1926 (Dublin, Ireland)
FounderJames and Eugene Davy
Area served
UK and Ireland
Key peopleBernard Byrne (Interim CEO)
Number of employees
700+
ParentBank of Ireland
DivisionsWealth Management, Asset Management, Capital Markets, Corporate Finance, Research
Websitewww.davy.ie

Davy Group is an Irish provider of wealth management and investment banking services and has offices in Dublin, Belfast, Cork, Galway and London. Davy offers services to private clients, small businesses, corporations and institutional investors.

As of 2007, Davy was an independent company employing over 700 people. The company's ownership was held its management and staff. In 2021, Davy "put itself up for sale" as a result of fines imposed by the Central Bank of Ireland for violations of market rules. The sale was completed, to Bank of Ireland, in mid-2022.

Description

Davy accounted for approximately 40 per cent of all dealings in Irish equities on the Irish Stock Exchange in 2009. It was the broker to 9 of the top 10 companies listed on the Irish Stock Exchange. Over the preceding years, Davy had been responsible for circa 70 per cent of funds raised on the Irish Stock Exchange.

According to annual accounts published Davy had retained profits at the end of 2011 of €110.545 million compared with €124.99 million in the previous year.

History

20th century

James and Eugene Davy were raised in Rathmines.

Davy Headquarters at Dawson St, Dublin, Ireland

21st century

In 2006, Davy opened another regional office in Galway.

The same year, Davy opened a dedicated office for Northern Ireland, located in Belfast city centre.

Davy was the only Irish dealer in Irish Government Bonds, when the country returned to the market for the first time since 2010 in January 2012.

In 2012, Davy Research was named Ireland's No.1 brokerage and also the country's No.1 Equity Research Team in the Institutional Investor All-Europe Research Team 2012 Survey.

Davy advised the Irish Government on the sale of the national lottery license, operated by the stated owned An Post.

On 8 March 2012, Davy announced acquired Bloxham Stockbrokers private client business. The following May, Davy announced that it had acquired Bloxham's asset management business. The two acquisitions increased Davy's assets under management by approximately €1.2 billion.

When the Irish Stock Exchange demutualised in April 2014, the broker became its largest shareholder holding 37.5% of the Exchange.

In 2018, Davy along with Bastow Charleton Wealth Management (BCWM) were appointed by the liquidator of Custom House Capital to take over the return and administration of client funds following the collapse of the company following a fraud.

In 2022, Davy was acquired by Bank of Ireland in a €427m deal.

In 2024, Davy sold its property arm to David Goddard, with it rebranding to Lanthorn.

Controversy

Bribery and payments to politicians

The Mahon Tribunal established that Davy, throughout the 1980s and 1990s, made a series of payments to the corrupt politician Liam Lawlor.

In 1992, Davy made a political donation of a £5,000 cheque to Bertie Ahern, which was paid into Fianna Fáil constituency official Tim Collins's account who stated in writing when opening it that the account was for his own use only.

Tax evasion

Davy admitted that its representatives in 1999 devised a Liechtenstein based tax evasion scheme uncovered by the public service broadcaster, RTÉ.

Insider trading scandal

In a 2005 insider dealer case, the chief executive of Fyffes plc whose shares were the subject of the illicit trading said that he was "set up" by Davy. He also told the High Court he believed Davy and the party found responsible by the courts of insider dealing had coordinated to sell the shares they held in his company.

2011 Central Bank of Ireland fine

In December 2011, the Central Bank reprimanded and fined the firm for failing to report 61,542 transactions. Davy described the breaches as "technical".

Contract for Difference (CFD) pushing scandal

A former client of Davy with intellectual disabilities was awarded €2m by the High Court in 2014 after the court found that Davy had caused him substantial investment losses through "deliberate neglect".

Siteserv controversy

In January 2012 the board of Siteserv announced the appointment of Davy Corporate Finance to advise (alongside KMPG) on their strategic and corporate options given the pending maturity of their debt with IBRC. 18 months after the Siteserv deal Des Carville, the Davy adviser on the transaction joined the Department of Finance. In responses to parliamentary questions posed, the Department of Finance said that Carville had declared a potential conflict of interest arising from his involvement with Siteserv before he joined.

2021 bond trading scandal

In March 2021 the Davy Group was fined €4.1m by the Central Bank of Ireland relating to a 2014 bond trading deal in which 16 Davy employees including CEO Brian McKiernan and former Chairman Kyran McLaughlin, were involved in acquiring bonds for a below market value price of €5.58m from a client and not disclosing to the client that it was Davy staff who had bought the bonds. The bonds were later sold on at a profit to a third party fund manager. Following the investigation by the Central Bank of Ireland and the issuing of the fine many of the senior executive team were forced to resign and the business was put up for sale.

See also

References

  1. ↑ "About Davy - About Davy". Archived from the original on 26 October 2007. Retrieved 9 February 2014.
  2. ↑ "Davy Capital Markets". davy.ie.
  3. 1 2 3 "Bank of Ireland completes purchase of Davy". rte.ie. RTÉ News. 1 June 2022. Retrieved 1 June 2022.
  4. ↑ "Summary Financial Statement - 2006" (PDF). davy.ie. Archived from the original (PDF) on 19 November 2007.
  5. ↑ "J & E Davy Holdings Summary Financial Statement" (PDF). Archived from the original (PDF) on 1 February 2014. Retrieved 19 January 2013.
  6. ↑ "Residents of a house 29 in Terenure Road (Rathmines & Rathgar West, Dublin)". National Archives: Census of Ireland 1911. National Archives of Ireland. 1911. Retrieved 25 September 2010.
  7. ↑ "Davy opens new office in Galway - RTÉ News". RTÉ.ie. 26 January 2007. Retrieved 20 January 2014.
  8. ↑ "Davy to open Belfast office". BreakingNews.ie. 20 September 2007. Retrieved 20 January 2014.
  9. ↑ "Newspaper Frontpage". The Irish Times. Archived from the original on 26 January 2012. Retrieved 9 February 2014.
  10. ↑ Briain. "Business World". Businessworld.ie. Archived from the original on 2 February 2014. Retrieved 20 January 2014.
  11. ↑ Barrington, Bernice (13 June 2012). "Davy voted Ireland's leading brokerage in survey - Business - Business - Ireland's online business and management news service". Businessandleadership.com. Retrieved 20 January 2014.
  12. ↑ "Newspaper Frontpage". The Irish Times. Retrieved 9 February 2014.[dead link]
  13. ↑ "Davy buys unit of rival Bloxham - The Irish Times - Fri, Mar 09, 2012". The Irish Times. Archived from the original on 9 March 2012. Retrieved 9 February 2014.
  14. ↑ Corbett, Karina (28 May 2012). "Davy acquires Bloxham's asset management business - Business - Business - Ireland's online business and management news service". Businessandleadership.com. Retrieved 20 January 2014.
  15. ↑ "Davy takes largest stake in restructured exchange". The Irish Times. 14 April 2014. Retrieved 20 February 2015.
  16. ↑ Daly, Linda (14 February 2024). "Harry Cassidy's game is finally up. It's little comfort to those who lost life savings". Retrieved 14 February 2024.
  17. ↑ "Press Release: Acquisition by Bank of Ireland of Davy – Ireland's leading wealth and capital markets provider". bankofireland.com. Bank of Ireland. Retrieved 1 June 2022.
  18. ↑ Sargent, Niall (21 November 2024). "A flair for success: David Goddard makes his first post-Davy move with new Lanthorn venture". The Currency. Retrieved 30 May 2026.
  19. ↑ Connolly Frank, Gilmartin, Page 184, Gill & Macmillan, Dublin 12, 2014, ISBN 978-0-7171-6047-1
  20. ↑ "The Final Report of the Tribunal of Inquiry into Certain Planning Matters and Payments" (PDF). Archived from the original (PDF) on 4 March 2016. Retrieved 27 February 2015. Final report of the Mahon Tribunal
  21. ↑ Connolly, Shaun (22 February 2008). "FG brands Ahern 'tax dodger' after revelation". Irish Examiner. Archived from the original on 31 January 2016. Retrieved 25 September 2010.
  22. ↑ "Davy's made £5,000 donation in 1992". The Irish Times. 22 December 2007. Archived from the original on 25 October 2010. Retrieved 25 September 2010.
  23. ↑ "Comment: Investors told that BoI funds are not the best option". Sunday Business Post. 24 February 2008. Retrieved 25 September 2010.[permanent dead link]
  24. ↑ "Stockbrockers' (sic) managing director confirms meeting Moriarty lawyers". RTÉ News. 21 November 1999. Retrieved 25 September 2010.
  25. ↑ "When a wife turns whistle-blower". Irish Independent. 28 November 1999. Retrieved 25 September 2010.
  26. ↑ Flynn, Gerald (25 November 1999). "Court file led to probe on McLaughlin". Irish Independent. Retrieved 25 September 2010.
  27. ↑ "Fyffes was misled, McCann tells court". RTÉ. 11 January 2005. Retrieved 25 September 2010.
  28. ↑ "High Court Record Number: 2002 1183P". Courts.ie. Retrieved 20 February 2015.
  29. ↑ "Central Bank of Ireland - Settlement Agreement between the Central Bank of Ireland and J & E Davy t/a Davy". centralbank.ie. Archived from the original on 14 April 2012. Retrieved 9 February 2014.
  30. ↑ "Davy is hit with €50,000 fine by the Central Bank - Independent.ie". independent.ie. 4 December 2012. Retrieved 9 February 2014.
  31. ↑ "High Court awards €2m to 'very vulnerable' young man against Davy's Stockbrokers". Irish Independent. Retrieved 9 April 2014.
  32. ↑ "'Very vulnerable' man awarded €2m against Davy". The Irish Times. Archived from the original on 13 April 2014. Retrieved 9 April 2014.
  33. ↑ "Man with intellectual difficulties awarded €2.1m over stockbroker Davy's 'deliberate neglect'". RTÉ. 9 April 2014. Retrieved 9 April 2014.
  34. ↑ "Shocking and distasteful case shows duty of care has little meaning". Irish Independent. 10 April 2014.
  35. ↑ "Siteserv adviser worked on O'Brien's Esat deals". The Irish Times.
  36. ↑ Noonan, Laura (12 March 2021). "Ireland's Davy up for sale after bond scandal drew political backlash". Financial Times. Retrieved 25 March 2021.
  37. ↑ Shortt, Robert (2 March 2021). "Central Bank fines Davy €4.1m for breaking market rules". RTÉ.ie. Retrieved 25 March 2021.
  38. ↑ "No heads asked to roll as Davy fined €4 million and criticised for "lack of candour"". The Currency. 2 March 2021. Retrieved 25 March 2021.