Stockbroker suspended from floor
Published 28/05/2012 | 10:52
A 150-year-old Irish stockbroking firm has been ordered to cease trading and is suspended from the Dublin trading floor for accounting irregularities.
Bloxham was found to have financial errors in its returns going back five years after industry watchdogs raised the alarm last Thursday.
It is believed the stockbroking firm was holding assets in reserve which should have totalled 5.8 million euro, not as reported.
The financial partner, named on the Bloxham website as Tadhg Gunnell, is suspended with immediate effect.
The firm said: "On foot of their initial investigations the remaining partners in the firm, who were unaware of these issues, have asked a firm of forensic accountants to verify the position and assist in further investigations."
Accountants from KPMG have been called in to examine the books while the Central Bank of Ireland, which first raised concerns, has also launched an inquiry.
Bloxham said the impact of the misreporting is that it no longer holds sufficient capital to meet the licensing requirements to trade as a stockbroker.
It insisted no client funds were put at risk.
Mr Gunnell joined the firm in 2000 from Deloitte, where he was an audit and assurance manager, and was made a partner at Bloxham in 2005. He oversaw the finance and compliance division.
The Central Bank ordered a stop on all regulated activities and that all private client and fund management business be transferred to its larger rival on the Dublin trading floors, Davy.