Bank lifts Fexco restriction

Fexco Stockbrokers is now free to take on new clients following the lifting of a restriction that had been placed on the firm by the Central Bank.

The Bank, which regulates stockbrokers, confirmed that its direction to Fexco not to take on new customers or to advertise its services has been lifted. The direction was issued on January 28th, 2000.

Mr Denis Crowley, Fexco's director of sales and marketing, said he was "very pleased" with the Central Bank decision. He said Fexco had resolved the difficulties that led to the restriction and was now looking forward to taking on new business "in the very near future".

At a meeting with Central Bank officials in recent weeks, Fexco detailed changes and improvements in its back-office operation and systems designed to ensure the firm was in full compliance with Bank regulations.

The Central Bank direction was issued over concern that the brokers' back office and compliance systems could not cope with the dramatic increase in business that Fexco had taken on due to consumer interest in shares. The back office is involved in the administration and settlement of share deals.

In January 2000, the Central Bank wrote to Fexco telling it not to advertise, promote its services or market itself until its systems and staff numbers were upgraded to handle the volume of business it had taken on.

Fexco Stockbrokers is part of the Fexco financial services group set up in Killorglin, Co Kerry by Mr Brian McCarthy. Since opening in 1996, the firm has taken on 23,000 clients.