Companies barred by court from acting as financial advisers

Two Dublin companies have been told by the High Court they must not act as financial investment firms or hold themselves out to be such.

Mr Justice Peter Kelly yesterday confirmed directions, given by the Central Bank, to James Bowen Investment Consultants Ltd and James Bowen and Associates Ltd precluding them from acting as financial advisers until further order of the court.

He also directed that, as a result of Central Bank concern over misleading newspaper articles relating to the matter, advertisements be taken out in The Irish Times, Irish Independent and the Examiner informing members of the public of the terms of the court orders.

Mr David Barniville, counsel for the Central Bank, said that under the 1995 Investment Intermediaries Act the Central Bank was the supervisory authority over investment business firms.

The High Court had earlier, for a number of reasons including failure to have a bond in place and for the furnishing of misleading information to the bank, revoked authorisation permitting James Bowen Investment Consultants Ltd., Fitzwilliam Place, Dublin, to act as an investment consultancy firm.

Mr Barniville said that in June last the bank appointed authorised officers to carry out certain investigations and they had obtained evidence which appeared to indicate that unauthorised investment activities were being carried on by one or both companies. He said James Bowen and Associates Ltd had not, at any stage, been an authorised financial consultancy company.

He said both companies had consented to the court making an interlocutory order restraining them from acting as financial consultants until October 12th next or further order of the court and had agreed to pay the Central Bank's legal costs. Mr Justice Kelly said concern had been expressed by the bank in its written evidence to the court about newspaper articles quoting Mr Bowen on the regulatory status of the companies and their alleged entitlement to carry on particular forms of business.

Given that the court's orders had been made for the protection of the public, he directed they be advertised by the bank, at the expense of the two companies concerned, in The Irish Times, the Irish Independent and the Examiner.

The bank had referred to its concern about newspaper articles, which had appeared to be misleading regarding the reasons for the revocation of the authorisation to James Bowen Investment Consultants Ltd and the type of business both companies could transact without Central Bank authorisation.