Fine Gael Enterprise spokesperson Phil Hogan said yesterday that it was essential for the Dáil to scrutinise the regulation of the Irish Stock Exchange if the consumer interests of Irish investors was to be protected.
"The Fyffes/DCC case raised serious issues about the regulatory regime of the stock exchange and I am very concerned, from a consumer point of view, that systems at the exchange should be robust and appropriate," said Mr Hogan.
His remarks came after the chief executive of the stock exchange, Mr Tom Healy rejected allegations of impropriety in relation to the DCC/Fyffes insider-dealing controversy.
"Both the chief executive of the Irish Stock Exchange and the Director of Corporate Enforcement will be called before the Oireachtas Enterprise Committee in order to assess whether self-regulation of the exchange is appropriate and whether legal change is needed," Mr Hogan said.
Mr Healy met with representatives of DCC and advised the company to forward these documents directly to the DPP.
While he questioned the accuracy of some of the memos, he has however refuted any suggestion that he offered to vet the reports in any way that would assist DCC.
In February 2000, DCC sold shares in Fyffes worth €106 million. Subsequently a profit warning was issued by Fyffes which caused the price of the company's shares to fall by 25 per cent, prompting allegations of insider dealing against DCC and its chief executive Jim Flavin. This led to a civil case being initiated by Fyffes. The stock exchange carried out its own inquiry and forwarded a file to the Director of Public Prosecutions who did not bring a criminal case against DCC.
"It is opportune to discuss this issue now in the context of forthcoming EU directives dealing with the regulatory regime appropriate to stock exchange dealing," Mr Hogan said.
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