Gensec Ireland to cease operations in early 2004

Gensec Ireland, the Irish investment banking arm of a leading South African insurer, announced yesterday it will cease operations in early 2004.

The closure follows a restructuring plan announced in August by parent company Sanlam Ltd.

The plan called for a shakeup in the firm's non-core investment banking business, with a renewed focus on the large insurer's domestic South African market.

Gensec Ireland's chief executive officer, Mr Paul O'Dwyer, said: "I'm sad because the Irish business was successful and profitable. We have been leaders in the development of sophisticated front office activity at the IFSC since 1998."

A total of 15 jobs will be lost when Gensec Ireland closes. Most of the jobs are high-level positions in investment banking and analysis.

Sanlam's other business activities in Ireland, including its €1.5 billion fund management arm, will not be affected by the restructuring. In global terms, Sanlam employs almost 10,000 staff.

Mr Anton Botha, CEO of Genbel Securities, the Sanlam holding company that oversees Gensec Ireland, said: "Gensec Ireland has been a significant contributor to the \\and we regret that it will not be part of Gensec's restructuring opportunities going forward."

Mr Botha added that the IFSC operation was the first overses venture for the Gensec group.

Since it was first set up five years ago, Gensec Ireland has engaged in a variety of trading activities, including securities trading, underwriting and structured finance, mainly for institutional clients.

It helped establish Ireland's first equity arbitrage trading desk, and set up a trading branch in London.