Six senior staff at major IFSC company resign

The six most senior staff in one of the Republic's largest IFSC companies have resigned after a disagreement about the firm's future.

Five of the team of senior managers resigned from PFPC International last month and then ceased working in the Dublin-based company last week. They are on "gardening leave", which allows them to work out their notice period at home. The sixth executive resigned more recently.

The executives are expected to set up a new funds operation in Dublin. Among the five resigning in December was Joan Kehoe, PFPC International president. She was joined by Linda Gorman, chief operating officer, Charles Gillanders, head of IT, Garrett Breen, the senior director responsible for hedge fund accounting, and financial controller Paul Feely.

Ms Kehoe had been with the company for 13 years and had overseen its growth from two staff to 850 staff in offices in Dublin, Luxembourg, Wexford and the US. It is thought the six departing executives had wanted to expand PFPC's presence in hedge fund administration, but that the company's US parent, PFPC Inc, did not share their enthusiasm.

The matter came to a head amid talk of possible deeper links with PFPC affiliate, Blackrock, which is heavily involved in hedge funds.

The management team is said to have been in favour of such a move, but PFPC in the US is believed to have opposed it.

While the six executives are now unlikely to pursue any links with Blackrock, it is expected that they will establish a new funds business in Dublin with the help of another financial backer.

Hedge funds are likely to be the focus of any new business.

A spokeswoman for PFPC in Delaware yesterday said the firm would appoint an executive team in Dublin "in the very near future". She also said the company still has "many long-term employees".

While declining to comment on any disagreement regarding the Irish business, the spokeswoman said PFPC remains committed to its international business and its alternative investment activities. In the near term, the operations in the Republic, which employ 545 people, are being overseen by Stephen Wynne, PFPC's overall president.

PFPC was one of the first IFSC companies to expand outside Dublin. It established a funds administration business in Wexford in 2002. Less than a year ago, the firm announced further expansion into Meath and Wexford, which should bring PFPC's Irish workforce to about 1,000.