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ISE gives Davy public censure
The Irish Stock Exchange (ISE) has handed down a public censure to Davy over breaches of its rules in relation to the sale of perpetual bonds to credit union clients.
The censure is understood to be the first such public statement issued by the ISE in relation to an investigation into the activities of a member firm. Davy, one of the oldest and most prestigious brokers in the Irish market, is an ISE shareholder and is represented on its board.
The breaches set out by the ISE, in a statement published on its website, relate to the completeness of Davy’s disclosure to credit unions of “certain information” concerning the bonds.
The breaches also relate to the provision of written evidence to demonstrate that Davy had taken due care to ensure that the relevant credit unions understood all characteristics of the bonds. Davy also breached rules related to the necessity to take all reasonable steps to ensure the bonds were in full compliance with Trustee (Authorised Investment) Order of 1998.
In a deal last year, Davy agreed to spend €35 million on a new investment product aimed at covering losses incurred by more than 140 credit unions on their investments in perpetual bonds.
The ISE censure follows a ruling against Davy last year by Financial Services Ombudsman Joe Meade in light of a complaint by Enfield credit union. Davy appealed that ruling to the High Court, which quashed Mr Meade’s decision. Mr Meade appealed the High Court ruling to the Supreme Court, which will hear the case next month.
Tullow chief Heavey earns 1.6m
Tullow Oil chief executive Aidan Heavey earned €1.6 million in pay and benefits last year, compared to €1.3 million in 2007, according to the company’s annual report.
Of the total, his salary and fees came to €640,500, bonuses and shares topped €860,000 and the company contributed €96,000 to his pension.
Fellow executive Graham Martin’s pay came to €908,000 in 2008, compared with €710,000 the previous year.
Angus McCoss earned €890,000 last year, up from €674,000 in 2007. Paul McDade also made €890,000 from €645,000.
Dragon Oil extends Iran Khazar contract
Irish oil and exploration company Dragon Oil announced yesterday that it has extended a contract for the Iran Khazar rig for a further two years, which will ensure that its drilling programme remains on track.
