Senior staff at the centre of the Davy probe will not face criminal sanctions after the Central Bank said that no criminal law was broken.
Derville Rowland, the director of financial conduct at the Central Bank of Ireland, said the enforcement team that investigated the stockbroker did not believe there were criminal reports to pass on to other agencies.
Ms Rowland told the Oireachtas Finance Committee that the full details of the investigation were out in the public.
She added that the Central Bank was “very satisfied” to engage with other agencies.
The regulator fined the stockbroker €4.1 million for breaches of financial market rules.
The Central Bank found that Davy breached six regulations, all of which were classed as regulatory obligations and not criminal offences.
Ms Rowland said that a number of staff involved in the incident were no longer working for Davy.
“We are engaged in very dynamic and significant regulatory engagement with Davy and it is a very evolving situation,” Ms Rowland added.
“I can’t be drawn and commenting on future regulatory actions against individuals.
“We hard fought this enforcement outcome with this firm and the outcome has caused Davy a moment of reckoning and it causes them to have questions to answer with respect to their conduct and culture.
“It’s right that the Central Bank keeps all of its options open.
“During the course of this investigation we did not form views that there were criminal reports to be made to other agencies.
Minimise the transaction
“Now that the full details of the investigation, and the facts upon which they are based, are out in the public domain we are very satisfied to engage with other agencies who may see relevant role in them.
“We have already had tentative engagements with some and we will make sure there is a very fulsome engagement in the near term.”
She also accused Davy of seeking to “minimise the transaction” and “mischaracterise the seriousness of the event” when details of the 2014 incident emerged.
The committee was told that after a forensic investigation, the Central Bank discovered that the initial characterisation of what happened “lacked candour”.
Fianna Fail’s Jim O’Callaghan asked what information was wilfully withheld, but Ms Rowland said that she was “confined” to the details published last week.
She said she could not go further than what was published by the regulator last week.
“It was our view that the information provided mischaracterised the gravity and seriousness of the matter,” she added.
