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Probe follows Bloxham closure

Ireland's stockbrokers will be subject to a high-profile probe following the dramatic shut down of Bloxham.

It's emerged today that the entire stockbroking sector will be scrutinised over the coming months to ensure that similar 'irregularities' are not present in other firms' books.

Central Bank investigators shut down Bloxham after finding that it was misrepresenting its true financial condition.

It's understood the company portrayed to the Central Bank that it had more money than it actually did.

This resulted in hundreds of millions of euro being put at risk by Bloxham.

Some 50 positions are now in jeopardy with client funds being transferred to fellow broker Davy's.

It's understood that the special Central Bank investigation will now attempt to determine whether the 'irregularities' uncovered at the company were the fault of a single person or or several executives.

There are also serious questions about the role of company auditors Deloitte.

Finance minister Michael Noonan said client funds did not appear at risk.

But, he said: "there are other considerations which make it essential for the Central Bank to prevent Bloxham from trading further".

Bloxham itself revealed that firm's financial partner has been suspended but did not identify him.


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