IRISH STOCKBROKER JE Davy has been fined €50,000 by the Central Bank for failing to report certain trading activities between November 2007 and March 2011.

The settlement relates to breaches of regulation 112 of the European Communities (Markets in Financial Instruments) Regulations 2007. Davy is the second Irish broker to be penalised for breaching these regulations – NCB was previously fined €100,000.

The Central Bank said yesterday Davy had failed to report 61,542 transactions in financial instruments that were admitted to trading on a regulated market, or a multilateral trading facility run by a market operator, by close of business on the day following the execution of the transaction.

It also did not report the correct counterparty in 20,806 transactions in financial instruments admitted to trading on a regulated market.

In addition, Davy failed to “establish adequate policies and procedures sufficient to ensure compliance” with the regulations.

The Central Bank said the failure to comply with the reporting obligations was evidence that Davy’s policies and procedures were not adequate to ensure full compliance with regulation 112.

The breaches were unintended and once detected the firm submitted all transaction reports correctly, the regulator added.

In a statement, Davy said: “These were wholly technical reporting issues with no client impact, which were identified by Davy and voluntarily reported to the Central Bank.”

Peter Oakes, the Central Bank’s director of enforcement said: “Where data does not meet the standards required, this jeopardises an important regulatory function of the Central Bank. We will address these types of failures, and other reporting failures, with firms including, where appropriate, by taking enforcement action.”