There’s been a lot of talk today over an Irish company called Bloxham, but who are they and what have they done?
So, who exactly are Bloxham and what do they do?
Well, Bloxham is Ireland’s oldest stockbroking firm and they’re one of biggest in Ireland too. They provide asset management services, innovative investment funds, corporate advisory services, and institutional equity and bond services to a wide range of domestic and international clients. Well, that was until last Friday.
What happened on Friday?
After an inquiry into the company, the Central Bank imposed directions on Bloxham on Friday to cease all regulated activities, with immediate effect. So that was a warning for things to come. Today, however, the Central Bank released a statement saying that it has now ordered Bloxham stockbrokers to stop all regulated activities following the discovery of “financial irregularities” at the securities firm. Basically, the Central Bank wants them to stop trading because they found something fishy in their accounts. To trade on the Irish Stock Market a company needs at least €5.8 million of capital, but obviously they didn’t have it.
So what are the “financial irregularities”?
So far it looks as thought the “financial irregularities” relate to overstating income for the past four years. Basically, they said they were taking in more cash for themselves than they actually were. A financial partner of the company has been suspended because of this but that person has yet to be officially identified. Anyone smell a witch-hunt forming?
So what’s going to happen this guy (or gal) now?
According to Bloomberg the inquiry will stretch back to 2007. So if the financial partner has been messing around on purpose since then, he could be in for a world of hurt. However, if it’s all an innocent mistake he might get off easy – but we doubt it. The other partners in the firm knew nothing about the overstating (or so we’re told) and they’ve asked a firm of forensic accountants to verify the position and assist in further investigations.
I see so what’s going to happen to all that money they were investing for people?
It’s been shipped off to another stockbrokers firm called Davy. All the cash that Bloxham was looking after for clients is now safe and sound with Davy. So, if you had money with the company then you’ve nothing to worry about. Your quarterly letters will just come on different headed paper.
Well that’s good news. Is there any other bad news?
Yes. As the company has now ceased trading around 40 people are being carted off to Davy – along with the money – and around 30 other employees could now lose their jobs completely. So it’s not a great day for them.
