Irish Stockbroker May Soon Reopen To Private Investors

by Lisa Ugur, Tax-news.com, London

19 April 2001

Irish private investors may soon be able to use Dublin-based stockbroker Fexco once again, following news that the Central Bank is considering allowing the company to re-open for new private clients. Fexco Stockbrokers Ltd, part of the Fexco international financial services group which has its corporate headquarters in Killorglin in Co Kerry, was prohibited from taking on new private clients in early 2000.

Fexco - like a number of other stockbroking firms - was restricted from taking on new customers, in its case because of problems with the handling and settlement of transactions, compounded by the fact that there was a huge increase in demand for stocks and shares from new private clients, who swamped the share trading arena about 18 months ago. Since the restriction was placed on the company by the Central Bank, Fexco has only been able to deal with private clients who were already active traders at the time of the embargo.

The Irish independent reported this week that Fexco, whilst unable to take on new investors, has been upgrading its technology in order to attract investors when its ban is lifted. This will hopefully be in the near future, given both the technological improvements and the fact that trading has seen a downturn as a direct response of the worldwide fall in share prices, thus relieving the pressure that brokers were under a year or so ago.

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