Stockbroker Davy has said none of the individuals involved in a 2014 transaction that led to a €4.1 million fine from the Central Bank are working at the firm any longer.

It follows a decision by the company to close its bond desk with immediate effect, resulting in four redundancies.

In a statement the firm said the decision follows a Central Bank investigation of a 2014 bond transaction and the decision by the National Treasury Management Agency to withdraw Davy's authority to act as a primary dealer for Irish Government bonds.

On Saturday, three senior figures at the stockbroker, including its chief executive and deputy chairman, resigned after the firm was hit with the €4.1m fine for breaches in regulations during a 2014 bond transaction.

Earlier today the NTMA said its board had reached its decision on Davy based on its "assessment of the very serious findings" relating to the firm that were made by the Central Bank last week.

In a statement the NTMA said the decision came after engagement with investors in Irish Government debt over recent days.

"A primary concern for the NTMA is to maintain the reputation of Ireland as a sovereign issuer in the bond market and the orderly functioning of the market for Irish Government debt," it said.

"In this context, the NTMA believes that the behaviour described in the Central Bank findings falls substantially short of the standards expected from market counterparties, peers and colleagues in the bond market and is potentially damaging to Ireland’s reputation as a sovereign issuer."

It comes as the NTMA said it plans to raise €1-1.5 billion of debt on Thursday through the sale of 10 and 29-year Treasury bonds.

Minister for Finance Paschal Donohoe said he supports the decision by the board of the NTMA to withdraw Davy's authority to act as a primary dealer in Irish Government bonds.

In a statement, Minister Donohoe said the decision means that Davy Stockbrokers are no longer part of the primary dealer network for the sale of Government bonds.

"This is the appropriate decision given the recent very serious findings of the Central Bank," he added.

The Minister of State at the Department of Finance, Seán Fleming, described the NTMA's decision as a "common sense decision".

"It is clear it would have been damaging for the reputation of Ireland to go into a bond sale this coming week, having had one of our main primary dealers being involved in such a scandal, " Minister Fleming said on RTÉ's Drivetime.

He added that the Government gave no direction to the NTMA on the matter.

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Sinn Féin's finance spokesperson Pearse Doherty has said the NTMA was left with no option but to cut all ties with Davy given the significance of the abuse that took place in the company and the severe findings of the Central Bank.

Speaking on RTÉ's Six One News he said he was disappointed that the Government had not asked for links to be cut with the company.

He said this is a significant issue and the message must go out that this sort of conduct will not be tolerated and that reputational protection will not be provided for companies that engage in this sort of activity.

Mr Doherty said that the question will now emerge in relation to the roles of Permentant TSB or the Bank of Ireland, companies in which the State has a significant shareholdings. 

The new interim chief executive of Davy, Bernard Byrne, addressed staff at the company this morning.

It is understood that in his address, Mr Byrne acknowledged that the board of Davy understands that there were failings and that he committed to act with urgency and do the right things, subject to due process being observed.

Sources indicated there was a tone of humility to what Mr Byrne said and a recognition that Davy had "got it wrong".

It is understood that the address was well received by Davy staff and that it struck an appropriate tone.