IRISH Stock Exchange chief executive Tom Healy is to be called before the Oireachtas Committee on Enterprise and Small Business to defend the role played by the exchange in the recent Fyffes/DCC insider trading case.
Director of corporate enforcement Paul Appleby is also to be called before the committee to present his view on whether self-regulation of the exchange is appropriate in light of revelations about practice that emerged during last year's court case.
Committee convenor Phil Hogan, Fine Gael spokesman for enterprise, trade and employment, said the case raised issues about the exchange's regulatory function that need to be teased out.
"We are very concerned, from a consumer point of view, that everything is as it should be in the stock exchange, " he said.
Confidential internal DCC memos disclosed during the court case raised questions over the flow of information between the stock exchange and DCC. Healy last week refuted the suggestion in the memos that he had offered to "vet" expert reports prepared for DCC before they were given to the stock exchange and forwarded to the Director of Public Prosecutions (DPP), which was carrying out its own insider trading inquiry.
Evidence presented in the Fyffes/DCC civil case, included taped conversations between stock exchange deputy chairman Brian Davy and DCC chief executive Jim Flavin, which took place before DCC handed over the expert reports, in which Davy discussed his conversations with Healy about them.
In last week's statement, the exchange rejected suggestions that Healy acted inappropriately in studying the reports before they were handed over by DCC. In an extensive statement, the exchange underlined its close cooperation with the DPP's office, acknowledged in Supreme Court judgments last year by both Judges McCracken and Fennelly.
Hogan said the committee will be calling the director of corporate enforcement to assess whether legal change is needed. He said the case had implications both for the role and responsibility of company directors, and for stock exchange regulation.
"Billions of euro are being invested in the stock exchange and we want to make sure the regulatory regime is appropriate and robust, " Hogan said. "It is critical that Irish investors can continue to have confidence in the regulatory function operated by the stock exchange and that the interests of these investors continue to take precedence."
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