Professional services and management consultancy, Alvarez & Marsal, has been appointed by Davy to carry out an independent internal review of its operations, including relevant staff trading, over the past seven years.

It follows the recent fine by the Central Bank of the stockbroker as a result of a number of regulatory breaches in 2014.

Davy said Alvarez & Marsal has wide international experience in forensic and regulatory investigations.

The probe will be conducted by a team based in London and the company has had no known prior connection with Davy.

“The review will include a forensic assessment, the scope of which will be determined by Alvarez & Marsal, of relevant staff trading from 2014 to 2021 and of any other relevant activity,” Davy said in a statement.

“It will also assess the adequacy of enhanced compliance, controls and governance designed to prevent conflicts of interest.”

The statement added that Davy’s board is committed to sharing the findings of the independent review, although it is not yet clear what form that might take.

No timeframe has been set for the completion of the review.

But it is understood that the review team will have quite a degree of scope to take the probe in the direction they see fit.

This means that although the period of review has been set from 2014 onwards, if issues of concern are found that go back further in time it is expected they could be examined also.

Two weeks ago, Davy was fined €14.1m for a number of regulatory breaches related to a 2014 transaction.

It saw a Davy client sell a bond to a consortium, without being told that it was made up of 16 Davy staff.

The controversy led to three senior figures in Davy resigning, as well as the closure of the company’s bond desk after the National Treasury Management Agency withdrew its authority to act as a primary dealer in Irish Government bonds.

Last week Davy’s board said it had decided to pursue a sale of the business.

The internal inquiry is being seen as another necessary step towards restoring trust in the company.