THE Irish Brokers Association (IBA) has issued a statement outlining the sequence of events in relation to its involvement with the Taylor controversy.
The association at one stage, when asked to divulge information to the Department of Enterprise and Employment, sought an indemnity from the Department. It had received a letter from solicitors acting for Mr Tony Taylor informing the association that a complainant was being sued for defamation.
It had also received a request from the complainant that the confidentiality of the complaint should be upheld.
In its statement the association expressed its regret that the complainants had not come forward earlier and did not take the IBA's advice to appraise the Department of Enterprise and Employment of their difficulties.
The first complaint "indicating that something was amiss with Taylor's" was received on July 18th, according to the statement. However, Mr Pat Rabbitte, the Minister for Commerce Science band Technology, following a two hour meeting with the IBA yesterday, pointed out that the IBA had been made aware there might be difficulties in late May. On Monday July 22nd, Mr Tony Taylor was sent a letter by hand from the IBA. His solicitors responded the same day claiming the letter was defamatory and they were issuing proceedings against the complainant.
A fax was received by the IBA from Fidelity Investments advising that Fidelity had terminated all agreements with Taylor Asset Managers (TAM), with effect from the previous Friday.
"It subsequently appears that Fidelity Investments had resolved to terminate its arrangements with TAM in June," according to the statement. "The IBA was never advised of this."
Also on July 22nd, the association met with officials from the Department of Enterprise and Employment and details of the complaint were discussed.
On Friday July 26th, a second complaint was received, regarding Mr Taylor and TAM. Mr Taylor was again written to.
On Sunday July 28th, IBA received a detailed briefing from its legal advisers. "The nub of the advice" was that because of the threat of defamation proceedings from Mr Taylor's solicitors, and because of "other legal constraints", the IBA should advise the complainants to "convey their complaints to the Minister as the supervisory authority as he has far more extensive powers than IBA".
Sources close to the investors who complained say that they argued that the IBA was the main regulator and should act. The sources say they were told that "the IBA procedure was to write to a broker against whom there was a complaint and if necessary to call the broker before a council meeting.
On July 30th, IBA wrote to Mr Taylor "imposing a deadline" of four days. The association wrote to Mr Taylor's solicitors stating that the matter of defamation was between the Taylor Group and the complainants, and could not impinge on the IBA's statutory obligations to secure compliance with the Investment Intermediaries Act, 1995.
On the same date, the complainants were advised to contact the Minister.
The following day, IBA received a request by telephone from the Department requesting copies of the complaints it had received. "IBA responded by offering to forward the documents requested provided the Department would indemnify IBA from any liability for so doing, and that the request was put in writing."
On August 1st Mr Taylor's solicitors told IBA that the first complainant had instituted proceedings against the Taylor Group in the High Court, and that as the matter was now sub judice IBA should postpone further enquiries.
On the next day, August 2nd, IBA received a letter from the first complainant requesting confirmation that the complaint would remain confidential and would not be copied without written permission.
On Tuesday, August 6th, the association wrote to both complainants outlining the regulatory position.
On Wednesday, IBA received a request in writing from the Department seeking access to "all records relating to membership of the IBA by the Taylor Group. This letter specifically stated excluding specific correspondence relating to the recent complaint made against Taylor's", according to the association.
The association faxed the Department stating that full access would be provided.
On Thursday, August 8th, IBA was telephoned from the Department and advised that two authorised officers would visit IBA that afternoon for the purpose of examining the complaint files regarding Taylor Asset Managers. "The IBA stated it was immediately available and provided full access to its files."
"The IBA, while continuing its own investigation, is co operating fully with the Department in its investigation. The IBA also contacted the provisional liquidator appointed by the High Court on the day of his appointment offering any assistance he may require."
