DUBLIN, July 22 (Reuters) – Ireland’s Davy Stockbrokers has sold its fund management and servicing unit to IQ-EQ, the Luxembourg-headquartered investor services group said on Thursday, part of the sale of the entire business following a record central bank fine.

An inquiry into 16 staff members at Ireland’s largest stockbroker found they sought to profit in 2014 by taking the opposite side of a bond deal with a client, without telling the client or compliance officials.

Davy was fined 4.1 million euros ($4.84 million) in March and was dropped as a primary dealer in Irish government bonds, leading to the closure of its bond desk. It subsequently put itself up for sale.

The inquiry’s findings caused public outcry in Ireland where the actions of some bankers during the financial crisis a decade ago are still raw.

IQ-EQ, which launched a dedicated funds business in Ireland earlier this year, did not disclose any financial details of the deal.

It said Davy Global Fund Management, which employs 83 mainly Irish-based staff servicing domestic and international clients, will rebrand to IQ-EQ following completion of the transaction, which is expected by the end of 2021.

Local media have said Bank of Ireland, the country’s largest bank by assets, are favourites to buy the remainder of Davy’s business.

Davy is also Ireland’s largest wealth manager, with around 8.5 billion euros of assets under management, and is a corporate broker for some of the largest firms listed on the Irish stock exchange. ($1 = 0.8477 euros) (Reporting by Padraic Halpin Editing by Joe Bavier)

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