An inspection by the Central Bank of 32 stockbroking and investment firms has raised a number of issues in relation to best execution practices.

Best execution requires firms to take all reasonable steps to get the best possible result for their clients taking account of the price, speed, costs and size of the order.

Firms must ensure that the information provided to clients is of sufficient quality for the client to make a properly informed decision about whether to use the investment services offered by the firm.

The Central Bank inspection identified poor best execution practices among a number of the firms.

Firms’ policies were found to be generic in nature and not specifically tailored to their individual business activities.

Furthermore, in their communications with clients, more than three-quarters of firms did not provide sufficient information regarding their policies.

Bernard Sheridan, director of consumer protection at the Central Bank, said: “Clients must have confidence that investment firms will act in their best interest at all times.”