A receiver, Mr Tom Grace of PricewaterhouseCoopers, has been appointed to W & R Morrogh, the Cork stockbroking firm which was ordered to cease trading four days ago after financial irregularities were discovered.

The Central Bank would not comment last night on its decision to ask the High Court apart from issuing a three-line statement announcing Mr Grace's appointment.

Mr Grace is already operating from the Morrogh offices in Cork and his first task will be to carry out a formal audit of the broker's books to find out exactly what the shortfall is from the financial irregularities that the firm's senior partner Mr Alec Morrogh has attributed to its junior partner, Mr Stephen Pearson.

Mr Grace will particularly be trying to find out which Morrogh clients are out of pocket as a result of the irregularities. Since the Central Bank ordered Morrogh to cease trading, it has emerged that the firm sold in excess of £2 million worth of its shares in the London Stock Exchange after it discovered the irregularities.

These are shares that Morrogh got for free when the LSE demutualised last year. It is understood that the sale of these shares was ordered by the firm to make up some of the losses after the financial irregularities were discovered and contrary to some reports the order to sell the shares did not come from the Central Bank.

Despite the proceeds from the sale of the LSE shares, it is understood there is still large financial shortfall at Morrogh, and one source insisted that it is "the best part of £1 million".

Informed sources said the prospects of the receiver finding anybody to buy the firm are remote and the likelihood is that he will ultimately preside over a winding-up of the firm.

It is thought that rival stockbroking firms such as Davy and Goodbody, who would have an eye on the Morrogh business, will simply sit on the sidelines - rather than buy the firm they will probably hire some of the Morrogh staff who would be expected to bring some of their clients with them.