FMA investigating asset management firm

The High Court has frozen the assets of Wellington-based investment management firm Ross Asset Management after an application by the Financial Markets Authority.

Monday, November 5th 2012, 9:39AM 4 Comments

by Niko Kloeten

The freezing order was made on Friday, five days after the FMA began investigating the firm, which is directed by Authorised Financial Adviser David Ross.

The order also covers related entities Bevis Marks Corporation, Dagger Nominees; Mercury Asset Management, Ross Investment Management, Ross Unit Trusts Management, United Asset Management, McIntosh Asset Management, Chapman Ross Trust and Woburn Ross Trust.

FMA's application for a manager to be appointed to the businesses of Ross Asset Management has been adjourned until tomorrow.

The FMA said it is making inquiries into the affairs of Ross and is actively engaging with a number of related parties, but is unable to comment any further at this stage. It has called for concerned investors to contact it.

The company’s offices in the Morrison Kent building on The Terrace in Wellington have reportedly been raided by the FMA, although the FMA hasn’t confirmed this.

The Serious Fraud Office has confirmed it has also received complaints from investors but it hasn’t said whether it will be investigating the firm.

Ross Asset Management was established in 1989 and conflicting media reports have estimated its assets at between $70 million and $300 million.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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Comments from our readers

On 6 November 2012 at 1:28 pm Alison said:

Was there a trustee company over-looking the affairs of Ross Asset Management ? If not; why not - that will be a question the FMA has to answer for. I hope they weren't asleep at the wheel or spending time watching whether AFAs were dotting I's and crossing T's while a scam was being operated right under their noses..

On 6 November 2012 at 2:26 pm Rick Petters said:

Apparently Mr Ross kept the composition of Investors' porfolios SECRET, never advvertised, No Website and didn't publish his Fund Results. Was there any regulatory supervision over Mr Ross and his Funds Management activities ?

On 6 November 2012 at 4:58 pm Forthright said:

If the investors in Ross haven’t lost any money yet, they are about to lose a substantial amount after the receivers and managers get paid.

On 6 November 2012 at 9:47 pm w k said:

@forthright: That's what I call "major on the minor, and minor on the major", besides, they have to do something, otherwise, will be accused of sleeping.

Had the bad experience of losing money in a company because receivers were called in, otherwise, I would have been paid. From my understanding, the receiver nothing much, and I wrote to him, never got a reply.

Isn't there some regulation or fee guideline for receivers since there has been so much hype about how much advisors and fund managers are paid? Aren't they also considered in the financial industry, and their fees seems to be limited to the sky?

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