[Weekly Wrap] Ross still making headlines

It's not a name a lot of the people working in the financial sector want to hear mentioned in the news, but David Ross has been making headlines again this week.

Friday, September 27th 2013, 2:37PM

by Susan Edmunds

The fallout of the collapse of Ross Asset Management has now also taken out former authorised financial adviser Rodney Bourke-Shaw.

Bourke-Shaw's case came before the Financial Advisers Disciplinary Committee after two investors complained to the FMA.

The Christchurch adviser had concerns about RAM before it collapsed, but the FADC ruled that he did not do all he should have to warn his clients. His record-keeping was also remiss and investors' risk appetite was not taken into account.

He was fined and gave up his AFA registration.

Earlier in the week, a report from the liquidators of RAM seemed to deal a blow to investors - they said they wouldn't automatically be able to clawback money that was distributed unlawfully.

They said it would depend on a range of factors including the relationship of the parties, the knowledge of the recipient of the property and what the recipient did with it.

It's not great news for advisers who would rather see some more positive reports about financial advisers in the mainstream media.

It's probably also not surprising, then, that the former general manager of the PAA said the public was struggling to access advice because advisers were too scared of breaking the rules. Jenny Campbell said it had become harder to get advice under the new regulatory regime, not easier, as authorities had hoped.

David Kneebone, of Sorted, said something needed to be done to encourage people to access a wider range of sources for financial information - he said advisers should act as coaches to get people to put their financial knowledge into practice.

There's been lots of action on the mortgage front, with ASB pulling its preapprovals. The Bankers Association today said that low-deposit borrowers should get in touch with their banks before the loan-to-value speed limits kick in next week.

The Reserve Bank has admitted it's learning by doing, and isn't sure how the restrictions will pan out.

In insurance, PwC said it was likely we haven't seen the end of merger and acquisition activity in the market, and AIA is taking a new approach.

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