No silver bullet to regulation: Hughes

Parliament sets the rules that market participants are expected to operate under. The Financial Markets Authority regulates that conduct through our regulatory and enforcement activity, and by increasing levels of compliance of market participants. 

Along with other public bodies, as well as financial advisers and firms such as banks and brokers, it is also our job to equip investors with resources that help them make more informed decisions. Investors have a role to play, too, and are ultimately responsible for the investment decisions they make.

I have the upmost sympathy for investors who trusted David Ross with their money, and I take full responsibility for the fact that FMA licensed David Ross in 2011 under the then new financial adviser licensing regime.

The investigation into David Ross revealed that he lied to FMA in his application to become an Authorised Financial Adviser (AFA), he provided a financial service that he was not registered for, and he provided FMA with false or misleading information.