News from Financial Markets Authority
Further charges have today been laid by the Financial Markets Authority against Wellington financial advisor David Ross, alleging breaches of financial markets legislation.
Mr Ross faces one charge under the Financial Service Providers Act of providing a financial service when he was not registered for that service. The maximum penalty is 12 months’ imprisonment or a $100,000 fine.
He is also charged under the Financial Advisers Act with knowingly making a false or misleading declaration or representation to FMA for the purpose of obtaining authorisation to become an Authorised Financial Adviser (AFA). The maximum penalty is a $100,000 fine.
A third charge under the Financial Markets Authority Act alleges he supplied information or produced documents to FMA which he knew to be false or misleading. The maximum penalty is a $300,000 fine.
Earlier this month five Crimes Act charges were laid by the Serious Fraud Office (SFO) against David Ross following a joint investigation by SFO and FMA.
“Today’s charges allege that David Ross showed a disregard for the financial adviser regime by misleading FMA in his application to become an AFA,” said FMA Head of Enforcement, Belinda Moffat.
“These charges send a strong message that there are serious consequences if false information is provided to FMA for any license, and it reinforces the need for integrity in the system.”
The investigation into Ross Asset Management and related entities commenced in October last year when FMA received complaints from investors who had been unable to withdraw funds. FMA took immediate action to preserve investors’ funds by obtaining asset preservation orders and orders appointing receivers and managers to the Ross Group of entities and a joint investigation was subsequently commenced. The asset preservation orders remain in place.
David Ross will appear at the Wellington High Court on 5 July.