NBR 20 Dec 2012 – FMA conflict of interest allegations misconceived and flawed

This appeared in the NBR in response to a complaint by the RAM investors group to the Solicitor General

FMA conflict of interest allegations misconceived and flawed

Article by Blair Cunningham  http://www.nbr.co.nz/subscribe?return=134177

The Financial Markets Authority (FMA) says it has fulfilled its statutory obligations amidst a conflict of interest complaint.

Ross Asset Management investors’ group has complained to the solicitor-general’s office of a perceived conflict of interest.

“FMA is not simply an investigatory and enforcement agency, but also has a statutory mandate to authorise and license market participants. It is inevitable the FMA will at times investigate and bring proceedings against entities it has previously licensed,” spokesman Tony Reid told NBR ONLINE in a written statement.

Investors’ group spokesman Bruce Tichbon says he got a “strong sentiment” from members of the group he should seek clarification of whether or not the FMA has a conflict of interest concerning RAM and related investigations.

He cited four major concerns:

• David Ross was licensed by the FMA as an Authorised Financial Adviser and David Ross had issued a disclosure statement to clients in mid-2011 stating this. The action of the FMA and this disclosure was instrumental in assuring many investors RAM was legitimate and had a more reasonable risk profile.The FMA was charged with doing due diligence on Authorised

• Financial Adviser’s, but had not investigated RAM.
• The government had passed major pieces of financial legislations since the finance company crashes of about 2008, including the Financial Advisers Act 2008 and the Financial Markets Act 2011. These actions created the impression of reasonable regulatory supervision and oversight of the financial markets, but this was not in fact the case, as evidenced by the collapse of RAM.
• The Securities Commission (the precursor to the FMA) was warned there was cause for concern about RAM three years ago in 2009, yet no action was taken.

Mr Tichbon has been referred to the Ministry of Business, Innovation and Employment and is currently considering his next steps.

“The FMA may now have a conflict of interest, in that it has failed to act on previous warnings but is now engaged in the investigation, receivership, liquidation of RAM and potential action against Authorised Financial Advisers who were involved,” Mr Tichbon says.

But Mr Reid says the FMA has applied the law “consistent with our mandate and discretion.”

Blair Cunningham – Wellington reporter

Group Discussion #1: What expectations do you have for the Support Group ?

This discussion is an opportunity to have your say in how the Group should focus it’s activities. And also identify any resources, skills, or ides that may be useful in achieving a more beneficial outcome to this sorry affair.

So it’s over to you … please add your comments by clicking on the link Leave a Reply below.

NOTE: These comments are private to Group Members only.

 

Ross Asset Management in Mauritius and Bermuda

via the Tipline … it seems there are Ross Asset Management companies set up in Mauritius (2011) and Bermuda (1999).

Details below.


Ross Asset Management Limited (Mauritius)

Company Number
C101529
Status
Live
Incorporation Date
22 March 2011 (over 1 year ago)
Company Type
LIMITED BY SHARES
Jurisdiction
Mauritius
Registered Address
Registry Page
https://mns-portal.intnet.mu/cbris-na…

ROSS ASSET MANAGEMENT LTD ( Bermuda ).

Company Number
26226
Incorporation Date
24 March 1999 (over 13 years ago)
Jurisdiction
Bermuda

Welcome

Featured

Welcome to our Support Pages for those affected by the collapse of the Ross Group of companies.  We are also extending our support to the tens of thousands of other NZ investors who have been robbed of billions of dollars over the past few years, of which very little has ever been recovered.

RAM investors please register with us so we can keep you informed with what is happening, and to allow us to provide you with information that may help in dealing with the situation. To register please email me at the address below.

If you have any relevant information to share, then please contact us.

Bruce Tichbon Email bruce@rosssupport.co.nz

SFO confirms investigation into Ross Asset Management

The Serious Fraud Office (SFO) today confirmed that it has commenced a formal investigation into David Ross, Ross Asset Management Limited (In Receivership) and associated entities.

In response to investor complaints, the Financial Markets Authority (FMA) opened an investigation into Wellington Financial Advisor, David Ross and firm Ross Asset Management on 25 October. A freeze was obtained on Mr Ross’ assets and John Fisk and David Bridgman from PricewaterhouseCoopers, were appointed as receivers and managers.

Read the Website …