David Ross to 'cooperate fully'

Ross Asset Management's David Ross to 'cooperate fully' with receiver, SFO and FMA probes into his company

22nd Nov 12, 12:14pm by Gareth Vaughan

David Ross, whose in-receivership company Ross Asset Management is being investigated by both the Serious Fraud Office and Financial Markets Authority, has released a statement saying he will cooperate fully with the investigations.

Issued by his lawyers Chapman Tripp, the statement says Ross was released from hospital late yesterday and has been receiving compulsory treatment under the Mental Health Act for three weeks.

"Through his lawyers, Mr Ross has now undertaken to cooperate fully with the Financial Markets Authority, the receivers (PwC), and the Serious Fraud Office. While these matters are the subject of official inquiries, Mr Ross and his family will be making no further comment," the statement says.

Earlier this month PwC released a damning report on Ross Asset Management saying it could only locate NZ$10.2 million of a purported almost NZ$450 million held on behalf of 900-odd investors, and suggested the business may have been operating as a Ponzi scheme.

See the full statement below:

Ross Asset Management founder and director David Ross will cooperate fully with all inquiries into his company and the funds invested with it.

Mr Ross was released from hospital late yesterday. He has been receiving compulsory treatment under the Mental Health Act in hospital for the past three weeks. During this time he has been unable to assist authorities.

Through his lawyers, Mr Ross has now undertaken to cooperate fully with the Financial Markets Authority (FMA), the receivers, and the Serious Fraud Office (SFO).

While these matters are the subject of official inquiries, Mr Ross and his family will be making no further comment.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

7 Comments

by Stephen Hulme | 22nd Nov 12, 12:33pm 1353540830

Issued by his lawyers Chapman Tripp, the statement says Ross was released from hospital late yesterday and has been receiving compulsory treatment under the Mental Health Act for three weeks.

Fantastic stuff - Ross probably cannot be held accountable for himself from here on in. Are lapses back into a compulsory treatment status assured if the questions get too tough?

by Chairman Moa | 22nd Nov 12, 1:23pm 1353543780

We desperately need a wet bus ticket...

by andyh | 22nd Nov 12, 1:50pm 1353545412

Yes indeed - all that is needed now is that the New Zealand judiciary fulfill their part of the bargain; the relevant preparatory work has been done to a suitably high standard it would appear.

by redcows1 | 22nd Nov 12, 1:59pm 1353545966

http://mrjohnclarke.bandcamp.com/track/cant-recall-alan-bond

Seemed appropriate.

by iconoclast | 22nd Nov 12, 3:11pm 1353550294

Dealing with an Authorised Financial Advisor

(a) Fee-For-Service and advice is executed by yourself in your own name

Payment for the service should be paid directly to the advisor's account

(b) Fee-For-Service and advisor executes on your behalf, but in your name

Payment for the service will be paid directly to the advisor and all trailing commissions should rebated back to you

Ensure the investments are held in your name.

(c) Commission Agent - Dealer Network - executes on your behalf

No fees should be paid directly to the Advisor for the advice. His remuneration is obtained via trailing commissions and kick-backs on brokerage.

Capital Payments made to the Advisor in respect of your planned investments should be to the "Advisors Trust Account"

Ensure the investments are held in your name.

(d) Advisor acting as a Fund Manager, managing your investments

The advisor will usually be receiving kick backs on brokerage and trailing commissions and an agreed share of any gains made.

All Capital payments made to the Advisor should be to the "Advisors Trust Account"

If the advisor is operating on an agreed performance basis he should render a periodic invoice, you approve it and he takes it out of your trust account.

Investments will (usually) NOT be in held in your name.

You should receive regular portfolio statements and trust account statements.

by Curious | 22nd Nov 12, 5:36pm 1353559002

In my view AFA's generally should have no need of a trust account. If a discretionary management service is being offered the assets should be held by an independent custodian such as a wrap account. Any basis where the assets are held direct by the client cheques should be made out to the product provider or in the case of shares and bonds to a brokers trust account.

by Chairman Moa | 22nd Nov 12, 5:40pm 1353559259

Forget about the AFA, CA, ABC, DEF.. I will ask uncle Tony to look after my money.. If he stuffed it up, at least I can deal with him directly