Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Release of PwC report into Ross Asset Management


News release
15 November 2012

Release of PwC report into Ross Asset Management

The investigation into the affairs of David Ross of Ross Asset Management Ltd and related entities has moved forward today with the release of the receivers’ report.

The investigation commenced on 25 October when the Financial Markets Authority received complaints from investors who had been unable to withdraw funds, several months after requesting them.

Following initial inquiries FMA moved immediately to obtain information from Mr Ross. When he was not able to satisfy serious concerns, FMA executed a search warrant from 31 October – 2 November on the offices and home of David Ross, and on 2 November obtained a freeze of Mr Ross’s assets and assets of entities located in New Zealand. Receivers PwC and brokers First NZ Capital were appointed on FMA’s application on 6 November and required by the Court to submit a report within five working days.

The report, prepared by John Fisk and David Bridgman of PwC, with the assistance of brokers from First NZ Capital, explains that Ross Asset Management’s records show purported investments of $449.6 million, held on behalf of more than 900 investors across 1720 accounts. This figure represents the portfolio values reported by Ross Asset Management to investors, not their actual capital contributions, or the current value of those contributions. The latter figures are yet to be determined.

The receivers and managers’ focus over the first five days of their appointment has been to identify and secure investment assets. After searching the custody accounts identified by Mr Ross and through wider searches in international investment markets, they have so far located investments of only $10.2 million. The search continues.

FMA CEO Sean Hughes said today that while he welcomed the greater clarity the report brings on the affairs of Ross Asset Management, it clearly makes for difficult reading for the 900 plus investors with funds under management.

“The events of the past two weeks demonstrate that FMA will take swift action in response to investor complaints and we would encourage people to come forward if they have concerns about the security of their investment. They should be confident that we will listen and act where appropriate,” Mr Hughes said.

“We understand Mr Ross has been in this business for over a decade. The adviser regime is still relatively new, as are the powers under which FMA operates, but it is heartening to see the speed with which FMA were able to conduct an inquiry, preserve assets and appoint a manager and receiver. Our end goal is the best possible outcome for the investor, although we realise that in this instance it would appear that the remaining assets are limited.”

“New Zealand has nearly 2000 Authorised Financial Advisers, most of whom are behaving professionally, working to comply with the new financial adviser laws and seeking to serve their clients well. We are continuing to work with both advisers and investors to ensure both parties understand what information needs to be made available. For investors in particular it’s about understanding what questions to ask and having the confidence to ask them. They need to understand the nature of their investments and who is holding them, and maintain an appropriately diversified portfolio.”

FMA has been posting regular updates for investors on its website, in addition to email contact with those who had identified themselves to the regulator.

FMA is working with other agencies, including SFO in relation to the serious issues the report identifies.

A copy of PwC’s report can be found at http://www.pwc.co.nz/RossAssetManagement.
Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news