preview

David Robert Gilmour Ross Financial Advisor For Over 20 Years

Decent Essays

David Robert Gilmour Ross had been a financial advisor for over 20 years. He conducted a financial investment service through a number of entities. Investors of the various entities under the business made requests to release their securities to be paid out, which was only realised for some investors. Consequently, the other investors filed complaints with the FMA about the default in payment. Pursuant to complaints from the investors, the FMA moved to file an application under sections 137F and 137G of the Financial Advisers Act 2008. On 2 November 2012, the FMA applied to the High Court in Wellington seeking permission to appoint receivers to manage the business of David Ross and his associated companies. The High Court issued an interim order to freeze the assets of David Ross and the various companies under him as a result of the application. As a result of the ‘serious concern about dysfunction and adequacy of the management of the business’ , the FMA decided to conduct an investigation of Ross’s business and companies. Main concerns put forward included a failure to make decisions, a failure to implement requests from investors for payment and inadequacies of records. At the time of filing the application, preliminary data determined that Ross’s business involved approximately 900 investors and with an aggregate account balance crossing $430 million. The business was 2 years in arrear with regard to lodging its tax returns and preliminary investigation showed

Get Access