FMA first: licence suspended

Last updated 07:23 09/01/2013

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The first disciplinary action has been taken against suspected Ponzi scheme operator David Ross, with the Financial Markets Authority (FMA) suspending his licence for six months as it continues to investigate possible Securities Act breaches.

On December 17, the FMA board formally suspended Ross' licence, granted in 2011, as an authorised financial adviser. It is the first time the FMA has used such powers.

Earlier the FMA wrote to Ross outlining its concerns, seeking a response and offering a hearing before it made a determination.

"Following correspondence with Mr Ross' solicitors, no hearing was requested with us nor were submissions put challenging our concerns," chief executive Sean Hughes said by email.

Reports by liquidators PricewaterhouseCoopers say only $11 million of the almost $450m his clients believed was being managed for them has been established. Fairfax NZ

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- © Fairfax NZ News

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