Failed fund manager David Ross of Ross Asset Management faces three charges from the Financial Markets Authority alleging breaches of financial markets legislation, adding to his existing Serious Fraud Office charges.
The Wellington-based financial adviser faces one charge under the Financial Service Providers Act of providing a financial service when he was not registered for that service, the FMA says in a statement. The maximum penalty is 12 months' imprisonment or a $100,000 fine.
He is also charged under the Financial Advisers Act with knowingly making a false or misleading declaration or representation to the authority for the purpose of obtaining authorisation to become an authorised financial adviser. The maximum penalty is a $100,000 fine.
A third charge under the Financial Markets Authority Act alleges he supplied information or produced documents to the authority which he knew to be false or misleading. The maximum penalty is a $300,000 fine.
"Today's charges allege that David Ross showed a disregard for the financial adviser regime by misleading the FMA in his application to become an AFA," Belinda Moffat, FMA head of enforcement, says in the statement.
"These charges send a strong message that there are serious consequences if false information is provided to FMA for any license, and it reinforces the need for integrity in the system."
Earlier this month, five Crimes Act charges were laid by the SFO against Ross after a joint investigation with the FMA. The investigation into Ross Asset Management and related entities started in October when the FMA received complaints from investors who were unable to withdraw funds.
Mr Ross will appear in the Wellington District Court to face the latest charges on July 5 relating to the financial markets charges, and on July 2 on the Crimes Act charges.
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