The High Court has granted an application by the Financial Markets Authority to appoint John Fisk and David Bridgman of PwC as receivers and managers of Ross’s investment firm Ross Asset Management, which has had its assets frozen.

While PwC manages the company, unnamed brokers from First NZ Capital will look at the state of its investments.

The order, made today in the High Court at Wellington by Justice Jill Mallon, gives Fisk five days to make a preliminary report on the businesses that have been frozen.

The FMA was awarded a freezing order last Friday after a five-day investigation into the company and its associated entities, which are directed by Ross, a Wellington-based Authorised Financial Adviser.

It started the investigation after being contacted by concerned investors, a number of whom had been unable to withdraw their money.

Hugh Rennie, QC, the lawyer representing the FMA, told the court today that Ross Asset Management was believed to have more than 900 clients, with accounts totalling more than $430 million. 

He said there could be a shortfall on clients’ accounts and said the company seemed to be two years behind on its tax returns.

Ross’s lawyer Pip England of Chapman Tripp said his client is currently in hospital; although he couldn’t divulge the nature of his health issues he said he had been in hospital “for a number of days”.

England said he would be issuing a statement on the matter in the next few days.