A former Brisbane-based financial adviser has been permanently banned from any involvement in financial services.
Kristofer Ridgway was an authorised representative of AFS licensee Shaw and Partners from 2015 to 2021 who recommended his clients invest in a range of international unlisted shares sourced by McFaddens Securities Pty Ltd, an Australian financial services firm based in Sydney.
ASIC determined that Ridgway was not a fit and proper person to provide financial services due to conduct between 2015 and 2021 when he:
- Caused some unlisted shares to be transacted between his clients at a significant price differential and used the price margin for his own benefit, including to pay personal debts;
- Disguised that a related party was the true owner and seller of unlisted shares that he arranged his clients to purchase;
- Made false statements in emails to clients in order to encourage them to purchase shares;
- Failed to disclose significant commission payments he received from McFaddens for the sale of unlisted securities to Shaw and Partners;
- Accepted some commission payments in breach of the conflicted remuneration laws, and
- Made false statements to ASIC during an ASIC compulsory examination.
ASIC felt a permanent ban was necessary as Ridgway was not a fit and proper person to provide financial services, not adequately trained or competent to provide financial services, and likely to contravene financial services law.
Ridgway had the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision and his banning was recorded on ASIC’s banned and disqualified register.
ASIC should go back to 2010 4 Corners Report where Australian superannuants (retail investors) lost $1 billion in the Timberwolf scandal, where an American investment banks was dealing in its own securities that were unlisted and paid commissions to sell the securities before the GFC collapse. “Tony” D’Aloisio AM was former Chairman of the Australian Securities and Investments Commission (ASIC) blamed advisers, not the institution doing self dealing. Of course, advisers would not have had access to full information disclosure, caught up in a Catch22. SEC in USA prosecuted, ASIC twiddled its thumbs. 4 Corners Timberwolf program showed the US Senate Hearing. Australian politicians failed to hold their own Senate Hearing (lame ducks).
I just love how Stockbrokers have this selective use of the term Financial Adviser that suits them. When it comes to education requirements and commissions there Stockbrokers..when it comes to marketing for new clients or being banned they’re Advisers.