Former Brisbane adviser permanently banned
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.
AUTHOR
Laura Dew
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
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.
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).