The Australian Securities and Investments Commission (ASIC) has announced it has permanently banned Brisbane-based former financial adviser Kristofer Ridgway from having any involvement in financial services.
In a statement on Thursday, the regulator said it had determined a permanent ban was necessary due to concerns that Mr Ridgway is not a fit and proper person to provide financial services, is not adequately trained or competent to provide financial services and is likely to contravene financial services law.
From 2015 to 2021, while an authorised representative of AFS licensee Shaw and Partners, ASIC said that Mr Ridgway had recommended his clients invest in a range of international unlisted shares sourced by McFaddens Securities. McFaddens is described as an Australian financial services firm based in Sydney with business connections in the United Kingdom.
According to ASIC, Mr Ridgway promoted international unlisted shares in pre-IPO companies including Steppes Alternative Asset Management, Trinus Impact Capital, and ASAF Critical Metals and its Australian subsidiary Aus Streaming, which is now in liquidation.
ASIC determined that Mr Ridgway is not a fit and proper person to provide financial services due to conduct he engaged in during this period, 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.
- Made false statements to ASIC during an ASIC compulsory examination.
The regulator noted that Mr Ridgway has the right to appeal to the Administrative Appeals Tribunal for a review of its decision.
