Advisers take another undeserved reputational hit
The reputation of financial advisers has taken another blow amid reports that former Shaw and Partners authorised representative, Kristofer Ridgway, was a ‘financial adviser’ when others suggested he was a “stockbroker”.
The Australian Securities and Investments Commission (ASIC) chose to describe Ridgway as a former ‘financial adviser’ but neither the Financial Advice Association of Australia (FAAA) nor the Stockbrokers and Investment Advisers Association (SIAA) believe that descriptor is appropriate.
FAAA chief executive, Sarah Abood said she did not believe ASIC’s description of Ridgeway as a ‘financial adviser’ was appropriate and it was yet another frustrating example of how even people not licensed to give advice could be described as ‘financial advisers’.
She said that, in the circumstances, she believed Ridgway might better be described as undertaking stockbroking activities.
For her part, SIAA chief executive, Judith Fox said that Ridgway could best be described as having gone rogue and operating outside of the authorisation provided by Shaw and Partners which is a member of the SIAA.
The ASIC MoneySmart web site attributes Ridgway as having been authorised by both Shaw and Partners and, before that, Bell Potter Securities and holding a Bachelor of Business and a Graduate Diploma in Applied Finance and Investments with his most recent qualification being a Level 1 Accredited Derivatives Adviser.
Abood agreed with the analysis that the types of conduct referenced by ASIC in permanently banning Ridgeway were not commonly undertaken by financial advisers.
Fox said it was clear that the findings made by ASIC against Ridgway showed that he had operated outside of the authorisation provided by his licensee.
ASIC said that from 2015 to 2021, while an authorised representative of Shaw and Partners, Ridgway recommended his clients invest in a range of international unlisted shares sourced by McFaddens Securities Pty Ltd.
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 Limited, 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 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.
It’s not as if ASIC knows anything about financial planning. Incompetence to this level must be deliberate.
It seems everyway we turn, where’re on hiding to none!
Allegedly, ASIC were made aware of Mr. Rideway’s transgressions back in April 22 when it became known to his employer that he had gone rougue and advised on investments outside of their ‘APL’….
Then, on seeing the promo for the 60 Minutes show which ran on Wednesday the 12th April, ASIC banned Mr. Ridgeway on Friday the 14th April…
The Fairfax/Nine media circus over this has been another element in Adele Ferguson’s ongoing vilification campaign against financial advisers. As usual, she has taken a specific incident of bad behaviour, and generalised and exaggerated and misrepresented it into a hate campaign against all financial advisers.
Adele’s vilification campaign has unnecessarily turned large numbers of Australians away from professional financial advice. She has pushed consumers down the road of poor DIY options and dodgy unregulated advice & products. She has done far more damage in aggregate to Australian consumers’ finances, than all examples of poor financial advice combined.
Yep…so true.
Have emailed the Age in Melbourne following their story on this matter. I don’t expect a reply but I do expect better. You don’t call car thieves in the illegal car rebirthing arena as reused car salesmen.
Actually he was officially an equities adviser but as ASIC draws no distinction between Equities Advisers, Financial Planners and Investment Advisers why should the newspapers? As an old qualified broker who became a planner I know there’s a world of difference. It’s time those in their ivory tower woke up to that.
hI Did anyone see in another magazine the headlines ASIC busy in the first 3 months With all the extra fees for investigations they found 5 people on various dishonest acts oops 1 for cheating in a false exam result It means the industry must be in very good place or how slack is ASIC
“The ASIC MoneySmart web site attributes Ridgway as having been authorised by both Shaw and Partners and, before that, Bell Potter Securities and holding a Bachelor of Business and a Graduate Diploma in Applied Finance and Investments with his most recent qualification being a Level 1 Accredited Derivatives Adviser.”
All those “qualifications” and not a scintilla of evidence of “professionalism”. Passed the FASEA exam too. And, probably the Ethics unit, coached by employers!