ASIC obtains travel restraint orders against former adviser

In a statement on Friday, the corporate regulator confirmed it has obtained travel restraint orders against Kristofer Ridgway, a Brisbane-based former financial adviser.

The orders were made on 11 June by the Federal Court on an ex parte basis without Mr Ridgway’s presence following an ASIC application.

Namely, the regulator explained it is concerned Mr Ridgway may have contravened financial services laws and requires him to remain in Australia while it investigates his conduct.

As per the order Mr Ridgway will be restrained from leaving or attempting to leave Australia until 16 December.

In April this year, ASIC permanently banned Mr Ridgway from having any involvement in financial services.

In a statement at the time, the regulator said it had determined a permanent ban was necessary due to concerns 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 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 Mr Ridgway is not a fit and proper person to provide financial services due to conduct he engaged in during this period, namely:

• 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.

ASIC’s investigation into Mr Ridgway is ongoing.