Kristofer Ridgway was sacked from Shaw and Partners.Credit:LinkedIn
“Shaw and Partners is currently conducting a compliance review of clients holding certain unlisted securities,” the broker said in an email to clients. “Please contact us ... if you have received advice or assistance in investing in the following unlisted securities from Shaw and Partners.”
The unlisted products are Marshall Islands company Trinus Impact Capital,the British Virgin Islands-based Steppes Alternative Asset Management and British Columbia company ASAF Critical Metals.
Sources,who asked not to be named for confidentiality reasons,believe the adviser Mr Kristofer Ridgway,introduced more than 40 of Shaw’s clients to financial services firm McFaddens Securities and its predecessors,run by Mr David Sutton,who is then believed to have put them into at least three unlisted products.
Shaw Partners co-chief executives Earl Evans and Allan Zion.
Mr Ridgway was sacked on March 4 after a client lodged a complaint with Shaw’s head office about one of the products,which was yet to deliver on any of its promises. It triggered an extensive investigation by Shaw after it realised Ridgway had worked outside of its systems and procedures,introducing Shaw clients to products that were not on its approved product list.
Sources said Shaw clients’ exposure to those three unlisted funds was $3.5 million.
Mr Earl Evans,Shaw’s co-chief executive,said clients were placed into those funds without the firm’s knowledge. “This is a serious concern and as soon as we were alerted to the breach we involved the regulator,other authorities,our lawyers and contacted all clients,” he said. “It is an isolated incident by one broker,and it is not a reflection of who we are.”