FMA kicks off with Whimp warning
It's only been around for a day but the Financial Markets Authority has already put out a warning about Bernard Whimp's low-ball share offers.
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Hawke’s Bay
It didn’t take long - the Financial Markets Authority (FMA) has issued a warning about unsolicited offers that may be made by Bernard Whimp and entities associated with him.
Mr Whimp, who is known for making low-ball offers to investors in a variety of NZX-listed companies, is being targeted using FMA’s beefed-up powers.
“Shareholders are warned to treat any such offer with great caution and to seek advice from a registered financial adviser, lawyer, accountant, Community Law Centre or Citizen’s Advice Bureau,” FMA said today.
It has given notice to Mr Whimp, and a number of limited partnerships associated with him, that it will consider requiring them, and any person associated with them, to ensure any unsolicited offer they make contains a copy of the warning in a prominent position.
Mr Whimp has three days to make submissions, which FMA will consider before making its decision on Friday.
This is the first use of powers under the Financial Markets Authority Act 2011.
Limited partnerships associated with Mr Whimp have previously made unsolicited offers to buy shares directly from shareholders at less than market price, or where the sellers have to wait for up to 10 years for payment.
“FMA issued this warning because it considers it is not in shareholders’ interests to accept such offers,” said FMA chief executive Sean Hughes.
“Any shareholder who receives such an offer needs further information to enable them to make an informed decision about whether to sell their shares. The warning provides that information.”
“FMA considers that a fair, efficient and transparent financial market requires investors to make fully informed decisions with the best information available to them.”
Niko Kloeten
Mon, 02 May 2011
Mon, 02 May 2011
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FMA kicks off with Whimp warning
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