FMA takes first action on Whimp

The new Financial Markets Authority came out swinging yesterday, using new powers to put Bernard Whimp on notice over his low-ball share offers.

In its first day of existence the FMA told Whimp - and limited partnerships associated with him - that it will require unsolicited offers to contain a copy of a warning in a prominent position.

Whimp has three days to make submissions on the matter, which the FMA will consider before making its final decision on Friday.

Whimp has been sending shareholders of NZX listed companies unsolicited offers to buy shares at prices below the NZX market price.

The offers have been condemned by boards and shareholder representative groups because they do not include a comparison with the market or have important terms in fine print.

This is the first use of powers under the Financial Markets Authority Act, which set up the authority.

The authority has taken over the functions of the Securities Commission and consolidates other regulatory functions of government.

- NZPA