6 May 2011
The Financial Markets Authority (FMA) has today ordered Mr Bernard Whimp and associated persons to include a warning from FMA at the beginning of any unsolicited offer they may make.
The order can be found at Warning Disclosure Order under Section 49 of the Financial Markets Authority Act 2011. The order requires that:
"One of FMA's principal objectives is to ensure New Zealanders have the information and resources they need to make sound investment decisions," said FMA CEO Sean Hughes.
"This order is intended to ensure any person who who receives an offer from Mr Whimp or his associates to buy their shares or other securities will have the information they need to decide if that offer is in their best financial interests."
While Mr Whimp has previously made offers to shareholders in NZX listed companies, this warning applies to any future unsolicited offers. This would include shares or any other securities, such as an investor's stake in a finance company.
Roger Marwick 04 471 7659
Under section 49 Financial Markets Authority Act 2011, if FMA has issued a warning, it may make an order that requires any offer documents of the type specified in the order to contain a copy of the warning in a prominent position, or be accompanied by a copy of the FMA warning (a warning disclosure order).
Before making a warning disclosure order, FMA must first:
FMA issued a warning on 2 May 2011 about unsolicited offers that may be made by Mr Bernard Whimp and entities associated with him. The warning is available here.
The order binds Mr Whimp, a number of limited partnerships associated with him and associated persons of Mr Whimp and the limited partnerships. This would include any limited partnership or company that Mr Whimp may form after the date of the order.
The limited partnerships associated with Mr Whimp are: Carlyle Securities LP, Cargill Securities LP, Carrington Securities LP, Chase Securities LP, Energy Securities LP, Fairfield Securities LP, NZ Credit Securities LP, NZ Investment Securities LP, Lineside Partners LP, Pearson Securities LP and Powershares LP.
FMA made the warning disclosure order on 6 May 2011 against Mr Whimp, under section 49(1) of the Financial Markets Authority Act 2011 for the following reasons.
A person who does not comply with an order made by FMA under section 49 of the Financial Markets Authority Act 2011 commits an offence and is liable on summary conviction to a fine of up to $300,000.
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