Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Investors better informed about low ball offers

Investors better informed about low ball offers

FMA says in a report published today that new regulations are assisting investors to make better informed decisions about unsolicited or low ball offers. The report also acknowledges that companies whose investors have been targeted have contributed to investors being better informed.

The Securities Markets (Unsolicited Offers) Regulations 2012 came into force on 1 December 2012 amid growing concern that investors were being encouraged to sell their shares and bonds at below market price.

Monitoring unsolicited offers and compliance with the new regulations was an important focus for FMA throughout 2013 because of the need to rebuild consumer trust in the market.

The Unsolicited Offers Monitoring Report released today by FMA notes that a decrease in complaints and in the types of offers being accepted indicate that the disclosure required by the regulations is helping investors to make more informed decisions about unsolicited offers.

In particular, the report says, investors with large holdings appear less likely to accept unsolicited offers than those with small holdings. Also, deeper discounts to the market price appear to result in lower rates of acceptance.

However, investors continue to accept unsolicited offers despite being able to get more for their investments by selling through a broker. In some cases the difference between the amount received and market value is substantial.

FMA’s monitoring indicates that there is a good level of compliance with the regulations in regard to unsolicited offers received by investors. Instances of non-compliance have been relatively minor and, in all cases, rectified to FMA’s satisfaction.

FMA’s powers in regard to unsolicited offers were previously much more limited.
Elaine Campbell, Head of Compliance Monitoring at FMA, said: “It’s good news that the new regulations and FMA’s stronger regulatory powers have resulted in investors being better protected. We will continue to monitor unsolicited or low ball offers and take any enforcement action necessary, but the new rules seem to be working well.”

A copy of the Unsolicited Offers Monitoring Report can be found here.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news