Law tweaked to target Bernard Whimp

Parliament's commerce committee has recommended changes to the legislation establishing the Financial Markets Authority should include amendments to target low-ball share offers.

Some provision aspects appear to directly target the likes of Bernard Whimp, and will require repeat offenders to brand their offers with warning.

Commerce Minister Simon Power said: “In addition, the committee has recommended changes that target low-ball unsolicited offers. One change is an enhanced warning power for the FMA so those with a history of making these offers can be made to display a prominent warning to that effect when they sent documents to investors.”

The committee reported back on the Financial Markets (Regulators and KiwiSaver) Bill and Commerce Minister Simon Power said the changes were being mulled as part of the review of securities law but would now be brought forward under the FMA.

The bill also includes provisions for minimum-offer cooling down period and disclosure of market price.

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