The Financial Markets Authority (FMA) is reminding investors to be wary of unsolicited offers being made by Stock & Share Trading Company Pty Limited for shares and other securities. Stock & Share's offers are often for significantly less than the market value of the securities.
Stock & Share has regularly been making unsolicited offers and continues to do so. FMA is aware of two current offers by Stock & Share, one for certain capital notes issued by Fletcher Building Industries Limited and the other for shares in TOWER Limited. Stock & Share has also recently requested registers of security holders from a number of other entities, including ASB NZ Property Trust, so it is likely that it will be making further unsolicited offers.
Since October last year, Stock & Share has been required to carry an FMA warning statement on any unsolicited offers it makes, pursuant to an enforceable undertaking provided to FMA. The warning statement encourages investors to make informed decisions by recommending that they talk to an Authorised Financial Adviser (AFA) about what their investment is really worth and by disclosing the market price of the securities, or alternative pricing information if the securities are not listed.
FMA has recently published a brochure on unsolicited or "low ball" offers which can be found here or picked up from a Citizens Advice Bureau.
A list of Authorised Financial Advisers (AFAs) can be found here.
A list of sharebrokers, including online brokers, can be found here on the NZX website.
FMA's earlier general warning on Stock and Share offers can be found here.