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  4. Warning: Offers from Mr Bernard Whimp May Not Be in Your Best Interests

Warning: Offers from Mr Bernard Whimp May Not Be in Your Best Interests

This is a warning from the Financial Markets Authority.

The Financial Markets Authority urges you to treat this offer with great caution.

Before you accept it, carefully read the details of what you will be paid and when, and any fine print anywhere on the offer or forms.

The Financial Markets Authority considers it is not in your interests to accept an offer that is for less than the market price, or where you will have to wait longer than three days to be paid.

Make an informed decision - seek advice from a registered financial adviser, your lawyer, your accountant, a Community Law Centre or Citizen's Advice Bureau.

Even if you've been asked to respond urgently, take the time to make a few important checks:

  • How much will you receive per share? Check the most recent market price for your shares and compare it with the price you are being offered. For listed companies, the most recent price is available on the NZX website and in newspapers. If your investment isn't traded on any organised market, find out how much it is likely to be worth from a registered financial adviser.
  • When will you get paid? Make sure you understand when and how you will get paid. It may be that you won't get paid for some time after you've handed over your shares. Payment may be made in instalments, rather than in a lump sum, and these payments may be spread over many years - possibly ten or fifteen years.
  • Who is making the offer? The offer may have come from an entity associated with Mr Whimp that has little or no assets. If you accept it, you will be trusting a stranger with no known financial substance to pay you for your shares when they say they will. Check who you are dealing with, and consider whether they are trustworthy and likely to pay.

The Financial Markets Authority specifically warns you that if you sell your shares by accepting this offer, you risk selling them for less than you would get by selling them through a sharebroker.

If you sell shares through a sharebroker you will receive the full market price for your shares (less any brokerage fees) and you are likely to receive payment within 3 days. You can find a sharebroker in the Yellow® Pages under "sharebroker", on the NZX website, or by talking to a registered financial adviser.

The Financial Markets Authority regulates New Zealand's financial markets. Our main objective is to promote fair, efficient and transparent financial markets. To find out more about us and for help with investing see www.fma.govt.nz.