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.
Make an informed decision - seek advice from an authorised financial adviser, 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 for your investment? Check the most recent market price for your investment 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 (for example because it is an interest in a failed finance company), find out how much it is likely to be worth from a authorised financial adviser, the company that offers the investment, or (if the company you invested in is in receivership) from the receivers. Receivers reports can give a good indication of how much you are likely to receive for your investment. You can find copies of the receivers reports by searching under the companies name on the Companies Office website.
- 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 investment.
- Who is making the offer? Check who you are dealing with, and consider whether they are trustworthy and likely to pay you.
The Financial Markets Authority regulates New Zealand's financial markets. Our main objective is to promote fair, efficient and transparent financial markets.
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Case: Stock & Share Trading Company Pty Ltd - Enforceable undertaking/ Order
