FMA guidance note on pre-offer publicity

The Financial Markets Authority (FMA) has provided guidance on what issuers may say in the public arena in the run-up to a securities offer.

This has become problematic as the Securities Act, which in this area has been little changed since it commenced in 1983, has not kept up with new technology and practices.

The note, although helpful is something of a stop gap measure pending the enactment of the Financial Markets Conduct Bill next year.

Current policy

The intention of current law is that investors should make investment decisions based on the formal offer documents – generally the prospectus and the investment statement or a single document incorporating the information in both.