FMA Investigates Christchurch Investment Firm Led by Bernard Whimp

The Financial Markets Authority (FMA) is conducting an investigation into the Christchurch-based investment firm, Chance Voight Investment Corporation, which is led by businessman Bernard Whimp. The investigation also encompasses several subsidiaries and associated entities linked to the Chance Voight Group. As a result of the FMA’s request, the High Court in Christchurch has appointed PWC (PricewaterhouseCoopers) as interim liquidators for the involved companies.

The FMA’s inquiry includes six companies: Chance Voight Investment Corporation Limited, Chance Voight Investment Partners Limited, CVI Securities Limited, CVI Financial Limited, CVI Partners Mortgage Fund Limited, and CVI Partners Mortgage Income Fund Limited. PWC is expected to provide a report to the High Court by January 26, 2024.

Whimp gained prominence during the 2010s for his controversial strategy of making off-market offers to purchase shares from investors at prices below their market value. The Securities Commission previously took legal action against Whimp for what it described as misleading “low ball” offers. In response to these practices, the FMA implemented stricter regulations in 2014, effectively curbing off-market offers.

The FMA has stated that its investigation into the Chance Voight entities remains active and has refrained from commenting further due to existing suppression orders. Notably, last month, Chance Voight acquired Patterson Wealth, a financial advice provider, but it appears that Patterson Wealth is not impacted by the recent liquidation orders.

The developments surrounding Chance Voight Investment Corporation and its affiliates underscore the scrutiny facing investment firms operating in the current financial landscape. As the investigation progresses, stakeholders will be keenly watching how this situation unfolds and its implications for the industry.