New law needed to block Tweed
The Federal Government says it would need new legislation to curtail the activities of National Exchange which has been making below-market offers to retail shareholders in popular companies such as IAG and AMP. Proprietor David Tweed, based in West Melbourne, sends out thousands of offers to small shareholders and has succeeded in entering several companies' top 20 shareholder lists before selling the stocks for huge profits.
The new Financial Services Reform Act has made it easier for him to operate as he is now no longer required to include the market prices of the shares he's seeking to purchase; nor is he required to hold a dealer's licence. Senator Ian Campbell said he'll put a bill to Parliament in the Autumn session, requiring dealers who make unsolicited offers for shares to display both the market price and the offer price equally prominently.