PR.co.nz

Online Press Release Service for New Zealand  
Submission, publication, distribution and promotion of New Zealand online press releases.
Submit Your Press Release


Payment Distribution for ANZ ING Investors

(PR.co.nz) The Commerce Commission has determined the payment method for distribution of the $45 million settlement fund agreed with ANZ National Bank Limited (ANZ) and ING (NZ) Limited (ING) in respect of the ING Diversified Yield Fund (DYF) and ING Regular Income Fund (RIF).

The Commission has determined that the payment method should target returning about 95 per cent of the capital originally invested by eligible investors, taking into account payments already received or likely to be received.

On 22 June 2010 the Commission announced that it had reached a settlement with ANZ and ING in relation to its Fair Trading Act investigation into the promotion and marketing of the DYF and RIF. As part of the settlement, ANZ and ING accepted that some of their conduct may have breached the Fair Trading Act, and agreed to pay a further $45 million to investors.

Approximately 80 per cent of investors should receive a payment from the $45 million fund. The remaining investors who do not receive a payment are likely to recover, or may have already recovered, more than 95 per cent of their initial capital through other remedial steps including accepting the ING offer, receiving compensation from the ANZ or through the Banking Ombudsman’s Office, and through claiming adjustments on tax losses in relation to their investments in the funds.

The payment method has been determined based on information supplied by ING and nominee providers, and was modelled by experts working closely with the Commission and ANZ.

“The payment approach fulfils the Commission’s stated intention to return as much of investor’s initial capital as possible, in the most equitable way. The Commission believes this is the best available outcome for the majority of investors,” said Commerce Commission Enforcement Branch Manager Graham Gill.

“With 15,000 individual investors it has been necessary for the Commission to make certain assumptions, rather than exactly calculating of each investor’s position. Taking this approach we can ensure that the payments approximate each investor’s likely circumstances, are equitable and are quickly executed,” said Mr Gill.

An alternative approach considered by the Commission was to make a pro rata or ‘cents per unit’ payment. This would have seen affected investors receive approximately 7 cents for each unit they held in the Funds. Ultimately, the Commission concluded that this method did not provide for the fairest distribution of the settlement proceeds, as it could have provided a further payment to those who have already received their capital back, at the expense of other investors who may have ended up receiving only 70 to 80 per cent of their capital back.

The Commission, having determined the method of payment, now requires ING and ANZ to finalise the payment calculations, to contact investors and process the payments. Investors should receive a letter within the next three weeks advising them as to whether they will be receiving a further payment.

Payments are expected to be made by mid-late November 2010.

A question and answer sheet is available on the Commission’s website at www.comcom.govt.nz/anz-ing-questions-and-answers
.

Media Release 21 July 2010 from Commerce Commission.

 



Questions about the information in this press releases should be forward to the business listed in the press release. Writers of press releases are solely responsible for the accuracy of the content.