Investigation into ING funds still 3 months away

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The Commerce Commission says it will be another three months until it completes itsinvestigation into how ING's Diversified Yield and Regular Income Funds were sold.

Thursday, December 31st 2009, 5:11AM 1 Comment

by Jenha White

The Commerce Commission describes its investigation into the ING frozen funds as complex and says it will not make a ruling until next year.

Investors were hoping to know by Christmas whether legal action would be taken against ING and its owner ANZ over allegations of a breach in the Fair Trading Act with its Diversified Yield and Regular Income Funds.

The Commission says it anticipates reaching a decision as to what action may be appropriate in late March 2010.

"The matters under investigation are complex and there is a large amount of information being provided by ING, ANZ and other parties which must be considered," a spokesperson says.

The Frozen Funds action group set up by those seeking a better compensation package says while this means investors will have to wait for a few more months, it believes this points at the thoroughness with which the Commission is investigating the deeds of ING and ANZ.

"We believe ING and ANZ have gone to great lengths to lure and then lock customers into these investment schemes and then pretend they had no idea how risky these investments actually were.

"It will take investigators from the Commission a while to uncover the truth, but we believe they will."

The Commission began investigating the frozen ING Diversified Yield and Regular Income Funds in December last year.

More than 13,000 investors had money in the funds in March last year and most investors accepted a settlement agreement funded by ANG and ANZ in July this year.

The condition of the settlement required investors to waive any right to pursue legal action, although investors who joined through ANZ National still had an avenue of redress through the Banking Ombudsman Deborah Battell.

She believes around two thirds of those who have applied for compensation have received their compensation letters.

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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