ANZ reaches record settlement over ING funds

ANZ will pay the settlement on top of $500 million already available to investors from its compensation offer last year, according to documents obtained by BusinessWire. That eclipses the $27.5 million settlement reached with Midavia Rail and David Richwhite over alleged insider trading of Tranz Rail shares.  

The regulator found the promotion of the degree of investment risk in the ING funds was "misleading" and that there was sufficient evidence to pursue proceedings against both ING and ANZ for breaching the Fair Trading Act. The regulator decided against this course of action, saying the settlement was the best outcome for investors in the funds.

The Securities Commission will also end its investigation into the funds, the documents say.  

"The commission believes that the best interests of New Zealand consumers, and the affected investors in particular, are served by this settlement, which will see payments to eligible investors totalling $45 million," chairman Mark Berry said in a draft statement sighted by BusinessWire. "Any court proceedings were likely to have involved significant delay, cost and risk, with no certainty of achieving an outcome that would benefit the affected investors."