The New Zealand Commerce Commission and FMA has investigated alleged contraventions of the Fair Trading Act 1986 by ANZ in relation to the marketing, promotion and sale of interest rate swaps to rural customers from 2005 to 2009.
High court judgment resulted in the following declaration:
Between on or about July 2005, and 31 March 2009, ANZ Bank New Zealand Limited breached s 9 of the Fair Trading Act 1986, in that, being in trade, it engaged in conduct that was misleading in relation to some of the customers listed in Schedule 1 to the Statement of Claim, in that it understated some of the risks and/or overstated some of the benefits of interest rate swap arrangements to those customers.
The Commerce Commission has reached a $19 million settlement with ANZ Bank New Zealand Limited (ANZ) in relation to the marketing, promotion and sale of interest rate swaps to rural customers between 2005 and 2009.
Consequently, FMA has also agreed to resolve issues by the settlement agreement and enforceable undertaking. See media release.