Misleading representations about the degree of risk when promoting and marketing the ING Diversified Yield Fund (DYF) and the ING Regular Income Fund (RIF) by ING (NZ) Limited and ANZ National Bank Limited. $45 million in refunds to affected investors.
The Securities Commission welcomes the settlement that relates to Commerce commission settlement with ING and ANZN that they accept some of the representations made in marketing material and that ANZ advisors may have breached the Fair Trading Act. They have also agreed to make payments totalling $45 million to affected investors. See media release
It has therefore accepted enforceable undertakings, as part of a settlement deed, from ANZN and ING in respect of the conduct investigated by the Commerce Commission and has agreed to take no further action on this matter.
The DYF and the RIF were suspended by ING (NZ) Admin. The Funds had a total of 8,280 unitholders as at the date of suspension made up of 5741 in the DYF and 2809 in the RIF. The value of the Funds as at the date of suspension was $369.81m for the DYF and $163.7 million for the RIF, a total of $533.51 million.
ING (NZ) Admin established the RIF as another Australian unit trust. ING (NZ) Admin directed ING (NZ) to promote the RIF to New Zealand resident investors. The RIF had a similar investment strategy to the DYF. The RIF's performance target was to outperform the New Zealand 90-day bank bill rate by 1 per cent per annum after fees. The RIF was promoted to investors and prospective investors as having a low to moderate risk profile.
Let us know what you think
Did you find this page useful?