21 Jul 2010

Commission decides ANZ compo formula

2:36 pm on 21 July 2010

The Commerce Commission has decided how to distribute $45 million in compensation from the ANZ to 15,000 investors who lost money in two frozen ING funds in 2008.

ANZ and the Commerce Commission last month reached a settlement over the bank's marketing of the ING funds involving payment of $45m to investors.

The commission says about 80% of investors who lost money in the funds will share the $45m. The remaining 20% are likely to recover, or have already recovered, more than 95% of their initial investment through other remedial steps.

The commission says its approach is fairer than a pro-rata cents-per-unit payment to all investors, which would have provided further payments to those who had already received their capital back, at the expense of other investors who may have ended up getting only 70 cents to 80 cents in the dollar.