CDO Settlement: Securities Commission statement

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The Securities Commission welcomes the settlement achieved between the Commerce Commission and ANZ National Bank Limited (ANZN) and ING (NZ) Limited (ING).

Tuesday, June 22nd 2010, 4:27PM 1 Comment

 The settlement relates to the Commerce Commission's investigation into alleged breaches of the Fair Trading Act 1986 by ANZN and ING and other entities in relation to the marketing, promotion and sale of the ING Diversified Yield Fund and ING Regular Income Fund ("Funds").

The Securities Commission considers the settlement achieves an appropriate outcome for investors in the Funds. 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 undertakings and deed specify that:

• ING acknowledges the Securities Commission's concerns that some of its alleged breaches of the Fair Trading Act, if prosecuted and proven, may constitute breaches of the securities laws.
• ING and ANZN acknowledge the Securities Commission's concerns about the Funds and will ensure ongoing compliance with the securities laws.
• ING will arrange an external audit and review of its processes and procedures for product development, preparation of offer documents and marketing material and advertising securities offerings.  ING will to report to the Securities Commission on, and implement, the recommendations coming out of the review. ANZN will facilitate and assist with the ING audit, review and implementation.

The acceptance of the enforceable undertakings does not affect the Securities Commission's powers to take any future action against ANZN, ING and/or their related parties in respect of their future conduct. 

The settlement deed (incorporating the enforceable undertakings) can be found on the Commission's website (yet to be uploaded).

The undertakings are entered into under section 69J of the Securities Act 1978.

The Commerce Commission settlement and background on the Commerce Commission investigation be found on their website: www.comcom.govt.nz/

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