“This settlement follows a two year investigation by the Commission into ING’s alleged breaches of the Fair Trading Act. On average it represents a further seven cents in the dollar on top of earlier payouts of either 60c or 62c per dollar for each of the funds’ investors,” Mr Boscawen said.

“While many investors will feel that a more substantial settlement should have been given, I feel happy for those ING investors who will receive additional compensation.

“The consistency of investors’ stories was impressive and I repeatedly heard from those that suffered losses that they had acted on the advice of ANZ, who said that investment in ING’s funds was as safe as a bank. Since being elected to Parliament I have fought for the rights of those investors who suffered losses from this bad advice.

“I congratulate the Commission on its investigation and the result it achieved. I particularly pay tribute to those members from the Frozen Funds Group who campaigned up and down the country for proper compensation from ANZ/ING.

“I doubt if such a substantial settlement would have been achieved, let alone such a thorough investigation completed, if it has not been for the publicity the Frozen Funds Group managed to generate,” Mr Boscawen said.

“Thousands of people have lost money in this collapse and all were expecting an answer next week. If it weren’t for my question to Mr Berry today, investors would not have been aware of the delay. This is not acceptable,” Mr Boscawen said.

“Investors’ funds were frozen in March 2008 and the case has dragged on ever since. Investors have been left in limbo – with some passing away without ever seeing the outcome.

“I urge the Commerce Commission to give this issue priority to ensure there are no further delays. Investors have waited long enough,” Mr Boscawen said.

“Since February I have been calling for an inquiry into the reasons why so many finance companies have collapsed – leaving a trail of devastation in their wake – and I feel it’s a personal victory that the Committee has finally agreed with me and I am grateful for their support,” Mr Boscawen said.

“The Committee will look at what changes need to be made to the law – if any – to prevent such losses happening in the future.

“Billions of dollars have been lost – with some investors having been driven to suicide. Many other investors have lost their homes, their life-savings and will now struggle to survive in their retirement years.

“With thousands of people – many of whom are elderly and vulnerable – being affected, I urge anyone with strong views on this situation to make a submission. The terms of reference can be found at www.parliament.nz.

“I am strongly urging investors to have their say so that this situation can be resolved and future investors are protected from the tragedy and heartache that we have witnessed to date,” Mr Boscawen said.

“According to Ms Brown, many ANZ/ING investors have delayed lodging a complaint because they are ashamed of the situation they have found themselves in,” Mr Boscawen said.

“In fact, some of these investors are only now informing their families that they have lost this money – so great is their embarrassment and humiliation in losing, what is for some, their life savings.

“But should ANZ extend its complaints deadline from July 31 to September 30 these investors may have some chance of recovering more of their money, with Ms Brown stating that if investors’ complaints are upheld, they will receive $1 for every dollar invested plus interest – potentially doubling the 60-62 cents in every dollar invested that ANZ/ING has agreed to refund.

“Given that ANZ has already been found to have misled more than two thirds of complainants adjudicated to date, it is highly likely that other complaints will be upheld.

“If ANZ is to have a hope of recapturing the trust of its customers and the wider public, it must show itself to be responsible and accountable. ANZ should extend the complaints deadline – its reputation depends on it,” Mr Boscawen said.

“ING Chief Executive Helen Troup’s claim, that the high level of acceptance ’signals that it was a good offer’, is completely laughable,” Mr Boscawen said.

“These investors were offered no real choice at all – either accept ING’s offer now and recoup some losses, or await the Commerce Commission’s decision with no guarantee of getting anything. When faced with such a bleak alternative who wouldn’t take the offer?

“These investors trusted ING’s assurances that these were medium-to-low-risk investments and some were told it was almost as safe as keeping their money in the bank. Without these, most would not have invested their money – which, for some, represented most of their life savings.

“To make matters worse the majority of those who accepted ING’s offer yesterday were only able to do so on the condition that they waive their right to seek further compensation should ING be found to have misled investors. This is outrageous.

“However, a small minority of investors can claim additional compensation until July 31 – around 2,350 ANZ investors are yet to complain to the Banking Ombudsman and can do so if they feel they were misled. It is essential that they lodge their claim before July 31, otherwise even this avenue will be denied them.

“That’s also why I am urging the Commerce Select Committee to urgently hear investors’ submissions and will support a Private Member’s Bill to protect investors from ING’s blackmail tactics,” Mr Boscawen said.

“Just days ago, Ms Dalziel announced that she will submit a Private Member’s Bill to protect the rights of the 14,000 investors that have lost money through these funds should ING/ANZ be found culpable,” Mr Boscawen said.

“Of those investors, 2,800 invested through ANZ and to date approximately 450 have lodged a complaint with the Banking Ombudsman. The Ombudsman has upheld two thirds of the complaints received.

“ANZ investors who have accepted today’s offer will now have only until July 31 to lodge a complaint with the Banking Ombudsman. Investors who miss that deadline will be deemed as having waived their right to recourse. In addition complainants who settle with ING/ANZ today will lose their right to further reimbursement should the Commerce Commission rule against ING/ANZ.

“This is completely unfair, and I have been working to protect the rights and interests of those who invested with ING/ANZ in good faith. I have been trying for some months to get the Commerce Committee to hear from investors who have lost money over the past two years from failed investments, with no success.

“With Ms Dalziel’s support, however, this should change. I have today written to her, and other Select Committee members, urging that this be added to the agenda for our meeting scheduled July 23.

“Notwithstanding that Ms Dalziel may not have completed drafting her proposed Bill or that it is yet to be drawn from the Ballot – there is no reason why the Commerce Committee cannot hear evidence on the proposed Bill and the issues that relate to it or from investors at our next meeting on July 23.

“The Commerce Select Committee cannot ignore this issue any longer,” Mr Boscawen said.

“This is an issue that I raised with some Select Committee members late last year, and I have been publicly calling for an inquiry for the past two weeks” Mr Boscawen said.

“I was pleased to gain the early support of Labour’s Lianne Dalziel – who indicated that Labour members of the Committee may be sympathetic to an inquiry provided the terms of reference could be agreed.

“Yesterday I was pleased to hear that Mr Power would also welcome an inquiry should the Commerce Committee decide to proceed.

“Mr Power stated his support would be conditional on carefully considered terms of reference, and provided that it did not cut across civil and criminal proceedings currently undertaken by regulatory authorities.

“To that end, I am continuing to talk with some of those involved in the finance industry – including lawyers, commentators, regulators and representatives of professional bodies. Identifying the key issues will help ensure that correct terms of reference can be framed.

“The need for an inquiry is further highlighted by Companies Office registrar Neville Harris’ recent report on finance company collapses. I would like to hear personally from anyone who feels they could contribute to an inquiry,” Mr Boscawen said.