ANZ National Bank has apologised for misleading investors in two ING funds, following the announcement of a $45 million settlement.
The commission investigated whether the sale of ING's diversified yield and regular income funds breached the Fair Trading Act through misrepresentation of the risk involved in the funds.
The funds collected about $700 million from about 15,000 investors before being frozen in March 2008.
The regulator says it found the degree of investment risk stated by ANZ New Zealand was misleading. Commission chair Mark Berry says investigators found sufficient evidence to prosecute, but decided the settlement would be a better outcome for affected investors.
The settlement is in addition to the $533 million deal investors had already accepted.
ANZ acting chief executive Steven Fyfe says the bank apologises to investors who felt it had misinformed them, adding that few financial institutions have stood by their customers like ANZ has.
However, he adds, ANZ does not agree with all of the commission's views.
As part of the settlement, ANZ National Bank and ING accepted they may have breached the Act.