Complex process aims to give ING investors 95 per cent of their money back

About 15,000 investors in two funds frozen more than two years ago will have to wait another three weeks to find out how much compensation they will get because the process is so complicated.

The Commerce Commission yesterday revealed the method it will use for divvying up the $45 million settlement agreement it reached with ING and ANZ a month ago.

But even the commission admits the process - which will aim to pay people back about 95 per cent of their initial capital investment in the ING Regular Income Fund and Diversified Yield Fund - is so complex that individuals will not be able to work out how much they will get.

"Because it is based on individual circumstances, there is no way we can say up front what each person will get," Commerce Commission enforcement branch manager Graham Gill said.

Instead, investors will have to wait for a letter to be sent out by ING in the next three weeks telling them what they can expect. The payment is due to be made in mid to late November.

The commission expects around 80 per cent of investors will get a stake in the money, but others who have already received a top-up on a $500 million settlement deal reached last year may get nothing more.

Mr Gill said it was complicated because individual circumstances were very different. "Everyone has put in different amounts."

Some who invested more than $50,000 will have been able to claim a tax rebate on the investment loss made by the funds.

"If through claiming the tax rebate they have received over 95 per cent of their capital back they will not receive anything more."

Gerard Prinsen, spokesman for Frozen Funds investor group, said the approach was the fairest method.

"Whether people get back 90c or 95c [in the dollar] - I'm not going to squabble over that.

"But if the decision had been made earlier to pay out the money based on a per-unit basis, it would have been far easier.

Because ING/ANZ dragged it out, there are now four or five different avenues of compensation.

"It's now too complex and too dependent on individual arrangements."

DIVIDING UP THE MILLIONS
* $45 million settlement reached between the Commerce Commission and ING/ANZ.
* 80 per cent of 15,000 investors will get some money.
* The other 20 per cent will not receive anything because they have already received around 95 per cent of their original investment back.
* Payment should be made by the end of November.