The Financial Markets Authority says it has reached a settlement with ASB regarding the sale, promotion and marketing of interest rate swaps to some rural customers, following on from a Commerce Commission investigation last year.
The commission reached a separate settlement with ASB in December 2014. The FMA settlement was
reached based on the conclusions from the commission's investigation and the FMA's engagement with ASB over the marketing of interest rate swaps to rural customers.
Under the settlement with the commission, ASB agreed to make $2.7 million available for payment to the eligible customers who registered their complaints with the statutory body. The FMA said that payment process was due to be completed soon.
ASB also agreed to pay $250,000 towards the commission's costs and another $250,000 to Dairy Women's Network, a charitable trust.
Under the Financial Markets Conduct Act 2013, from April 1, 2014, the FMA has responsibility for regulating misleading and deceptive conduct in relation to any dealing in financial products or services.
