Lianne Dalziel

Labour Commerce and Justice spokesperson Lianne Dalziel has today launched a Private Members Bill to better protect investors.

"The Illegal Contracts (Unlawful Limitation on Regulators' Powers) Amendment Bill will ensure investors will not miss out on the benefits coming from a regulator taking action against an investment company that has breached the rules," Lianne Dalziel said.

"This issue was brought to my attention through the ING/ANZ settlement, where investors with money caught up in the ING Diversified Yield Fund (DYF) and the ING Regular Income Fund (RIF) were forced to sign away their rights to gain any benefit from someone else taking action against ING - including the regulator.

"I have no problem with any company making a settlement conditional on not proceeding with a civil cause of action - that occurs every day.

"But this case was being investigated by the Commerce Commission at the time and the Commission was included in the release. For me, that was a step too far.

"Allowing such a provision to stand would effectively prevent the Commerce Commission from fulfilling its role of upholding rules designed to protect investors should they find against ING/ANZ.

"In principle we cannot allow any regulator's authority to be undermined in this way, which is why I have chosen to amend the Illegal Contracts Act with this Bill.

"Over half a billion dollars were stranded in the ING product funds, with a lot of it representing the life savings of elderly people who continue to be angry and confused at the way they were treated.

"I think a Bill which makes moves to ensure Kiwi investors get a fair deal is worthy of the consideration of Parliament and I hope that MPs from all sides of the House give it a fair hearing," says Lianne Dalziel.

Lianne Dalziel paid tribute to the ING/ANZ Frozen Funds Group for their commitment to seeking justice for investors in the Funds.