Investors pondering whether to accept an offer over their frozen assets in ING have the Government's sympathy but Commerce Minister Simon Power says he has to allow the process to follow its course.
More than 13,000 investors have had $700 million in the Diversified Yield Fund (DYF) and Regular Income Fund (RIF) locked since March last year.
The funds management company has offered investors 60 percent of what they paid - 60c per unit for DYF and 62c per unit for RIF investors.
However, by taking the offer, which expires today, they waive their rights to take or benefit from legal action or claims.
ANZ owns 49 percent of ING New Zealand, which in 2008 suspended withdrawals from two funds that invested in collateralised debt obligations - the funds at the centre of the US financial markets meltdown.
Some investors have complained that the bank advised them that putting the money into ING was a safe investment and have complained to the banking ombudsman.
The Commerce Commission is also investigating whether the funds broke the Fair Trading Act.
Labour's commerce spokeswoman and former minister Lianne Dalziel said ING should not be seeking the legal waiver while the commission investigation was still under way.
"I don't believe ING should be able to essentially get away with its statutory obligations simply through the timing of their offer."
She was surprised that the Government had not intervened and was considering a member's bill to ensure that investors who took the offer could still seek legal remedies.
Mr Power said he could not advise investors whether to accept the offer which he had been advised was neither misleading nor deceptive.
"I have huge sympathy for the people involved, but there is a process under way with the commission and I have to have confidence in that process," Mr Power said.
Prime Minister John Key said he believed the company was genuine in its offer.
"There's been a proposal put up which would see people have their total capital funds effectively returned after five years with no interest, and takes into account some of the payments received in the past. It's up to the Commerce Commission to adjudicate on that matter," Mr Key said.
"It's an indication of how difficult the financial markets have been in the last year or so. The company is genuinely trying to work through and get an acceptable solution."
Andrew Davidson, a spokesman for the Frozen Fund investor group, said he expected a significant number of ING investors to take up the offer.
"I would be surprised if anybody didn't take it up. We are being backed into a corner and forced to sign under duress. What option do we have?"
His group was formalising into a trust and setting up a board of ING investors from around the country to pursue their money.
"They may have thought we were going to go away. If they have, they have miscalculated us."
