Complaints prompt Securities Commission to warn ING investors

The regulator reviewed ING's offer, but didn't find the documents to be misleading or deceptive. It acknowledged investors face a difficult decision with the outcome uncertain and urged them to seek independent legal or financial advice if they didn't understand the proposal.

"Investors are encouraged to carefully consider the information provided with the offer they received," the Commission said in a statement. "The potential future value of the units in the funds is extremely difficult to calculate."

ING offered investors in its two frozen funds 60 cents or 62 cents in the Diversified Yield Fund and Regular Income Fund respectively or the sale of their units at the same price while transferring funds into an ANZ cash account paying 8.3% interest for five years. In exchange for the buy-back, investors would have to waive their right to pursue any legal claims against the fund manager.

Investors have until July 13 to decide, and if they fail to respond to the deal they will remain as unitholders in the two funds.