The regulator directed the $45 million settlement to go to about 80% of the 15,000 investors to help top up repayments to 95 cents in the dollar. The other 20% who don't get a payment have already, or are likely to, have received more than 95% of their principal already.  

"The payment approach fulfils the commission's stated intention to return as much of investor's initial capital as possible, in the most equitable way," enforcement bran manager Graham Gill said in a statement.

"With 15,000 individual investors it has been necessary for the commission to make certain assumptions, rather than exactly calculating each investor's position."

The commission decided against pursuing court action against the fund manager and the bank over the promotion of the diversified yield and regular income funds, saying the punitive fine wouldn't have been worth the extra cost and uncertainty in achieving a successful prosecution.

The settlement was on top of more than $500 million already paid to investors through ING's offer last year and individual agreements through the Banking Ombudsman.

The regulator said it considered paying a blanket 7 cents to all investors, but decided against it as some investors would have only received 70% to 80% of their capital bank.

Payments are expected to be made by mid- to late-November.

The regulator assumed all investors accepted ING's offer of 60 cents in the dollar for investments in the diversified yield fund, and 62 cents in the case of the regular income fund, so the 1.5% of investors who chose not to waive their right to pursue legal action will likely fall short of the 95% target.

"If you did not accept the ING Offer and now wish to sell your units, you may wish to contact the ING to discuss whether a sale of your units can be arranged," the regulator said in a Q&A section on its website.

ANZ and ING accepted no liability in the settlement, though the bank accepted some of its advice from its advisers might not have been up to standard.