ANZ indemnity clause for mis-sold funds questionable - Molloy
26th Jan 09, 3:12pm
ANZ included a clause in its contracts indemnifying the bank if it mis-sold a fund to a customer, the Sunday Star Times has reported. Barrister Tony Malloy QC was reported as saying the indemnity clause could be challenged in court. "The bank required customers taking its investment advice to sign contracts featuring a clause indemnifying it from liability for selling them investments outside their risk profile, the SST reported here. The clause has been cited by the banking ombudsman in rejecting some of the claims made by ANZ customers who claimed they were missold the high risk ING Diversified Yield Fund and ING Regular Income Fund when they wanted low risk funds. The funds have been a debacle for ING and ANZ, losing 70% of their value after investing in CDOs. Your views? Comments below please.