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William Rolleston
Federated Farmers says it is time to move on after the Commerce Commission’s $2.97 million settlement with Westpac over the selling of interest rate swaps.
The commission has settled with all the banks – ANZ, ASB and Westpac – that promoted and sold interest rate swaps to rural customers between 2005 and 2012.
Federated Farmers president William Rolleston says the agreements are a fair and equitable solution and it’s time to move on. The banks must pay a total of $23.67m to 256 eligible farmers, says Rolleston.
“While some farmers felt they were not adequately informed of the risks with swaps, it is that important lessons are learned from this. Farmers must get independent advice and be sure they understand the implications of the contracts they sign. And banks must not take that understanding for granted. Trust between banker and client is paramount: it must be earned and can quickly evaporate.”
Westpac will pay $2.47 million to 38 eligible customers who registered their complaints with the commission. Westpac will also pay $250,000 towards the commission’s costs and $250,000 to Rural Support Trusts.
Commission chairman Mark Berry says the settlement was a good outcome for the 38 eligible farmers. “The payments to be made under the settlement are, in our view, a reasonable approximation of the potential losses that the commission could have recovered through any court process.”
Berry says securing a settlement was important in averting the uncertainty of contested and lengthy court cases.
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