The Australian Securities and Investments Commission (ASIC) has brokered a final settlement deal against failed property group Westpoint and its auditors, KPMG.

The regulator says investors’ capital in Westpoint-related products totalled more than $388 million at the time of the group’s collapse in 2005.

This latest $67.45 million settlement brings the expected investor returns to between $160 million and $170 million.

ASIC Chairman Tony D’Aloisio says the settlement will avoid delays associated with court action which had been scheduled for September.

He says it also provides an additional return for investors who lost money as a result of the collapse in 2005.

“A confidential commercial resolution is, because of the age and circumstances of the investors, the preferred resolution in a case such as this where litigation has taken years,” Mr D’Aloisio said.

KPMG says in a statement says although the settlement brings the court action to an end, it is not an admission of fault as auditors.