Justice Ross Robson approved the $13.25 million settlement last week, increasing the amount repaid to investors by about 2¢ in the dollar, taking their returns to around 82¢ in the dollar.

The major part of the class action – a claim for $133 million plus interest from the trustee – is expected to go before the court in March 2017, as liquidators complete the wind-up.

Despite the likelihood of more money for investors, members of the group launching the class action were “extremely disappointed” with the $13.25 million figure.

In a statement, co-founders of the Kyabram Banksia Debenture Holders Actions Group, Doug Crow and Don McKenzie, said the amount was at least “reasonable in regard to their inadequate professional indemnity insurance cover”.

“Given that the trustee will also be taking action against these parties, it is felt that the settlement is probably as good a result as could be expected,” the statement read.

“(We) hold out hope that the action being taken against the most culpable party, in our opinion (the trustee company) … will produce a substantial settlement when it goes to court in March 2017.”

Mr Crow and Mr McKenzie said investors were “entitled to be disgusted at the incompetence” of management.

“These matters should have been discovered by the trustee long before the appointment of receivers,” the statement read.

Banksia merged with Statewide in December 2008, which investigations revealed was a significant precursor to the collapse. A forensic audit found Statewide had negative assets including loans with a total loss of over $54 million.

Banksia Securities collapsed in October 2012, owing $633 million to 16,000 investors, who predominantly lived in rural areas.

 – with The Courier