FMA tightens KiwiSaver monitoring

Last updated 12:05 23/11/2012

Relevant offers


Receivers to close seven NZ Pumpkin Patch stores, 57 job losses Real estate agents put too much pressure on, Kiwis say How to make your Lotto windfall last Canines are top-dogs when it comes to household spending on pets Kiwis lavish $800 million a year on dogs - but can we afford it? 'Unaffordable' Auckland forces teacher out Auckland Council warns of credit card scam after woman falls victim Vanguard to release tobacco and bomb-free funds for KiwiSaver Lotto winner complains to tribunal over real estate deal gone sour Insurers back down from rigid sum insured policies

In a move aimed at giving KiwiSavers more protection, the Financial Markets Authority is tightening its oversight of KiwiSaver providers by randomly monitoring the marketing materials they use to promote their retirement funds.

The regulatory watchdog will write to selected managers to request copies of their investment statements and objectives to monitor compliance with reporting laws.

Specifically, the FMA is looking to check the material steers retirement savers into the appropriate risk profile, fees are clearly disclosed, the consistency between mandate and offer documents, and the correct accounting standards have been applied.

The increased scrutiny comes ahead of changes to the way providers have to report on the performance of their funds. Under the new rules, which come into effect in April, providers will be required to produce quarterly and annual performance statements in a standardised format.

That should make it easier for the average person to make performance comparisons between providers, something that has been difficult to do on an apples-for-apples basis due to the providers disclosing different information.

The FMA also said it is also undertaking separate work into how providers manage funds and if these funds are invested in a manner that matches the scheme's risk profile.

Additionally it will consider KiwiSaver trustee oversight, the registration and administration of schemes, and overall monitoring and compliance.

Ad Feedback

- BusinessDay

Special offers

Featured Promotions

Sponsored Content