FMA tightens KiwiSaver monitoring

JASON KRUPP
Last updated 12:05 23/11/2012

Relevant offers

National business

Waikato software developer fraudster pleads guilty to theft, deception charges We love Kiwi-owned banks, Consumer NZ survey shows More nostalgia as Whittaker's launches toffee milk chocolate bars Another four-day weekend: How to pull off a sickie Farmers feel dairying presented unjustly in TV programme New social housing project located in rural Wairarapa idyll Could the iconic N-Zeta scooter return with electric power? Health insurers call for action on skyrocketing health costs Mike Yardley: New Zealand's immigration settings suppressing pay rates Guest rankings drive hotel bookings

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