The Financial Services Council welcomes the opportunity to engage with the KiwiFund Bill and the issues it raises, but questions whether the measures in the Bill are needed.

“KiwiSaver providers operate in a competitive marketplace, are well-regulated and of a high standard. Consequently, they enjoy a high level of both public and regulator confidence,” said Richard Klipin, CEO of the Financial Services Council.

“There is already real transparency when it comes to fees and with the range of providers now in the market, the public have options across the spectrum from low fee passive funds to higher fee actively managed funds.

“The fee debate is an important one to have. However the fee discussion in the absence of value is only considering half the issue and does not give the full picture.

“KiwiSaver has just entered its second decade and is beginning to mature and have New Zealanders starting to properly engage with it. The last thing it needs now is more political tinkering and another working group.

“Instead we think industry and government resources would be better focused on improving New Zealanders understanding of KiwiSaver, and to build on the range of advice and resources that are already available.

“However, if the Bill does pass we look forward to participating in the working group and constructively addressing the issues raised in the Bill.

“The FSC’s members take their responsibilities as KiwiSaver providers very seriously and we are always striving to improve the service we provide to New Zealanders.

“We therefore look forward to engaging in the debate about how best to do this as the Bill progresses, and demonstrating how the sector is working to deliver a world-class savings scheme”, Mr Klipin concluded.

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