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FMA outlines fee methodology

Thursday, June 8th 2017, 7:50PM

The FMA says KiwiSaver providers should be disclosing fees using the investor’s balance at the date the units of the fund are valued, or the cents per unit (CPU) method.

Providers are now required to report to clients on the fees they pay in dollars, not just percentage terms.

The FMA had initially suggested the calculation could be based on the investor’s average balance or the total annual fund charge (TAFC) method. This was to enable the introduction of fees in dollar values for individual KiwiSaver annual statements by March 2018.

However, some market participants responded to the consultation and said they wanted to use the investor’s balance at the date the units of the funds are valued (CPU). This is a more accurate method, but can be more complicated to achieve.

The FMA said it would adopt CPU as its preferred method but would also allow calculation of the dollar value using the TAFC method. KiwiSaver providers were also strongly encouraged to disclose total fees as a percentage of the KiwiSaver members balance as well as fees in dollar terms.

Tags: KiwiSaver

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Latest Comments
  • FMA finds room for improvement
    “Brent - I suspect you're not alone. I've heard of similar experiences and agree with the call to action....”
    8 hours ago by dcwhyte
  • FMA finds room for improvement
    “Hi David No I didn’t bother alerting the FMA re the performance data because, from memory, I had previously alerted...”
    12 hours ago by Brent Sheather
  • FMA finds room for improvement
    “Agree with Brent's comments - and would ask if the performance data cited has been forwarded to the FMA for action? With...”
    13 hours ago by dcwhyte
  • FMA finds room for improvement
    “Very strange that “consumers still feel they aren’t being told the full story about fees” yet the FMA and the CFFC...”
    15 hours ago by Brent Sheather
  • FMA overstepping bounds: Weatherston
    “I was under the impression that the FMA was the primary regulator and enforcer of the law, not the law maker themselves....”
    1 day ago by Pragmatic
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ANZ 5.79 5.05 5.35 5.59
ANZ Special - 4.55 4.85 -
ASB Bank 5.80 4.85 5.14 5.49
ASB Bank Special - 4.45 4.74 5.09
BankDirect 5.80 4.85 5.14 5.49
BankDirect Special - 4.45 4.74 5.09
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.59 4.79 5.09
BNZ - Std, FlyBuys 5.90 4.99 5.29 5.59
BNZ - TotalMoney 5.90 - - -
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Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 5.45 5.50 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 5.00 5.20 -
Housing NZ Corp 5.79 4.85 5.14 5.49
HSBC Premier 5.79 4.09 4.29 4.89
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.70 4.59 4.69 5.09
Kiwibank 5.70 4.95 5.29 5.75
Kiwibank - Capped - - - -
Kiwibank - Offset 5.70 - - -
Kiwibank Special - 4.45 4.79 5.25
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.00 4.86 4.75 5.30
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SBS Bank 5.79 4.99 5.29 5.59
SBS Bank Special - 4.59 4.85 5.25
Sovereign 5.90 4.85 5.24 5.49
Sovereign Special - 4.45 4.84 5.09
The Co-operative Bank - Owner Occ 5.75 4.59 4.85 5.25
The Co-operative Bank - Standard 5.75 5.09 5.35 5.75
TSB Bank 5.80 4.80 5.15 5.45
TSB Special - 4.55 4.49 5.15
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.95 4.99 5.29 5.59
Westpac - Capped rates - 5.26 5.36 -
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Westpac - Offset 5.95 - - -
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Median 5.80 4.85 5.14 5.38

Last updated: 7 July 2017 9:26am

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