|
|
Sides line up over rule changes
A stoush is looming over a government proposal to reduce red tape around workplace based superannuation schemes.
Wednesday, June 25th 2003, 11:42AM
by Rob Hosking
Ranged against the proposal is the Securities Commission, and – to a lesser extent – the New Zealand Law Society.
In favour of the government’s proposal is a coalition of the Association of Superannuation Funds of New Zealand (ASFONZ), Business New Zealand, the Council of Trade Unions, the Investment Savings and Insurance Association, and the Retirement Commissioner.
The proposals, contained in the recently introduced Business Law Reform Bill, would cut out the requirement for employer based superannuation schemes to issue a prospectus.
Most of the information contained in these prospectuses is provided elsewhere, says ASFONZ chairman Mike Woodbury.
And requests for copies of prospectuses is almost nil, according to formal and informal surveys of ASFONZ members.
“The prospectus is only read by the signatories, the advisers, and a very junior official in the Companies Office. After that it becomes a dust collector.
“There’s the odd request from solicitors seeking them for due diligence purposes. One scheme had only had one request, and that was from a member who happened to be a member of the Securities Commission.”
The Commission’s advice on the proposed law change suggests that the costs of issuing prospectuses has been exaggerated.
After the initial set up, “the prospectus does not need to be an expensive glossy document. It need only be available on request, and can be incorporated in an annual report or published electronically, we are not aware of how many scheme trustees have taken these opportunities to save costs.”
That does not take into account the ongoing administration costs, says Woodbury.
“We’re still collecting the data but the direct costs are typically between $5,000-10,000 a year. The costs of trustee and employer time are additional to that. When you add the legal costs, it all adds up to a powerful disincentive for employers to get into this area.”
The Commission argues that the prospectus puts useful discipline on trustees and directors, as some employer schemes “can be particularly vulnerable to mismanagement.”
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
Commenting is closed
|
|
News Bites
Latest Comments
Subscribe Now
News and information about KiwiSaver
Previous News
-
Tuesday, April 16th, 10:42AM
Best and worst KiwiSavers according to Consumer
-
Wednesday, April 3rd, 5:11AM
Gender pay gap and not contribution rates disadvantage women on KiwiSaver
-
Wednesday, March 27th, 9:03AM
Bayly will talk to coalition partners before any change to KiwiSaver
-
Tuesday, March 26th, 6:40AM
Simplicity takes stake in tax tech company
-
Wednesday, March 6th, 6:00AM
Kiwis, depending on their age group, generally want compulsory KiwiSaver
-
Thursday, February 29th, 6:58AM
KiwiSaver portability settings blocking investors from private asset benefits
-
Wednesday, February 14th, 12:51PM
KiwiSaver reaches $104 billion
-
Friday, February 9th, 9:18AM
Generate cracks $5 bill mark
MORE NEWS»
Most Commented On
Mortgage Rates Table
Full Rates Table | Compare Rates
Lender |
Flt |
1yr |
2yr |
3yr |
AIA - Back My Build |
6.19 |
- |
- |
- |
AIA - Go Home Loans |
8.74 |
7.24 |
6.75 |
6.65 |
ANZ |
8.64 |
7.84 |
7.39 |
7.25 |
ANZ Blueprint to Build |
7.39 |
- |
- |
- |
ANZ Good Energy |
- |
- |
- |
1.00 |
ANZ Special |
- |
7.24 |
6.79 |
6.65 |
ASB Bank |
8.64 |
7.24 |
6.75 |
6.65 |
ASB Better Homes Top Up |
- |
- |
- |
1.00 |
Avanti Finance |
9.15 |
- |
- |
- |
Basecorp Finance |
9.60 |
- |
- |
- |
Bluestone |
9.24 |
- |
- |
- |
Lender |
Flt |
1yr |
2yr |
3yr |
BNZ - Classic |
- |
7.24 |
6.79 |
6.65 |
BNZ - Green Home Loan top-ups |
- |
- |
- |
1.00 |
BNZ - Mortgage One |
8.69 |
- |
- |
- |
BNZ - Rapid Repay |
8.69 |
- |
- |
- |
BNZ - Std, FlyBuys |
8.69 |
7.84 |
7.39 |
7.25 |
BNZ - TotalMoney |
8.69 |
- |
- |
- |
CFML Loans |
9.45 |
- |
- |
- |
China Construction Bank |
- |
7.09 |
6.75 |
6.49 |
China Construction Bank Special |
- |
- |
- |
- |
Co-operative Bank - First Home Special |
- |
7.04 |
- |
- |
Co-operative Bank - Owner Occ |
8.40 |
7.24 |
6.79 |
6.65 |
Lender |
Flt |
1yr |
2yr |
3yr |
Co-operative Bank - Standard |
8.40 |
7.74 |
7.29 |
7.15 |
Credit Union Auckland |
7.70 |
- |
- |
- |
First Credit Union Special |
- |
7.45 |
7.35 |
- |
First Credit Union Standard |
8.50 |
7.99 |
7.85 |
- |
Heartland Bank - Online |
7.99 |
▲6.89 |
▲6.55 |
▲6.35 |
Heartland Bank - Reverse Mortgage |
- |
- |
- |
- |
Heretaunga Building Society |
8.90 |
7.60 |
7.40 |
- |
HSBC Premier |
8.59 |
- |
- |
- |
HSBC Premier LVR > 80% |
- |
- |
- |
- |
HSBC Special |
- |
- |
- |
- |
ICBC |
7.85 |
7.05 |
6.75 |
6.59 |
Lender |
Flt |
1yr |
2yr |
3yr |
Kainga Ora |
8.64 |
7.79 |
7.39 |
7.25 |
Kainga Ora - First Home Buyer Special |
- |
- |
- |
- |
Kiwibank |
8.50 |
8.25 |
7.79 |
7.55 |
Kiwibank - Offset |
8.50 |
- |
- |
- |
Kiwibank Special |
- |
7.25 |
6.79 |
6.65 |
Liberty |
8.59 |
8.69 |
8.79 |
8.94 |
Nelson Building Society |
9.00 |
7.75 |
7.35 |
- |
Pepper Money Advantage |
10.49 |
- |
- |
- |
Pepper Money Easy |
8.69 |
- |
- |
- |
Pepper Money Essential |
8.29 |
- |
- |
- |
Resimac - LVR < 80% |
8.84 |
8.09 |
7.59 |
7.29 |
Lender |
Flt |
1yr |
2yr |
3yr |
Resimac - LVR < 90% |
9.84 |
9.09 |
8.59 |
8.29 |
Resimac - Specialist Clear (Alt Doc) |
- |
- |
8.99 |
- |
Resimac - Specialist Clear (Full Doc) |
- |
- |
9.49 |
- |
SBS Bank |
8.74 |
7.84 |
▼7.29 |
▼6.59 |
SBS Bank Special |
- |
7.24 |
▼6.69 |
▼5.99 |
SBS Construction lending for FHB |
- |
- |
- |
- |
SBS FirstHome Combo |
6.19 |
6.74 |
- |
- |
SBS FirstHome Combo |
- |
- |
- |
- |
SBS Unwind reverse equity |
9.95 |
- |
- |
- |
Select Home Loans |
9.24 |
- |
- |
- |
TSB Bank |
9.44 |
8.04 |
7.55 |
7.45 |
Lender |
Flt |
1yr |
2yr |
3yr |
TSB Special |
8.64 |
7.24 |
6.75 |
6.65 |
Unity |
8.64 |
6.99 |
6.79 |
- |
Unity First Home Buyer special |
- |
- |
6.45 |
- |
Wairarapa Building Society |
8.60 |
6.95 |
6.85 |
- |
Westpac |
8.64 |
7.89 |
7.35 |
7.25 |
Westpac Choices Everyday |
8.74 |
- |
- |
- |
Westpac Offset |
8.64 |
- |
- |
- |
Westpac Special |
- |
7.29 |
6.75 |
6.65 |
Median |
8.64 |
7.29 |
7.29 |
6.65 |
Last updated: 24 April 2024 9:24am |
|
|