Same regime needed for all KiwiSaver trustees
Trustees respond to teh government's comments over their role in supervising KiwiSaver schemes.
Friday, March 12th 2010, 12:38PM
"It's important that trustees are fit for purpose, professional and independent", Trustee Corporations Association chairman Clynton Hardy says.
"The bottom line is that close to $5 billion, and rising, is invested in KiwiSaver schemes.
"A KiwiSaver trustee's job is no different from any other corporate trustee role. They are there to supervise fund managers and make sure investors are protected, bearing in mind the long term nature of KiwiSaver schemes.
"KiwiSaver funds are just like public money invested in debentures, bonds, retirement village homes, managed funds or other kinds of non-bank deposits. So they should be subject to the same protection and rules", he said.
The Securities Trustees and Statutory Supervisors Bill is due for its first reading in Parliament shortly. It creates much stronger regulatory oversight of corporate trustees.
"There will be much tougher hurdles to become a trustee, and once you have been given a licence to operate, higher standards of accountability.
"Making all the KiwiSaver trustees subject to this same regime would give everyone in a scheme more confidence", Hardy said.
This is an edited version of a TCA press release
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