KiwiSaver is arguably one of biggest savings initiatives to hit New Zealand for decades. It impacts nearly every worker and will be massive in size involving all parts of the industry.
Fund managers and superannuation administrators are busy working out how it fits in with their businesses and no doubt lawyers and other professional groups are heavily engaged.
The one part of the puzzle that is missing though is how do financial advisers fit into the picture?
As Good Returns has reported a number of times it is acknowledged they should have a part in KiwiSaver. However as FPIA acting chief executive Ross Butler acknowledged at the annual Super Summit in Wellington advisers do not have a role in KiwiSaver.
However the association's position on KiwiSaver is that it wants it delayed until tax changes are sorted.
We would like to provide more detail on the submission, but technically it is a breach of Parliamentary privilege to publish submissions on Bills before they are released by the Select Committee. (and, to be honest, there isn't much more detail anyway).
Being good, law abiding citizens who respect the Parliamentary process - not like some other media - we won't publish the FPIA's submission until it is released by the Select Committee.
But to suggest KiwiSaver should be deferred until tax changes are sorted is, in my view, a little naïve.
The government has made it clear KiwiSaver is happening on April 1, come hell or high water. They have even gone so far as to tell the select committee few changes can be made at that level, because the timetable is so tight.
My view is that KiwiSaver is a key plank in the government's next re-election campaign. KiwiSaver just won't be put back. It is politically naive to suggest this is an option.
Advisers should be lobbying the Select Committee to make changes to get advisers included in the system. For instance it could be mandatory that every employee gets some level of advice to help them select a suitable savings scheme, and this should be funded by the government.
KiwiSaver is arguably one of biggest savings initiatives to hit New Zealand for decades. It impacts nearly every worker and will be massive in size involving all parts of the industry.