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Axed KiwiSaver funds haven't done a good job

Booster's Allan Yeo.
Saturday 15th of May 2021

Yeo is relieved the business retained its default provider status and says it's due to the work it has done engaging with members.

He notes the schemes to lose their default status are all ones which were originally appointed when KiwiSaver started, and it seems they have not done enough to get members out of default status.

While he doesn't go as far as saying they are being punished, he does say "others have done a better job".

He says the recent tender process for default status shows those managers have not done a good job at getting members to make active choices. He also questions how much money these default members have lost by not being in a fund which is appropriate with their risk profile.

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2 days ago Jon-Paul Hale
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
2 days ago Paul Flood
FMA outlines its latest expectations for advisers
The goalposts haven't shifted, and no-one is moving the hole to the side of the green just to mess with the twilight burglars. The phrasing of the opening sentence ("having policies, templates, and controls in place is no longer enough") might suggest otherwise, but the wording is unfortunate. Having policies, templates, and controls in place was NEVER enough - it is a necessary, but not sufficient, condition of "playing by the rules" since 15th March 2021. A new player to golf might completely miss the ball on their tee shot - a swing and a miss. The wise coach/mentor/official knows that adding a stroke to the scorecard at this early stage of the player's development could have a deleterious effect. A reminder of the rule and the sanction - not applied at this early stage of development - is more conductive to continued participation. Focus on learning to hit the ball in the first instance, and move on to applying the penalty once the basics are firmly bedded in. No rule change, just a firmer application of the existing rules as the golfer matures.
2 days ago Paul Flood
FMA outlines its latest expectations for advisers
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