KiwiSaver providers miss the deadline
The Financial Markets Authority is weighing its options after a handful of KiwiSaver providers missed their annual reporting deadline.
Monday, October 3rd 2011, 7:28AM 
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by Niko Kloeten
KiwiSaver providers who report for the year to March had to file their annual reports by last week but despite having nearly six months to prepare, some didn't make it on time.
Elaine Campbell, head of compliance monitoring at the FMA, said that of 44 KiwiSaver schemes with March 31 balance dates, five did not meet the 28 September reporting deadline.
"Of these, we are told two are in the post. The other three are from a single provider, which is keeping FMA informed regarding its reporting progress.
"The provider has experienced delays in producing financial statements that show the segregated nature of the investment funds within each scheme it manages."
Although the FMA did not divulge the identity of the provider having problems with its financial reporting, Good Returns understands the main retail manager to miss the deadline is Aon.
"FMA will treat each case on its merits," Campbell said. "In the event of a serious breach of an issuer's reporting responsibilities, the first step would be to investigate under the FMA Act to identify the issue.
"Consideration could then be given to charges under the Kiwisaver Act, which sets out the penalties for an issuer failing to meet its reporting obligations."
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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Comments from our readers
Shouldn't the liability to report be a strict liability i.e. there are no merits that should ever be taken into account; miss the deadline means you are off the market. Or is the perpetrator "too big or too important to fail?"
Very selective our regulators...the stench is overwhelming. I note that Sean Hughes says the FMA is keen to clear the "stench" created by the collapse of the finance company sector. The collapse couldn't have been due to poor regualtion could it? No of course not. It was just the advisers.
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I'm unsure why the FMA is "considering" options, when the obvious choice is to close non complying Kiwisaver providers immediately, and redirect the funds to a default provider.