Advisers' concern at bank bundling

One adviser, who did not want to be named, said he lost the KiwiSaver account of a long-standing client when he was offered $1500 towards his mortgage if he brought a new product to TSB, which offers Fisher Fund KiwiSaver.

“This wasn't a written offer or condition of getting the mortgage but he was given the money once he'd signed it across,” the adviser said.

“He obviously felt pressured as he apologised to me, but I agreed he was best to do it, as in the short term it is an obvious decision. Because it’s not a wise move for him longer term, we're going to bring him back and - to cover ourselves - now need give the appropriate documented advice to do so.”

TSB chief executive Kevin Murphy said he was not aware of an incentive being tied to KiwiSaver, although the bank does offer cash incentives up to $1500 for new mortgages.