Group of AFAs tackles KiwiSaver problems
The group wants changes to the way default KiwiSaver schemes operate and has written to the Financial Markets Authority chief executive, Reserve Bank governor, Commerce Minister Kris Faafoi and Finance Minister Grant Robertson.
It is made up of John Cliffe, Phil Ison, Alistair Bean, Rachelle Bland, Michael Lay, John McLean, John Milner, Tony Walker and John Wood.
The advisers want all default funds to be balanced options, to ensure IRD gives default managers the correct tax rates for members, to remove all members in a default fund after 12 months by switching them out, and to introduce a white-labelled government balanced fund for those members.
New default member flows should be stopped to any default provider that did not meet specific engagement and switch-out rates for members and the white-labelled fund should be told to minimise investments in Australian-owned bank securities, the group said.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
