Advisers pan KiwiSaver settings
Rachelle Bland and John Cliffe made a submission to the Government’s review of the default KiwiSaver scheme.
They said default KiwiSaver providers had generally failed to meet their contractual obligations to move clients out of “temporary” default funds.
“This is because many are deeply conflicted, particularly the Australian-owned banks, which are some of the biggest default funds. Our analysis of their default fund portfolios in July 2018 showed oligopoly behaviour with significant placement of funds in bank term deposits. There has been no set performance standard.”
Bland and Cliffe said the review needed to set specific performance standards for providers shifting members out of default funds.
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