FMA: Dangers of economic uncertainty in a post-covid world

Liam Mason, director of regulation at the FMA, delivered good news and bad news to the Financial Markets Law conference attendees assembled yesterday at the Aotea Centre. The good news, according to FMA reporting the “markets have recovered with astounding optimism.” The bad news, quite a bit else.

Mason presented the data that the FMA had collected over the covid period and been analysing in the months since. 

Firstly, Mason ran through the KiwiSaver fund switching numbers. Not surprising was the previously touted 254,000 switched during the April-March period up 54% on the previous year. Over 1.6 Billion dollars were moved into conservative funds.

But what Mason said was “a real concern to the FMA” was that 33,000 people switched twice, 7000 switched three times, 3000 switched four times and 2500 switched five times.