FMA warns against KiwiSaver fee double-dipping

The FMA has released a new draft guidance note on KiwiSaver performance fees, which it polices to make sure the fees charged are "not unreasonable."

Recently the regulator has received an "increasing number of enquiries regarding the reasonableness of performance-based fees."

It said performance fees need to be assessed on a case-by-case basis, and in its assessment the FMA will be guided by the principle that "it is reasonable to offer fair reward for the application of investment manager skill.

However, "Investors should not pay twice for the same return," the FMA said in the note.