KiwiSaver guidance could be challenged in court

The FMA’s guidance note, which takes effect in March next year, has received a mixed reaction from the industry, with the Institute of Financial Advisers supporting it and the Bankers’ Association slamming it.

But the final guidance note may not be the end of the legal debate, according to an expert on financial services law.

Chapman Tripp partner Mike Woodbury said it was possible advisers or companies could mount a legal challenge against aspects of the FMA’s interpretation of the Financial Advisers Act regarding KiwiSaver advice. 

“It’s probably not the sort of thing that would lend itself to a declaratory judgment,” he said.  “However, court guidance could be good to get the requisite certainty in one or two areas that arise.”