The issue of banks selling practice around KiwiSaver and how bank staff get customers to switch schemes has been a hot topic amongst advisers for some time. It was one of the reasons the FMA created a Guidance Note on KiwiSaver sales practices several years ago.

FMA head of supervision Kirsty Campbell told the Workplace Savings conference in Auckland that there had been an increase in complaints, and some of these had come from competitors. She said the regulator was looking at the issue and considering doing some research such as mystery shopping banks, surveys and talking to customers.

"We're probably going to do a little bit of all that stuff," she said.

Campbell said if the FMA could find "evidence of potential harm occurring" then “yes that is something we will take action over."

She said advisers and financial institutions have to "put your customer first."

Campbell said there had been stories where people switched providers without knowing it after being told they could see their KiwiSaver balance on their bank statement.

“We don’t want to see the do you want fries with that mentality.”

Campbell says the FMA is worried about KiwiSaver as it is a mass market product, and is the way many people "first time dip toes into the financial markets water."

"We want to make sure they get a good outcome," she said.