The deal, announced on Wednesday, seems like a good fit given the state-owned bank was looking to dramatically increase the size of its recently-launched KiwiSaver scheme and its fledgling wealth management business in general.

And with $1.5 billion under management including $650 million in its KiwiSaver scheme, GMI had reached a point at which several independent New Zealand fund managers had plateaued in the past.  And like KiwiBank, GMI has pushed its New Zealand-owned pedigree (can we now say it's been nationalised?).

However, the deal has some interesting wrinkles including the fact KiwiBank will continue to run its KiwiSaver business and operate the Gareth Morgan scheme separately (at least for now). Morgan and fellow GMI principal Andrew Gawith will also be kept on to beef up KiwiBank's investment management team.

The purchase of GMI also exposes KiwiBank's underdeveloped adviser force, particularly with regards to AFAs.  Addressing this will take some time, unless it can buy its way into a ready-made distribution network.  Let the rumours begin!

KiwiBank has been making headlines for another reason recently, after it dropped its four-year home loan rate by 80 basis points to 5.99%, well below its market rivals.  As is usually the case with these sorts of offers, there are plenty of strings attached.

The other big KiwiSaver news this week was ANZ's push for major changes to the settings for default schemes so members have their asset allocation matched up to their age.  ANZ, which owns OnePath, has warned of a $14 billion "savings time bomb" if these members are left to languish in conservative funds until retirement.

The issue will become even more pressing, and the potential lost returns even bigger, if contribution rates are increased and/or KiwiSaver is made compulsory, because many of the members brought in by compulsion will likely end up in default schemes.  

New Zealand fund managers need to step up their game on performance fees, a report by Harbour Asset Management suggests.  Investors have the potential to pay performance fees for below-market performance, it said.

Although not specifically focused on KiwiSaver, it followed recent Financial Markets Authority guidance on what it considers "reasonable" as far as performance fees for KiwiSaver funds.

The insurance industry has lost one of its pioneers, with the death of inaugural Life Brokers Association president Cyril Chaplin earlier this year. Current LBA president Noel Charles paid tribute to Chaplin, describing him as a man ahead of his time.

Meanwhile, Insurance4Me founder Des Morgan is back with a new online insurance venture offering large first year premium discounts on Sovereign and OnePath life and health cover.

Morgan said he was well aware his new venture would attract criticism from the advice community for his self-needs analysis approach, and he said he found the criticism ironic given the controversy around Partners Life taking business away from established insurers.

And finally this week, advisers have been warned that from next year they will be legally liable if they don't do enough to identify money laundering and terrorism financing by their clients.  Clients who pay with cash from a large suitcase, or those who want to invest all their money in North Korea, will attract particular suspicion.