According to Tower Investments chief executive Sam Stubbs, many KiwiSaver members seem to be unaware of changes to the taxation of the scheme that could have big implications for how much money they need to contribute.

This is further evidence of the need for KiwiSaver members to get financial advice; just like having the right asset allocation, getting contribution levels right is important for ensuring members actually have enough money to live on once they retire.

Why aren't members getting this advice?  Obviously for some it is a personal choice; however, many people simply can't afford the services of an Authorised Financial Adviser. 

And questions have been raised with the FMA over whether the bar has been raised too high for KiwiSaver advice, meaning KiwiSaver investors miss out.  For instance, why does helping clients pick a KiwiSaver fund require advisers to learn portfolio design?

In other regulatory news this week, the new QROPS (Qualifying Recognised Overseas Pension Schemes) regime has kicked in but it is not yet clear the full impact of the rule changes on the New Zealand QROPS market.

Non-KiwiSaver schemes are currently off the list, with a full list to be released later this month.  However, with more than 20 schemes already listed, it seems QROPS providers are embracing KiwiSaver, which has been exempted from the new regulations.

Also this week, former Bridgecorp director Gary Urwin was sentenced to two years in jail after pleading guilty to 10 Securities Act charges brought by the Financial Markets Authority.  This shows Urwin's more intimate role in the offending than that of former Bridgecorp chairman Bruce Davidson, who was given home detention. 

It also adds intrigue to the impending sentencing of Rod Petricevic and Robert Roest, who were convicted on Crimes Act as well as the same Securities Act charges for misleading investors.  Fellow director Peter Steigrad will be sentenced at the same time.

In insurance news, Asteron is set to adopt a new, broader definition of a heart attack in a change the company said could result in a 30%-50% increase in the number of claims paid out in relation to heart attacks.

Already comments on the story have raised concerns about the move increasing insurance costs, but as the company says, it is hard to explain to people who have had a heart attack why the company won't pay out. 

In mortgage news, Australian non-bank lender Resimac says it is unlikely to be affected by NZF Group's latest woes, other than by association.

Resimac, which bought 80% of NZF Group's subsidiary, NZF Homeloans, late last year, has acted in what appears to be an attempt to protect its brand by renaming the subsidairy Resimac Financial Securities.  It is understandable it doesn't want to be tarnished by the legal drama NZF Group is embroiled in.

And finally this week, a subject that is sometimes overlooked when it comes to investment returns; currency.  Tower has predicted the New Zealand dollar will remain high, and it has also forecast the Reserve Bank will raise the OCR by the end of this year, rather than next year as many are predicting.