KiwiSaver Scheme and ARFP Regulations

New financial markets regulations have been published:

  • The Financial Markets Conduct Amendment Regulations 2019 (KiwiSaver Regulations) relate to KiwiSaver schemes and additional information for participants.
  • The Financial Markets Conduct (Asia Region Funds Passport) Regulations 2019, Financial Markets Conduct (Asia Region Funds Passport) Amendment Regulations 2019 and Financial Markets Conduct (Fees) Amendment Regulations 2019 (ARFP Regulations) deal with the Asia Region Funds Passport initiative.

The KiwiSaver Regulations can be found here, while the ARFP Regulations can be found here, here and here.

Who needs to read them?  Why?

KiwiSaver fund managers need to read and implement the KiwiSaver Regulations. The ARFP Regulations are relevant to managers who are interested in using the passport regime.

What do they cover?

The KiwiSaver Regulations amend the Financial Markets Conduct Regulations 2014 to include additional information that managers of KiwiSaver schemes must make available to scheme participants. Specifically, they will need to provide the participant’s retirement savings and income projections, as well as a statement encouraging them to consider whether their current KiwiSaver choices are the appropriate ones for them. The regulations go on to set out the form in which the information is to be provided, and the means by which it is to be calculated. Participants that are under 18, have reached 65, or have recently joined the scheme each have their own information requirements.

The ARFP Regulations give effect to the Memorandum of Cooperation on the Establishment and Implementation of the Asia Region Funds Passport with Australia, Japan, the Republic of Korea and Thailand. They allow investments in certain overseas managed investment schemes to be offered in New Zealand while being primarily regulated by their home country’s laws, with investments in equivalent New Zealand funds able to be offered in those other countries.

What next?

The KiwiSaver Regulations come into force on 13 June 2019. The ARFP Regulations come into force on 14 June 2019. If you have any questions in relation to the incoming KiwiSaver scheme obligations, or the impact of the passport regime, please contact one of our experts.

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