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Screenshot of a breaking news alert e-mail from Q2 2017
The FMA has confirmed the methodology KiwiSaver scheme providers must use when calculating the dollar amount of fees paid by KiwiSaver investors for annual statements.
The FMA wants to ensure providers are calculating fees accurately without burdening them with unnecessary costs and ensuring they have time to comply.
KiwiSaver scheme providers must allocate fees charged at the fund level to investors using one of the methods below:
- The investor’s average balance
- The investor’s balance at the date the units of the fund are valued
This will enable all providers to provide fees in dollar terms as required for annual statements to be sent to members in 2018.
FMA’s preference is for providers to use the second method, the investor’s balance at the date the units of the fund are valued. The methodology notice will be reviewed within 5 years, including a decision about whether all KiwiSaver scheme providers will be required to use the second method.
The details of the methodology and response to submissions are contained in the regulatory impact statement published here.