A group of financial advisers are calling on the Financial Markets Authority and the Reserve Bank to regulate providers of default KiwiSaver funds
A group of financial advisers are calling on the Financial Markets Authority and the Reserve Bank to regulate providers of default KiwiSaver funds
17 July 2018
They say over the last six years, savers have missed out on about a billion dollars and unnecessarily paid around 70 million in taxes, because KiwiSavers' funds were left to languish in low-yielding default plans.
Group spokesperson John Cliffe says 400 thousand KiwiSavers automatically assigned to conservative funds had lost out.
He says around 35 percent of the 4.6 billion in default funds were invested in big Australian banks ASB, ANZ, BNZ, Westpac and insurer AMP.
Cliffe says they have a conflict of interest - as it suits them to have default funds in conservative funds because of the level of self-investment between the banks.
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