Radio New Zealand - Te Reo Irirangi o Aotearoa

Huljich tells investors of KiwiSaver switch rights

Updated at 5:21 pm on 10 March 2010

Fund manager Huljich Wealth Management is contacting its 70,000 KiwiSaver investors, advising them of their right to move to a different fund.

Regulators are investigating the fund following the resignation of its managing director Peter Huljich after revelations he made a personal contribution to the underperforming fund.

Commerce Minister Simon Power says the case was among the factors in his decision to fast-track work to improve the disclosure and reporting regime for KiwiSaver schemes.

Huljich Wealth Management chairman Don Brash says there's concern investors were misled, and they'll be informed of their right to change funds.

"We are in fact about to send a letter to all our members making it clear that they have an absolute right to leave the KiwiSaver scheme, and that they do that without penalty," he says.

"We're making it very clear that if they feel misled or disadvantaged in some way they can leave."

Financial advisor Martin Hawes says the Huljich scheme is high risk, but many investors wouldn't understand this.

Trustee role crucial

The publisher of Good Returns, Philip Macalister, says tighter regulation is a step in the right direction, but wouldn't have stopped the reporting problems at Huljich.

However, he says the penalties could be increased if someone were found to be doing something inappropriate.

The Government needs to focus on making sure trustees do a better job than they have been doing, he says.

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