Radio New Zealand - Te Reo Irirangi o Aotearoa

Securities Commission reminds KiwiSaver managers to behave

Updated at 10:32 pm on 11 March 2010

The Securities Commission will issue guidance to all KiwiSaver fund managers this week, reminding them of their ethical and behavioural duties to the public.

Speaking at the New Zealand Australia Investment forum in Auckland, the commission's chair, Jane Diplock, says the guidance will set out the regulator's expectations of fund managers, and in particular, how they disclose investment information to the public.

The commission is investigating KiwiSaver fund manager Hujilich Wealth Management, after its founder was discovered to have fudged investment returns by personally topping up funds that had not done well.

The case prompted the government to fast track moves to tighten regulation of the KiwSaver industry.

The commission would not elaborate on the details of the guidance ahead of its release, but Mrs Diplock says it will clarify the behaviour that is expected of fund managers.

She says there have been problems with KiwiSaver being sold door-to-door, and questions over the way returns have been suggested to invested.

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