8 Sep 2016

No evidence of KiwiSaver offending, police say

2:33 pm on 8 September 2016

Police will not take any action against KiwiSaver providers who invest in manufacturers of banned weapons, saying there is no evidence of offending.

A UN expert works to dispose of landmines.

A UN expert works to dispose of landmines (file) Photo: AFP

RNZ News recently revealed all nine default KiwiSaver providers had investments, either directly or indirectly, in companies that made cluster bombs, anti-personnel mines and nuclear weapons.

All nine have announced they were reviewing or ditching the investments.

Amnesty International filed a complaint with the police over fund managers investing in companies making these weapons.

Police said staff working in consultation with the Financial Markets Authority had completed assessing whether the managers had broken the law, and they had found no evidence to indicate any offending.

Fund managers generally bought their securities on traded markets, so these were shares traded between shareholders as opposed to providing funds to the companies that produced these weapons, the police said.

New Zealand fund managers also placed money with offshore fund managers, who might undertake share trading on overseas markets, rather than investing directly, they added.

If any new evidence came to light, this would be assessed and acted on as required.

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