The Financial Markets Authority - Te Mana Tātai Hokohoko (FMA) notes the Government’s announcement today regarding new
KiwiSaver default provider arrangements, these include new settings that offer a package of benefits for default
Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister David Clark have revealed the appointment of
BNZ, Booster, BT Funds (Westpac), KiwiWealth, Simplicity and Smartshares (NZX) as default providers for the next seven
years, noting they were selected for offering the best value for money for investors.
Rob Everett, FMA Chief Executive, said value for money and fees had been a sharp focus of the regulator’s oversight of
KiwiSaver for some time.
“The new default provider settings offer a range of benefits to default investors, including improved outcomes from a
balanced fund, lower fees, and services. There is also an obligation to exclude fossil fuel production and illegal
weapons from the default funds. Altogether, this is a fair representation of value for money for existing and new
default members, sending a strong signal to the market,” he said.
“We will be working closely with Supervisors of current and new default managers to ensure a smooth and robust
transition process for affected members and their balances. We’ll continue to monitor the current default providers to
ensure they act in the best interests of members through the transition.”
The default provider selection process was undertaken by the Ministry of Business, Innovation and Employment (MBIE) and
the changes will come into effect on 1 December 2021. The FMA’s primary role in KiwiSaver is to license, monitor and
supervise all KiwiSaver providers, including default providers, and their Supervisors.