Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


FMA releases KiwiSaver performance fees guidance note

Description: FMA logo

News release

25 May 2012

FMA releases KiwiSaver performance fees guidance note

The Financial Markets Authority (FMA) has today released a final version of its guidance note on KiwiSaver performance fees.

The guidance sets out the criteria against which FMA will assess the reasonableness of performance fees, which are fees charged to an investor when an investment manager outperforms an appropriate benchmark.

FMA Head of Compliance Monitoring, Elaine Campbell said, “While only two KiwiSaver providers currently charge performance fees, it was important to clarify how FMA would assess performance fees and the elements that should apply in any such fee arrangement.”

“The guidance makes it clearer for everyone about the balance between how managers and investors are rewarded for the risks taken.”

The guidance was first issued in draft form in November. 13 submissions were received with most supporting the overall objectives and principles.

Changes were made to clarify the status of the guidance note and to emphasise performance fees are only appropriate in certain, limited circumstances for example, actively-managed growth funds. FMA also clarified the performance fee elements expected to be present and added information on the disclosure of performance fees.

“FMA will continue to work with providers seeking to amend or introduce performance fees,” said Elaine Campbell.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Talking Up The Economy: NZD Gains On PM's Mistaken GDP Comment

Her comments were downplayed by her chief press secretary who said she was referring the government's June year financial statements and had "made a mistake." More>>


Oxfam: Drug Companies Cheating Countries Out Of Billions In Tax

Oxfam’s analysis suggests these four companies are shifting profits out of countries where they do their business and into tax havens that charge little or no tax. More>>

Off The Lam: 50 Lambs Reported Lost, Found

The sheep had escaped and merged with another farmer’s flock. The combined flocks had been moved to another property before the farmer realised the missing sheep were included. More>>

Rotting Poles: Commission To File Proceedings Against Aurora Energy

The Commerce Commission has decided to file court proceedings against Dunedin-based electricity lines company Aurora Energy for breaching its regulated quality standards in 2016 and 2017. More>>


Gordon Campbell: On The Rising Cost Of Petrol

As petrol gets more and more expensive, Auckland motorists have several things to blame for it – the slumping value of the Kiwi dollar, Donald Trump’s sanctions on Iranian oil, hurricanes in the Caribbean… But it is simpler and feels better to lay all the blame on the regional fuel tax. More>>