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Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Registration

128: Additional initial and ongoing registration requirements for KiwiSaver schemes

You could also call this:

"Extra rules for KiwiSaver schemes to follow when registering and operating in New Zealand"

Illustration for Financial Markets Conduct Act 2013

To register a KiwiSaver scheme, you must meet some extra requirements. You can find the main requirements in section 127. The scheme must be a trust that follows New Zealand law.

The scheme's purpose is to provide retirement benefits to individuals. It must follow the KiwiSaver scheme rules under the KiwiSaver Act 2006. The scheme can only have members who meet certain New Zealand criteria.

You meet the New Zealand criteria if you live in New Zealand or are a New Zealand citizen. You also meet the criteria if you are entitled to be in New Zealand indefinitely, as stated in the Immigration Act 2009. Some employees of the State services also meet the criteria, as defined in the Public Service Act 2020.

The scheme must allocate contributions to each member individually. The benefits provided by the scheme must be fully funded as they accrue. The scheme's manager must have at least one director who is a New Zealand resident for tax purposes. The manager must also have a scheme provider agreement with the Commissioner of Inland Revenue, as required by the KiwiSaver Act 2006. The fees charged by the scheme must comply with clause 2 of the KiwiSaver scheme rules.

You can also meet the New Zealand criteria if you are transferring your entitlements from another KiwiSaver scheme. If the KiwiSaver scheme is restricted, it has some different requirements. At least one of the trustees or directors of the corporate trustee must be a New Zealand resident for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091113.

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127: Initial and ongoing registration requirements for all managed investment schemes, or

"Rules for registering and running a managed investment scheme in New Zealand"

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129: Additional initial and ongoing registration requirements for superannuation schemes, or

"Extra rules for registering a superannuation scheme to help people save for retirement"

Part 4Governance of financial products
Governance of managed investment products: Registration

128Additional initial and ongoing registration requirements for KiwiSaver schemes

  1. Every KiwiSaver scheme must meet the following registration requirements in addition to those in section 127:

  2. it must be a trust established and governed by a trust deed that is interpreted and administered in accordance with New Zealand law; and
    1. its purpose must be to provide retirement benefits directly to individuals; and
      1. it must, accordingly, restrict redemptions, withdrawals, and the provision of benefits in respect of a member's accumulation (including in the way the trust deed is applied) to those permitted under the KiwiSaver scheme rules under the KiwiSaver Act 2006; and
        1. it must admit as members (both in its conditions of entry of scheme participants and in the way those conditions are applied on entry) only persons who meet the New Zealand criteria set out in subsection (2) or (3); and
          1. it must be a scheme under which contributions are allocated to scheme participants on an individual basis; and
            1. the benefits provided by the scheme must be fully funded as they accrue; and
              1. its manager must have at least 1 director who is a New Zealand resident for tax purposes; and
                1. its manager must be a party to a scheme provider agreement with the Commissioner of Inland Revenue (if required by regulations made under the KiwiSaver Act 2006); and
                  1. the FMA must be satisfied that the fees charged in accordance with any information provided in the application will comply with clause 2 of the KiwiSaver scheme rules under the KiwiSaver Act 2006.

                    1. The New Zealand criteria are that the person, at the time of becoming a scheme participant,—

                    2. is, or normally is, living in New Zealand, or is an employee of the State services (within the meaning of the Public Service Act 2020) who is—
                      1. serving outside New Zealand; and
                        1. employed on New Zealand terms and conditions; and
                          1. serving in a jurisdiction where offers of superannuation scheme membership are lawful; and
                          2. is a New Zealand citizen or is entitled, in terms of the Immigration Act 2009, to be in New Zealand indefinitely.

                            1. A person also meets the New Zealand criteria if the person—

                            2. is, immediately before becoming a participant of the KiwiSaver scheme (scheme A), a member of another KiwiSaver scheme (scheme B); and
                              1. is transferring the member's entitlements from scheme B to scheme A.

                                1. If the KiwiSaver scheme is a restricted scheme,—

                                2. subsection (1)(g) does not apply; but
                                  1. at least 1 of the trustees or 1 of the directors of the corporate trustee of the scheme must be a New Zealand resident for tax purposes.

                                    Compare
                                    Notes
                                    • Section 128(2)(a): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).