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Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Scheme participant transfer rules for KiwiSaver, superannuation, and workplace savings schemes

179: Methods of transfer of scheme participants to another scheme or another section of scheme

You could also call this:

"Transferring your savings to a different scheme must follow these rules to keep you safe"

Illustration for Financial Markets Conduct Act 2013

You can only be transferred from one savings scheme to another if it follows the rules in this section. You need written consent to be transferred, which must be obtained in accordance with section 180, if that section applies, or the transfer can happen with the FMA's consent under section 181. The transfer can also happen in accordance with regulations made under section 230 of the KiwiSaver Act 2006, if the old scheme is a default KiwiSaver scheme that is subject to a terminating event under section 138 of the KiwiSaver Act 2006.

The FMA may permit a transfer without your consent if they are satisfied the manager of the old scheme tried to contact you but could not, and the transfer is not unreasonable for you. You cannot be transferred from a KiwiSaver scheme to a scheme that is not a KiwiSaver scheme under this section. The rules for transferring schemes are in place to protect your interests and ensure that any transfer is done fairly and with your consent, or with the FMA's consent if necessary.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091184.

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178: Application of scheme participant transfer rules, or

"Rules for switching KiwiSaver schemes"

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"Moving lots of people to a new savings scheme: what you need to know"

Part 4Governance of financial products
Governance of managed investment products: Scheme participant transfer rules for KiwiSaver, superannuation, and workplace savings schemes

179Methods of transfer of scheme participants to another scheme or another section of scheme

  1. No scheme participant may be transferred from one registered scheme to another registered scheme, or to another section of the same scheme, except in accordance with this section.

  2. A scheme participant may be transferred—

  3. with the scheme participant's written consent (which must be obtained in accordance with section 180, if that section applies), if authorised by a governing document; or
    1. in accordance with the FMA's consent under section 181 (despite anything to the contrary in the governing document); or
      1. in accordance with regulations made under section 230 of the KiwiSaver Act 2006 (despite anything to the contrary in the governing document), if the old scheme is a default KiwiSaver scheme that is subject to a terminating event under section 138 of the KiwiSaver Act 2006.

        1. However, the FMA may permit a transfer to occur under subsection (2)(a) without the scheme participant's consent if the FMA is satisfied that—

        2. the manager of the old scheme has taken all reasonable steps to contact all of the relevant scheme participants, but has not been able to do so; and
          1. the proposed action is not unreasonable in relation to the best interests of any of those scheme participants who have not been contacted.

            1. No scheme participant may be transferred from a KiwiSaver scheme into another scheme that is not a KiwiSaver scheme under this section.

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