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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

180: Transfer of substantial numbers of scheme participants with scheme participant consent

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When a lot of people are moving from one savings scheme to another, you need to know what is happening. The people in charge of the old scheme and the new scheme must talk to their supervisors about the move and tell you about it. They have to give you notice and tell the Financial Markets Authority about the move.

The notice they give you must say what is happening and how it will affect you. It must also say when the move will happen and when you need to give your consent. You will get at least one month's notice before you have to give your consent.

If you are in a KiwiSaver scheme, the people in charge still have to follow the rules of the KiwiSaver Act 2006. Giving you notice about the move does not mean they can ignore other rules they have to follow. You will be told that the notice has also been sent to the Financial Markets Authority.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091185.

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

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

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181: Transfer with FMA consent, or

"Transferring your savings to a new scheme with the Financial Markets Authority's approval"

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

180Transfer of substantial numbers of scheme participants with scheme participant consent

  1. This section applies to a transfer (whether at the same time or over an extended period) of all, or a substantial number, of the scheme participants from an old scheme to a new scheme.

  2. The manager of the old scheme and the manager of the new scheme must each consult their own scheme's supervisor about the proposed transfer and give notice of the proposed transfer in accordance with this section.

  3. The notice must—

  4. be given to the FMA and every scheme participant of the old scheme and the new scheme, other than scheme participants who, in the opinion of the FMA, are not likely to be affected by the proposed transfer; and
    1. set out—
      1. the proposal and its implications for the proposed transferees; and
        1. the date of the proposed transfer; and
          1. the date on which the proposed transferees' written consent must be received by the manager or the trustees; and
            1. the fact that the notice has also been sent to the FMA; and
            2. be given at least 1 month before the date on which, under the notice, the proposed transferees' written consent must be received by the manager or the trustees.

              1. Giving notice under this section does not derogate from the need to comply with any other requirement of the KiwiSaver Act 2006 (in relation to a KiwiSaver scheme).

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