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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

181: Transfer with FMA consent

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

The Financial Markets Authority (FMA) can agree to let you transfer your savings to a new scheme if they are satisfied with a few things. They check if the new scheme is at least as good as the old one for you. They also consider if the transfer is reasonable, thinking about the value of the assets being moved. You can ask the FMA for consent to transfer if you are the manager of the old or new scheme, a relevant employer, or someone the FMA thinks has a good reason to be involved. If you ask for consent, you must tell the people affected that you have applied to transfer their savings without their consent, and that they can give their thoughts to the FMA.

The FMA will think about what the people affected say before deciding whether to agree to the transfer. The FMA can agree to the transfer, but with certain conditions that they will write down. You must do the transfer according to those conditions.

The FMA's decision is based on rules that can be found in the Financial Markets Conduct Act 2013 and other related laws, such as the s 9BAA and ss 119G and 119H.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091186.

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

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

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182: Transfers from KiwiSaver scheme, or

"What happens when you switch KiwiSaver schemes and what information gets shared"

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

181Transfer with FMA consent

  1. The FMA may consent to a transfer if the FMA is satisfied that—

  2. the terms and conditions of the new scheme are no less favourable to the proposed transferees than the terms and conditions of the old scheme; and
    1. the transfer is otherwise reasonable in all the circumstances (including having regard to the value of the assets transferred from the old scheme to the new scheme); and
      1. the person applying for the transfer is the manager of the old or new scheme, a relevant employer, or another person who the FMA considers has an appropriate interest in the transfer; and
        1. the applicant has given notice to every proposed transferee that—
          1. the applicant has applied for the FMA's consent to transfer the person without the person's written consent; and
            1. the person may make submissions to the FMA about the transfer.

            2. The FMA must have regard to any submissions received by proposed transferees before deciding whether or not to give its consent.

            3. The FMA may give its consent subject to any terms and conditions that the FMA sets out in the written notice of consent.

            4. The transfer must be carried out in accordance with those terms and conditions.

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