The government's announcement that KiwiSaver providers have until 2018 to start providing transparent information about all the fees they charge is a "shameful" demonstration of the lobbying power of New Zealand's banks, the chief executive of start-up, low-fees provider Simplicity, Sam Stubbs, says.
Consumer Affairs Minister Paul Goldsmith announced the start date today, saying "some providers have indicated they need to make IT system changes and will not be able to provide a dollar figure for fees by next year".
However, Stubbs scoffed at that, saying the information was already provided to the Sorted website and could be calculated by people who knew how to do so, "but somehow it's too hard to tell clients directly".
"It's within the government's power to insist on that information", which the KiwiSaver schemes run by the ASB and Kiwibank already provided, Stubbs said. "The government is assisting the banks in keeping people in the banks' schemes" although the year's grace was no more than "delaying the inevitable".
The new regulations will require that full dollar fee amounts will be required as part of the annual statement sent to KiwiSaver members. At present, management and performance fees can be split up and provided in a variety of formats.
