Fisher Funds has agreed to pay the New Zealand Association of Credit Unions (NZACU) $50 per active member transferred following a new KiwiSaver distribution deal reached this week.
Henry Lynch, NZACU chief, said the organisation would also receive $50 for each new member the 20-strong credit union group signs up for Fisher plus an ongoing fee of 0.1 per cent of funds under management attributed to its members.
Lynch said the NZACU signed the new arrangement with Fisher after deciding to wind up its own scheme, managed by Mercer, late last year.
"We made the decision for two reasons - increased compliance costs and legislative changes meant [Mercer] could no longer act as scheme trustee," he said.
New regulations due to take effect later this year require KiwiSaver schemes to appoint an independent trustee. Mercer acted as trustee, administrator and investment manager for the credit union scheme.