Many KiwiSaver sales reps unqualified under new law

Annabel Cotton. Photo / Supplied

Many of the people now selling KiwiSaver will not be qualified to do so under new legislation expected to come into force next year.

At present there are no minimum qualifications to become a financial adviser - or KiwiSaver salesperson.

But under the new regulations, Commissioner of Financial Advisers Annabel Cotton said KiwiSaver would be considered a category one complex financial product and only those with a level-five qualification would be able to sell it when new regulations were introduced next year.

"From the end of next year they will need to be totally compliant with the standards; if not they are practising illegally and I hope anybody aware of people undertaking such action will report it."

The level-five qualification has yet to be firmed up but is expected to be similar to a university diploma which can take up to two years to obtain.

But that is far from the training most KiwiSaver salespeople are getting at the moment.

Aventine, which offers the Superlife KiwiSaver fund, began recruiting salespeople three weeks ago.

Its advertisements promise salespeople they can earn more than $100 a day selling KiwiSaver.

Aventine principal Michael Chamberlain said there was no minimum qualification for his salespeople but some were qualified accountants.

Chamberlain said Aventine gave its staff an in-depth training course and provided ongoing refreshers. Also, senior staff supervised new salespeople.

But he admitted some workers would need more training before they would be able to sell KiwiSaver under the new legislation.

The Mr and Mrs KiwiSaver company was set up six months ago by a former mortgage broker and investment adviser.

The company's salespeople are paid $35 for every person they sign up for Fidelity Life KiwiSaver products.

Lawrence Diack, the director in charge of recruiting for the company, said its training consisted of a one-day course, weekly sales meetings and ongoing quarterly training sessions.

He was aware the new legislation would mean lifting the standards but said the company was prepared to help its salespeople meet the new legislation.

"Our vision is to have a low-cost financial advisory business and to bring our people through that process."

Retirement Commissioner Diana Crossan said joining KiwiSaver was an important decision to make.

She advised people who were worried about any salesperson's approach to take the information and take their time deciding whether it was right for them.

Also, visiting www.sorted.org.nz could help people decide if they could afford it.

"This is a long-term savings scheme, you are not going to miss out by waiting until tomorrow."