KiwiFund Bill

  • discharged on 17 August 2018
  • This Bill was replaced on 18 January 2018 to make corrections to clause 7(b).

KiwiFund Bill

Member’s Bill

7—1

Explanatory note

General policy statement

This Bill establishes an independent working group with the objective to set up a government-owned and operated KiwiSaver provider, known as KiwiFund. It is intended that the working group would first examine the accountability of current KiwiSaver providers relating to complaints of charging exorbitant fees, unethical investments, and profiteering in the trading of Kiwisaver providers. The working group would be made up of 4–5 specialists across banking, savings, and retirement fields. The working group would advise on setting up KiwiFund based on broad principles such as:

  • a lower and transparent fee structure;

  • a government owned and operated KiwiSaver scheme;

  • a requirement that profits stay in New Zealand;

  • preferential treatment given to New Zealand based investments;

  • a requirement that funds are invested in socially and ethically responsible ways; and

  • the new provider be supported by a government guarantee.

KiwiFund would provide an option for people to choose a KiwiSaver provider that is ultimately accountable to New Zealand taxpayers.

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause.

Part 1Preliminary provisions

Clause 3 states the purpose of the Bill.

Clause 4 provides that the Act binds the Crown.

Part 2KiwiFund working group

Clause 5 provides for the term of the working group.

Clause 6 provides for the membership of the working group.

Clause 7 states the primary objective of the working group.

Clause 8 provides for the remuneration for members of the working group.

Clause 9 provides that the working group must prepare a report of its findings and present the report to the Minister.

Clause 10 provides that the Treasury will provide secretariat support to the working group.

Clause 11 provides that the working group will be funded by permanent legislative authority.