FMA chief executive Sean Hughes said he is seriously concerned about a number of matters regarding SuperLife’s sales practices, potential non-compliance with the law and “apparent poor monitoring of the activities of its sales force”.
Furthermore, the FMA urged investors to be wary of “unacceptable” sales practices being used by unregistered KiwiSaver sales representative Patrick Diack.
According to the FMA, Diack’s sales approaches included soliciting members of the public outside Work and Income (employment centre) offices, offering clients money to join a KiwiSaver scheme and signing clients up to scheme membership without providing them with the investment statement – the disclosure document that provides investors with the information they need to make an informed decision.
The FMA also said it is concerned about the distribution practices of the SuperLife KiwiSaver Scheme, a registered QROPS. IN particular, the FMA expressed concerns about SuperLife’s apparent failure to properly train its employees and monitor their compliance with the Securities Act and Financial Service.
Hughes said: “From 1 July, FMA will monitor compliance by KiwiSaver providers with their obligations under the Financial Advisers Act. We will not hesitate to take enforcement action against KiwiSaver providers who fail to ensure they comply with their legal requirements.”
