Member update WINTER 2018 - SHAPING FUTURES 2018 - Workplace Savings NZ
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member update
WINTER 2018
SHAPING
FUTURES
2018
member update
WINTER 2018
WELCOME
It has been a busy few months since the last Member Update in Autumn.
The policy agenda continues to be full, especially in relation to KiwiSaver, restricted workplace savings
schemes and advice-related issues.
Working together with the FSC, we have represented the industry jointly on key issues such as the
KiwiFund Bill. Our conference committee has developed this year’s conference, Shaping Futures, to
be a stellar event with high-profile speakers and thought-provoking content.
Finally, we have lots on the agenda in the coming quarter, so thank you for the continued work that
each of you put into the collective effort to shape the future of the industry.
David Biegel Richard Klipin
Chairman FSC CEO
2
member update
winter 2018
POLICY AND ADVOCACY
Together with the FSC, Workplace Savings NZ is involved in policy and advocacy
activities to support the delivery of strong and sustainable customer outcomes.
Highlights this quarter include:
Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions)
Notice 2018 – services provided in relation to certain retirement schemes
• During the second quarter of this year we made submissions to the Ministry of Justice on
several successive drafts of the relevant provisions in this notice, which came into force on 30
June 2018 and has replaced both a prior class exemption and a range of individual exemptions.
The notice addresses a range of technical impediments to restricted workplace savings
schemes invoking conditional exemptions from the Anti-Money Laundering and Countering
Financing of Terrorism Act 2009.
Restricted schemes – assurance reports on scheme property controls – exemption application
• On 2 July we lodged with the Exemptions Team at the Financial Markets Authority a detailed
proposal for a class exemption, for qualifying restricted schemes whose administration
managers obtain their own assurance engagements, from the custodial audit assurance
requirements in the Financial Markets Conduct Regulations 2014. The proposal included a
draft exemption notice.
Our current expectation is that the Financial Markets Authority will consult in early August
regarding the detail of the exemption proposal, seeking submissions on (among other things)
the detail of any exemption conditions. We will be promptly and actively engaging in the
interests of ensuring appropriate timing, scope and conditionality.
Right-sizing obligations for restricted schemes
• The Financial Markets Authority is embarking on a project entitled ‘Right-sizing obligations for
restricted schemes’ and has invited Workplace Savings NZ to share with it a list of identified
issues and problems that merit regulatory attention. We have compiled and are consulting on
an initial issues list which we will lodge with FMA in early August to address a range of ‘pain
points’ – but this will not be treated as as a closed list and will continue being refined.
Taxation – UK Retirement Savings
• We have made a submission in response to a request by Inland Revenue for feedback on two
proposals to address tax issues in relation to transfers of UK retirement savings (including as
they affect KiwiSaver schemes). This response follows the FSC’s industry submission to the
Tax Working Group’s consultation on the Future of Tax in April which focussed on retirement
savings recommendations.
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member update
winter 2018
POLICY AND ADVOCACY
Code of Professional Conduct for financial advice sector
• We supported the intent of the consultation in April and the FSC’s eight
recommendations, including aiming for a ‘good advice’ experience rather than advice
outcomes (and further consultation on competency requirements).
Disclosure requirements in the new financial advice regime
• The FSC submitted a response in May. We agreed with the objectives and supported the
principles-based approached. We offered to support the MBIE in scenario testing and to work
with them for the best solution on how commissions should be calculated for consumers.
Proposed exemption to enable dual-language product disclosure statements
• A response was submitted in May supporting the proposed exemption (together with the
requirement for certification by a qualified translator).
GST – Unit Trust Management Fees
• A response was submitted to Inland Revenue in May, after a direct request for further
information supporting either the 10% option or an exemption option, expressing a preference
for the status quo of 10%.
Financial Services Legislation Amendment Bill
• The Select Committee released its report on 31 July. We are currently reviewing the report.
POLITICAL AND REGULATOR ENGAGEMENT
Over the quarter, and jointly with the FSC, we have represented the industry at a number of Select
Committees. We are increasingly recognised as positive contributors, which is enabling us to shape
the regulatory agenda in a number of key areas and achieving strong outcomes for the industry.
KiwiFund Bill
• Following our submission in April, we were invited to attend the Economic Development,
Science and Innovation Committee Select Committee on the KiwiFund Bill.
• The committee were very engaged and wanted to hear industry views in more detail. The
discussions were robust, and the Select Committee recognised the harm a government
guaranteed scheme might bring.
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member update
winter 2018
THE INDUSTRY IN THE NEWS
We continue to attract media requests and attention on our key topics and have issued a number
of press releases this quarter. Recently, our partner, the FSC, has commented on KiwiSaver,
regulation, transparency and disclosure. All press releases are available on the FSC website.
KIWISAVER
‘Force us to save more, Kiwi milennials tell Government’ NZ Herald – 01/07/2018
It’s clear that millennials are going to be generation KiwiSaver. Owning a house and
relying on New Zealand Superannuation are options younger New Zealanders simply
aren’t counting on,” said the FSC.
https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12079473
‘Outliving income damaging Kiwis’
New Zealand Herald – 29/06/2018
Not so, says Hawkesby, quoting New Zealand Financial Services Council (FSC), research
of over 2200 people from late last year...
https://www.nzherald.co.nz/harbour-asset-management/news/article.cfm?c_id=1504525&objectid=12078119
‘Generation KiwiSaver: Retirement reimagined’
Radio New Zealand – 30/06/2018
FSC chief executive Richard Klipin said young people also believed they would
need more money during retirement than current...
https://www.radionz.co.nz/news/national/360812/generation-kiwisaver-retirement-reimagined
‘Financial Services Council: KiwiSaver changes welcomed’
Voxy – 02/07/2018
The Government is to be commended for progressing them and although there is
more work to do, they are a great start’ said the FSC.
http://www.voxy.co.nz/politics/5/315128
‘Research delivers a wake-up call for Generation KiwiSaver’
Voxy – 29/06/2018
http://www.voxy.co.nz/national/5/314898
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member update
winter 2018
THE INDUSTRY IN THE NEWS
KIWISAVER
‘Millennials plan to rely on KiwiSaver, not home ownership or super in...’
TVNZ – 30/06/2018
The Financial Services Council asked more than 2000 people between the ages
of 18 and 35 about how they would fund their retirement, what...
https://www.tvnz.co.nz/one-news/new-zealand/millennnials-plan-rely-kiwisaver-not-home-owner-
ship-super-in-retirement-survey
‘Home ownership out of sight, say nearly half of young Kiwis’
Newstalk ZB – 29/06/2018
A survey of 18- to 34-year-olds has revealed that just 54 per cent expect to own
their own home by retirement, while only 30 per cent believe they will still get the
Government pension - New Zealand Superannuation.
http://www.newstalkzb.co.nz/news/business/home-ownership-out-of-sight-say-nearly-half-of-young-kiwis/
TAX
‘Tax Working Group warned off lowering company tax’
Stuff.co.nz – 02/07/2018
Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’
Union lobby group argued for the change in their ‘Fair Tax for...
https://www.stuff.co.nz/business/industries/105185282/tax-working-group-warned-off-lowering-company-tax
RETIREMENT EXPENDITURE GUIDELINES
‘Retirees spending more than what they get from NZ Super: research’
NZ Herald – 02/07/2018
Massey University’s Westpac Fin-Ed Centre has updated its annual Retirement
Expenditure Guidelines and it shows transport and health costs have pushed up the
cost of living for retirees.
https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12094949
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member update
winter 2018
INDUSTRY BEST PRACTICE
We have secured the who’s who of political and industry
presenters, speakers and specialists for this year’s two-day
national conference.
Kicking off day one, New Zealand’s Minister for Finance,
the Hon Grant Robertson, is taking to the main platform
followed by Rob Everett, CEO of the Financial Markets
Authority (FMA). We are also hosting an exclusive lunchtime
roundtable with FMA senior leaders John Botica, the Director
of Market Engagement and Liam Mason, the Director of
Regulation, discussing regulatory change in New Zealand.
Day two starts with the views of Amy Adams, the
Spokesperson for Finance from the National Party, on New
Zealand’s place in the world. We are also welcoming Adrian
Orr, Govenor of the Reserve Bank of New Zealand.
As we get closer to the conference, early bird discounts
finished at the end of June and the registrations are looking
very healthy in comparison to last year.
The Conference Committee launched the Workplace Savings NZ communications award nominations
in June. The awards will be presented at the 007-themed Gala Dinner on 6 September, which will be
attended by our special guest, the Hon Kris Faafoi, Minister of Commerce and Consumer Affairs.
The award categories are:
PRODUCT DISCLOSURE MOST INNOVATIVE BEST OVERALL WORKPLACE SAVINGS
STATEMENT (PDS) COMMUNICATION KIWISAVER MEMBER EXCELLENCE
OF THE YEAR EXPERIENCE IN COMMUNICATION
The FSC/WSNZ conference is fast becoming the national conference in the sector,
showcasing our work, members and the industry by creating stimulating and lively debate.
NOMINATE SOMEONE TODAY...
Find out more, register, and nominate a colleague for an award at;
www.shapingfutures.co.nz
Nominations close 10 August 2018.
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member update
winter 2018
SHAPING FUTURES CONFERENCE HIGHLIGHTS
Politicians and industry leaders will explore key topics in the industry including financial services
regulation, global politics, a changing client base, technology, customer engagement and privacy,
as well as edutech, fintech and insurtech topics.
POLITICAL KEYNOTE SPEAKERS
HON GRANT ROBERTSON HON KRIS FAAFOI AMY ADAMS
Minister for Finance, Minister for Civil Defence, Spokesperson for Finance
Minister for Sport and Recreation, Commerce and Consumer Affairs, National Party
Associate Minister for Arts, Associate Immigration Minister
Culture and Heritage
GUEST SPEAKERS
ROB EVERETT ADRIAN ORR JAKE BAILEY JAZZ THORNTON
Chief Executive Governor ‘Standing on the Founder
Financial Markets Authority Reserve Bank of Shoulders of Giants’ Voices of Hope
New Zealand
To register for the Shaping Futures Conference,
please visit our website:
www.shapingfutures.co.nz
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member update
winter 2018
SHARING INSIGHT AND KNOWLEDGE
One of the roles of Workplace Savings NZ is to share insight and industry knowledge. Richard
Klipin often supports members and the industry by giving presentations to support this activity
and engage with the wider financial services community. Presentations this period included:
COMMISSION FOR FINANCIAL CAPABILITY (CFFC) SUMMIT
This two day event hosted by the CFFC was well received with a full house. Building financial
literacy was, and is, the key focus. The KiwiSaver 2.0 panel discussion was a good look at the key
issues facing the KiwiSaver system and the best ways to improve it.
The Government has recently made announcements to improve the system which is excellent news.
INSIGHT AND NETWORKING EVENT
FSC and Workplace Savings NZ Committee members enjoyed the
chance to share insights, learnings and celebrate the outcomes of
their hard work at the event on 30 May 2018.
Big thanks to our speakers for sharing their learnings and
thoughts with the audience – Mark Banicevich, Sharon Mackay,
Kristy Redfern, Peter Kenny and Laura Abba.
The event showed the diversity and desire to make a difference
of committee members. Remember to get in touch with us if you
want to oin any committees.
RETIREMENT EXPENDITURE GUIDELINES REPORT
Promoting the need for good research and facts, Workplace Savings NZ
co-sponsored the recent Massey University ‘Retirement Expenditure
Guidelines’ report.
The guidelines, which are produced annually by the Westpac Massey
Fin-Ed Centre, calculate what retirees currently spend to maintain either a
‘no frills’ retirement, or a more fulfilling ‘choices’ lifestyle that includes some
luxuries. Costs are calculated for one and two-person households in both
metropolitan (Auckland, Wellington and Christchurch) and provincial areas.
The report, which covers the 12 months to June 30, 2017, shows all
households, including those groups with a ‘no frills’ lifestyle, now have a gap between what they’re
spending and what they receive from New Zealand Superannuation. Report author, Dr Claire
Matthews from the Massey Business School, says this is not necessarily cause for concern.
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member update
winter 2018
INDUSTRY LEADERSHIP AND INSIGHTS
GENERATION KIWISAVER RESEARCH
The third instalment of ‘Generation KiwiSaver’ was
released by the FSC in June. The research, led by the
FSC’s Strategic Research Committee and conducted
on behalf of the FSC by Horizon Research, focused on
New Zealanders aged 18- 34 and their attitudes towards
retirement planning. It examined what they expected
in their retirement, how this would be funded, and their
confidence towards future planning.
This is the final piece of research in the series,
complementing the first and the second, ‘Growing the
KiwiSaver Pie’ and ‘Great Expectations – Retirement
Realities for Older New Zealanders’. The research is
available on the FSC website.
JUNE 2018
Here are some of the comments to come out of the paper:
“So much uncertainty because the future is so far off and I don’t even know
what sort of job I’ll have, if I actually get one and am able to pay off student
loans quick enough to start saving in time.” (Female, 18-24 years, Auckland)
“I’m 33 now; I expect by the time I can get the super it will be 70+.
That’s the age I’m working on.” (Male, 25-34 years, Wellington City)
“To be honest it isn’t something I have thought a hell of a lot about. All I know
is that I’m 21 and in two and a half years my KiwiSaver account has $10,000
which I think is decent and then if I add to that any investments I have made
I think I should be alright by the time I retire but to be completely honest I
actually have no idea.” (Female, 18-24 years, Auckland)
10member update
winter 2018
COMMUNITY OF PROFESSIONALS
The work of the Workplace Savings NZ Committees continues, with the Workplace Savings
Council, the Conference Committee and the KiwiSaver Working Group meeting regularly.
Highlights this quarter include:
• Creation of the ‘Shaping Futures’ annual conference (see page 6)
• Several restricted schemes submissions
• Joint submissions and advocacy work with the FSC
UPCOMING EVENTS
In addition to the annual conference, we’ve a number of exciting events coming up for the rest of
2018. More news on these to follow closer to each date, and please contact us at fsc@fsc.org.nz if
you’d like to know more.
WHEN WHERE WHAT
15 & 16 August Wellington Asia Region Funds Passport seminar with
Auckland NZX and DLA Piper
6 September Auckland Breakfast session with Women in Super:
Woman and Machine – Resilience for a
new way of working together
6 & 7 September Auckland Shaping Futures National Conference
21 September Auckland Asia Region Funds Passport Industry Day
with the Financial Markets Authority
November Wellington, Auckland FSC Navigating Regulation Roadshow
Christchurch, Dunedin
December Wellington End of Year function
11member update
winter 2018
WORKING WITH THE FINANCIAL SERVICES COUNCIL
2017 saw Workplace Savings NZ forming a closer alliance with the Financial Services Council.
Outcomes have been stronger submissions, a cohesive industry voice, and a fantastic financial
services sector conference. We continue to progress a more formal structural arrangement
to deepen our working relationship. A key part of this is getting the fee structure right so that
membership fees are fair, transparent and equitable for all members. Both organisations are
committed in principle to getting this sorted within the next few months, and we will share more
news in the near future.
WELCOME TO OUR NEW WORKPLACE SAVINGS NZ COUNCIL
The Workplace Savings NZ Council was confirmed at the Annual General Meeting on 17 May 2018.
We are delighted to welcome four new councillors to the team. Your 2018 Council is:
NEW NEW
David Biegel Vanja Thomas Grant Hodder Joe Bishop Daniel Callaghan
WSNZ Chair WSNZ Deputy Chair WSNZ Treasurer Kiwi Wealth Medical Assurance
Lifestages KiwiSaver / FANZ Guardian Trust ANZ Society
NEW NEW
Roger Clayton Janet Hayden Sharon Mackay Ian Russon Mike Woodbury
Licensed BNZ Police Savings Chapman Tripp
Independent Trustee Scheme
We thank each of our Workplace Savings NZ Councillors for their time and effort in governing the
business and providing valuable insights and direction to our combined outputs and outcomes.
We also thank those Councillors who retired in the last 12 months, being: Noah Schiltknecht,
Tim McGuinness, Steve Dunn and Ana-Marie Lockyer.
12member update
winter 2018
KEY FACTS
FINANCIAL SERVICES INDUSTRY PROTECTING WEALTH:
CONTRIBUTION TO NEW ZEALAND THE LIFE INSURANCE INDUSTRY
$2.5
BILLION
in-force
$236 $13.5
$1.2 premiums
BILLION BILLION *
57,000 $3.3
Gross Domestic Product
(GDP) of NZ people BILLION MILLION
employed claims every day
paid (average)
$9.3
billion
2nd 56% ASSETS
MANAGED
fastest female
growing employees
sector
by GDP
GROWING WEALTH: DISTRIBUTION THE FINANCIAL
THE INVESTMENT INDUSTRY AND ADVICE SERVICES COUNCIL
$135
8804 35
invested
$47 2.7m
by
billion members
BILLION KIWISAVERS
MANAGED
INVESTMENT authorised and/or
registered
95%
ASSETS LIFE
financial INSURANCE
advisors market
represented
* Financial and insurance services GDP.
Sources: Stats NZ, LEED, FSC Statistics, RBNZ, Morningstar, FMA.
Thanks for reading the winter newsletter. We’re always interested in your feedback.
Please contact us on 09 985 5762 or fsc@fsc.org.nz with your thoughts and opinions.
13© Workplace Savings NZ Incorporated. All rights reserved.
This publication is subject to copyright with all rights reserved.
Reproduction in part is permitted if the source reference
“Workplace Savings NZ” is indicated.
Courtesy copies are appreciated. Reproduction, distribution, transmission or sale
of this publication as a whole is prohibited without the prior authorisation of
Workplace Savings NZ.
Although all the information used in this publication was taken carefully from reliable sources,
Workplace Savings NZ does not accept any responsibility
for the accuracy or the comprehensiveness of the information given.
The information provided is for information purposes only and in no event shall
Workplace Savings NZ be liable for any loss or damage
arising from the use of this information.
Workplace Savings NZ
Level 33, 23-29 Albert Street, Auckland, 1010
(09) 985 5762 fsc@fsc.org.nz www.fsc.org.nzYou can also read
