2006 regulations covering a number of operational matters between the CIR and KiwiSaver scheme providers by way of scheme provider agreements.
Section 228 of the KiwiSaver Act 2006 allows the Governor-General, by Order in Council, to make regulations for certain purposes. The regulations cover a number of operational matters between the Commissioner of Inland Revenue and KiwiSaver scheme providers by way of scheme provider agreements. Schedule 2 of the Act (which deals with matters to be specified in an application for registration or proposed registration as a KiwiSaver scheme) requires a certificate to be signed by the Commissioner that the provider has entered into a scheme provider agreement.
Before it can register as a KiwiSaver scheme, a provider must enter into a scheme provider agreement with the Commissioner that covers the following matters to the Commissioner's satisfaction:
- the electronic exchange of information and contributions between the Commissioner and the provider, including technical interface requirements;
- the refund of contribution overpayments;
- the use and promotion of the KiwiSaver brand and KiwiSaver trademarks; and
- the use of information that is received by the provider from the Commissioner (for example, tax file numbers) in administering the scheme.
The scheme provider agreement may also cover other matters in addition to those on this list.
The scheme provider agreement may be reviewed every seven years. At least six months before a review date, the Commissioner must give notice to a provider of an impending review. If the Commissioner does not give notice, no review is required. If the Commissioner does give notice that a review is intended, the Commissioner must complete the review and give notice to the provider of his or her decisions on or before the end of the sevenyear period. The date by which the review must be completed may be extended if the Commissioner gives at least one month's notice to the provider of the later review date. The seven-year review period may also be made earlier or later by agreement between the Commissioner and the provider.
The regulations also specify:
- the steps that scheme providers must take to verify the identity of a member of a scheme for the purposes of the Financial Transactions Reporting Act 1996;
- the fees payable to the Financial Markets Authority to process applications for exemptions, conversions, registrations, transfers and other regulatory functions under the KiwiSaver Act;
- the process for the Financial Markets Authority to determine whether fees charged by KiwiSaver scheme providers are unreasonable and the matters that the Financial Markets Authority and a Court may have regard to in making such an assessment;
- fees KiwiSaver scheme providers may charge customers; and
- the statistical annual return scheme providers must submit to the Financial Markets Authority.
The regulations came into force on 1 December 2006.
KiwiSaver Regulations 2006 (2006/358)