New disclosure rules for retail KiwiSaver schemes to report on funds in a standardised manner have been introduced. The KiwiSaver (Periodic Disclosure) Regulations 2013 come into force on 1 July 2013.
Under the regulations, managers of retail KiwiSaver schemes will have to publish five disclosure statements per year for each fund. This comprises:
- one comprehensive disclosure statement, relating to the tax year (known as the annual disclosure statement, or ADS). An ADS must be completed not later than 60 working days after the end of each disclosure year and relate to the 12-month period ending on the last day of that year; and
- four quarterly disclosure statements (or QDSs). A QDS must be completed not later than 15 working days after the end of each quarter of the disclosure year and must relate to the 12-month period ending on the last day of that quarter.
For each ADS and QDS the managers must report on the following matters:
- the funds performance and returns;
- fees and costs;
- asset allocations and portfolio holdings;
- liquidity and liabilities; and
- key personnel,
as specified in the regulations.
A QDS also requires information on:
- material changes to the fund's trade allocation policies, trade execution policies, and proxy voting policies;
- changes to the fund's valuation and pricing methodologies; and
- any conflicts of interest.
Under the regulations, the disclosure statements are required to be published on KiwiSaver providers' websites and KiwiSaver providers will also need to publish the information in a standard spreadsheet that can be accessed by analysts, commentators and investor information services.
Timing of first disclosure statements
The first ADS for each fund of a KiwiSaver scheme will relate to the 12-month period ending on 31 March 2014 and is required to be provided to the Financial Markets Authority (FMA) and to be made publicly available not later than 27 June 2014 (60 working days after the end of the 2013–2014 disclosure year).
The effect of a transitional provision for the 2013–2014 disclosure year (in Schedule 1 of the Regulations) is that a QDS is not required to be completed after the end of the first quarter of that year. Under these regulations, the first QDS that must be prepared for each fund will therefore relate to the 12-month period ending on 30 September 2013, and that statement must be provided to the FMA and be made publicly available not later than 21 October 2013 (15 working days after the end of the second quarter of the 2013–2014 disclosure year).