The Government Actuary is keeping a tighter rein on Huljich Wealth Management to ensure its Kiwisaver fund is responsibly managed.Government Actuary David Benison said today the Huljich Kiwisaver Scheme needs further and close monitoring and has asked its
The Government Actuary is keeping a tighter rein on Huljich Wealth Management to ensure its Kiwisaver fund is responsibly managed.
Government Actuary David Benison said today the Huljich Kiwisaver Scheme needs further and close monitoring and has asked its trustee, Trustee Executors, to provide more detailed reports of the scheme, and more of them.
The decision confirms the National Business Review’s understanding the office of Mr Benison has been looking at management of the fund manager for some time.
NBR understands a detailed, written complaint was made to government actuary David Benison about Huljich Wealth Management’s KiwiSaver funds, months before the fund manager’s problems were leaked to the media earlier this year.
Hujlich’s troubles centre on allegations former managing director and chief investment officer Peter Huljich manipulated the fund’s investment performance by using related party transactions to cover investment losses.
Last month Peter Huljich resigned and former National Party leader and Reserve Bank Governer Don Brash took over.
The Government Actuary has a supervisory role over registered KiwiSaver schemes and will intervene where the security of members’ benefits, solvency or management of the scheme are considered to be inadequate.
Mr Benison said he became concerned about the Huljich KiwiSaver scheme when it was disclosed to him that compensation payments had been made that had affected the quoted investment performance.
His investigation of Huljich is running alongside a Securities Commission investigation, focusing on possible breaches of the Securities Act and Financial Reporting Act.
Mr Benison has asked Trustee Executors to ensure a new Statement of Investment Policies and Objectives (SIPO) for the Huljich scheme is prepared by the end of April and filed at his office within five working days.
Trustee Executors will also have to keep Mr Benison informed, via quarterly statements, about investment returns for all the Huljich Kiwisaver funds and supply minutes of its quarterly meetings with Huljich Wealth Management.
It must also inform Mr Benison if the Huljich scheme “may have or has failed to comply with its trust deed, including any failure to comply in any material respect with the SIPO.”
The controls will remain in place until rescinded by the government actuary.
Mr Benison said he is keeping a close eye on the management of all managers and trustees who run Kiwisaver schemes.
Dr Brash said he welcomed the chance to reassure the Government Actuary the Huljich scheme is being responsibly managed and was confident it would have no difficulty in meeting the Actuary’s requirements.
“There is nothing in the law requiring KiwiSaver schemes to have a Statement of Investment Policy and Objectives but we have been working to prepare one over the last several weeks, “ Dr Brash said today.
“I have no doubt that it will be in place before the end of the month. We have every intention of being a leader in the Kiwisaver industry in terms of transparency.”
Dr Brash said the fund manager had also set up a new investment committee, with new members and an external consultant experienced in New Zealand and Australian equity markets.
