Latest updates from the FMA on the 2026 KiwiSaver annual report, catalist market operator review and industry engagement
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FMA Update
24 September 2026
KiwiSaver is playing an increasingly important role in helping New Zealanders build long-term financial wellbeing and prepare for retirement. Our 2026 KiwiSaver Annual Report shows the scheme continues to grow, with total funds under management reaching $138.8 billion as at 31 March 2026.
Strong market performance and continued member contributions supported this growth, with the average member balance increasing by 11% to more than $40,000. While withdrawals reached a record $6.8 billion, KiwiSaver remains firmly in the accumulation phase, with contributions exceeding withdrawals by $6.4 billion over the year.
We are also seeing growing member engagement, with more New Zealanders actively switching investment funds and transferring between providers. However, more than 1.4 million members were not contributing regularly at year end. Supporting greater engagement with KiwiSaver remains important to helping members make informed decisions and achieve better long-term outcomes.
As KiwiSaver grows in size and maturity, we expect competition will drive innovation and better outcomes for consumers. However, providers need to make sure their marketing supports informed decision-making and presents investment information in a balanced way.
Our report provides a useful picture of how KiwiSaver is evolving and what it could mean for members and the industry. We explore this further in the latest episode of our Occasional Conversations podcast, where FMA host Paul Patton talks with FMA Head of Investment Management Emelie Jensert and FMA Chief Economist Philip Stevens about the report’s findings, changing member investment choices and the FMA’s areas of focus.
Ngā manaakitanga,
Clare Bolingford, Executive Director - Licensing and Conduct Supervision
KiwiSaver Annual Report 2026
The FMA’s latest KiwiSaver Annual Report highlights a continued shift towards growth-oriented investments, with growth funds representing the largest share of KiwiSaver assets at 49% ($68 billion). Multi-sector diversified funds remained the dominant investment choice, accounting for more than 90% of total funds under management in KiwiSaver.
The report also found fewer members are making a full withdrawal after turning 65, suggesting more New Zealanders are choosing to keep their savings invested for longer. Fund switching and provider transfers increased during the year, reflecting greater member engagement and a competitive market.
FMA Head of Investment Management Emelie Jensert said, “For many New Zealanders, KiwiSaver will be one of the largest financial assets they hold, so it matters that members understand their choices and stay engaged over time.”
The report notes the importance of providers demonstrating strong governance, fair conduct and clear disclosure to support informed long-term decision-making as KiwiSaver continues to grow. The FMA will continue our focus on fees, operational resilience, fraud prevention and complaints handling, which can all affect outcomes for KiwiSaver members.
Catalist market operator review published
We have published findings from our review of how Catalist is meeting its licensed market operator obligations, for the period 1 April 2025 to 31 March 2026. The Catalist Market is intended to operate as a “stepping-stone” market for small-to medium-sized growth businesses that seek the benefits of an exchange listing.
Our review found that Catalist complied with its market operator obligations during the review period.
Responsible Investment Association Australasia conference
FMA Executive Director, Response and Enforcement Louise Unger spoke at the Responsible Investment Association Australasia Conference Aotearoa NZ 2026 in Auckland this week.
Louise joined the panel discussion Claiming gold at the end of the SDG rainbow, which explored how New Zealand's commitment to the United Nations Sustainable Development Goals (SDG) is shaping the role of the financial sector in allocating capital, developing products and communicating sustainability claims.
The conference brought together members of New Zealand's responsible investment community to discuss emerging issues including AI, greenwashing, geopolitics and sustainable finance.
The discussion highlighted the importance of ensuring sustainability-related claims are clear, substantiated and communicated consistently, with transparency around methodologies and outcomes, to help build investor confidence. These themes are also covered in our guidance on sustainability-related disclosures published earlier this year.
Left to right: Louise Unger, Mike Burrell, Julia Leske and Chris Douglas.
CryptoWinter 2026 conference
The FMA attended CryptoWinter 2026, which brought together representatives from global financial and technology firms, digital asset businesses and professional services firms, along with regulators and policy makers, to share insights and discuss developments in the digital assets sector.
The conference featured discussions on topics including tokenisation, digital payments, stablecoins, digital identity, AI and the future of banking, with speakers exploring opportunities and challenges associated with the continued growth of digital assets.
FMA Head of Innovation and Fintech Alan Crofts joined a panel on the role of digital assets in New Zealand’s regulated financial advice framework. FMA Head of Legal Alexandra McNair participated in a discussion on the current state of New Zealand’s digital asset policy landscape, covering recent developments, emerging global trends and key considerations for market participants.
Left to right: Paul Quickenden, Alan Crofts, Jenny Wei and Meredith Pearson.
Working together to improve insurance outcomes for tangata whenua
We recently brought together insurance industry stakeholders to discuss findings from our recently published Matangirua research, Experiences of tangata whenua with insurances. The research explored how Māori experience the insurance system in Aotearoa and identified both barriers and opportunities across the sector.
We heard valuable insights from insurers, advisers, industry representatives and stakeholders, and discussed priority actions that could address structural and systemic barriers and challenges that exist for Māori consumers.
The FMA’s Insurance and Matangirua teams will continue to facilitate kōrero and engagement with industry stakeholders to help support innovation, strengthen trust, and improve access and outcomes for tangata whenua. We are also working towards facilitating engagement with iwi, hapū and nominated representatives to share insights and support solution-finding, particularly for whenua Māori, marae and papakāinga.
We're grateful to everyone who contributed their expertise and perspectives. These action-oriented conversations are an important step in building a financial sector that works well for all New Zealanders.
Class exemptions granted
The FMA has renewed the following class exemptions for a period of two years:
Conduct of Financial Institutions (CoFI) intermediated distribution guidance
We have been considering whether targeted updates to the CoFI intermediated distribution guidance were needed in two specific areas:
- Information relating to the CoFI sales incentives regulations
- Issues relating to mortgage advisers arising from the Commerce Commission's market study into personal banking services.
We have concluded that updating the guidance is not the preferred mechanism for addressing these two issues. Instead, we will pursue more targeted approaches through a dedicated information sheet on the CoFI sales incentives regulations. This will provide practical information about the CoFI sales incentives regulations, including how they apply in practice and how they fit within the broader CoFI framework. We will share further information with the market as this work progresses.
We will also look at publishing practical examples as part of our next steps of our work on access to financial advice. This will include highlighting what good looks like, and how flexible, proportionate compliance supports access to mortgage advice and contributes to more effective competition.
In the course of this work, we heard feedback about CoFI implementation and the practical impact of compliance requirements on intermediaries. We are considering potential next steps and will be in touch with relevant stakeholders to engage further on this.
Regulatory returns
Regulatory returns are one of the tools the FMA uses to monitor licensed entities. This is a series of questions to obtain an up-to-date understanding of the nature, size and complexity of licensees, and relevant activities over the reporting period. The data is analysed over time to identify trends that can be used to inform subsequent monitoring activities.
Returns are completed in the myFMA portal and need to be submitted, for the 12-month period 1 July 2025 to 30 June 2026. An email containing a link to submit the regulatory return has been sent to you.
Financial institutions
This will be the first regulatory return for licensed financial institutions. The full question set and accompanying guidance is available here.
Financial advice providers
All licensed financial advice providers are required to complete an annual regulatory return. To familiarise yourself with questions for financial advice provider regulatory returns, you can download our guide and refer to the FAQ here.
MIS, DIMS, DIs, crowdfunding and peer-to-peer
Licensed managed investment scheme managers, discretionary investment management services providers, derivatives issuers, crowdfunding service providers and peer-to-peer lending service providers are also required to submit their annual regulatory return.
Consultation on standard licence conditions opens in October
Next month we will open consultation on proposed changes to the standard conditions imposed on market services licences issued under Part 6 of the FMC Act.
The changes under consideration aim to streamline licensing and ongoing obligations. At present there is overlap in the standard conditions imposed on each market service, which adds complexity, particularly for entities licensed to provide two or more market services.
The consultation will also include a proposal to introduce standard conditions for licensed consumer credit providers.
We encourage all interested parties to provide feedback on the proposal. We will consider submissions before finalising and notifying licensees of any changes, which will take effect in mid-2027.
To receive a notification when the consultation opens, make sure you are signed up for consultation alerts.
FMA warns of TSB overcharging on business accounts
The FMA has issued a warning about TSB Bank Limited’s (TSB) conduct after it charged fees on business cheque transactions that weren’t subject to fees according to its own terms and conditions.
Between 30 November 2017 and 20 November 2023, TSB charged a $0.25 fee on some business cheque transactions that shouldn’t have attracted the fee. The error affected 7,309 customer accounts. TSB has paid back a total of $1.73 million, which covers the fees, related interest and charges, and compensation for the use of that money over time.
High Court places 23 further Chance Voight entities in liquidation
The FMA has welcomed a High Court decision placing 23 further entities in the Chance Voight group into liquidation.
On 10 September 2026, the Court granted the FMA’s application to liquidate 23 additional entities in the Chance Voight group. The Court found that the active entities (those with bank accounts) are insolvent and unable to pay their debts as they fall due, and that the inactive companies (those without bank accounts) should be placed in liquidation on the grounds that it is just and equitable to so do because it was artificial to see them as separate to the Group and the efficiency of the liquidation process and the other factors warrant their liquidation.
FMA Head of Enforcement Margot Gatland said “Bringing all entities under one liquidation process is an efficient way to protect the interests of investors and creditors. Our investigation into the group and associated parties continues, and we encourage anyone with information to contact us.”
Stay informed
Check out the FMA’s enforcement activity for more about the actions we take to protect investors and maintain market integrity.
Deepfakes and investment scams
Recent cases involving the impersonation of businesses and well-known New Zealanders, including Brad Olsen and Frances Cook, show how convincing investment scams can be. Scammers use trusted names, brands, and identities to build credibility, often through cloned websites, fake social media profiles, stolen branding, and deepfake content.
Financial service providers should keep their details on the Companies Register and Financial Service Providers Register up to date, including website links and contact details. Public figures should ensure their official websites and social media profiles are easy to find and clearly identify their legitimate channels.
Making accurate information easy to find helps consumers verify who they're dealing with and makes it harder for impersonators to succeed.
It's also worth regularly checking whether your brand or identity is being impersonated online. If you're being impersonated, use your channels to warn customers, followers and audiences, and report the imposters to the FMA. Early reporting can help us disrupt scams and reduce harm.
We regularly publish warnings containing the names of businesses or individuals you should be wary of if you are planning to invest.
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