Investment loss from KiwiSaver mistake

If a mistake is made by your provider, you may receive payment for your financial loss.

Investment loss from KiwiSaver mistake

Ricky* completed online forms to transfer his funds from one KiwiSaver provider to another. Two months later, Ricky realised the funds hadn’t been transferred. The provider offered a settlement of $300, a figure greater than any loss of investment returns for Ricky. Ricky claimed he should be entitled to $120,000 for the time and effort spent bringing a complaint against the provider.

Section 56 of the KiwiSaver Act required the provider to “as soon as is practicable, give notice … to the provider of the old scheme … that [Ricky had] ceased to be a member of the old scheme and the effective date of the transfer”. Ricky did not provide any evidence of the direct loss of any sum of money caused by the provider. Therefore, a payment of $300 was reasonable, in respect of any loss of investment returns Ricky might have suffered as a result of the two-month delay in the transfer of funds. The provider was not obliged to pay Ricky for his time and effort in making a complaint against it.

Complaint not upheld.

*Names have been changed.

See the full case study.