KiwiWRAP KiwiSaver Scheme is an innovative self-select KiwiSaver scheme designed to enable advisers to tailor portfolios specific to the personal needs of their investors.
KiwiWRAP KiwiSaver Scheme gives investors choice and reporting can be integrated seamlessly with an investor’s non-KiwiSaver portfolio
The KiwiWRAP KiwiSaver Scheme helps advisers bring together the final piece of an investor’s wealth management world. Advisers are able to monitor all portfolios in one place and have the ability to share information with investors, all through one login.
Advisers can implement consistent portfolio recommendations across their KiwiSaver and private wealth services, so that advisers can be confident in meeting the investor’s needs and expectations.
Investors are able to join the Scheme through an online application, which simplifies the process. If the investor wants to open an investment account on Consilium Wrap, this can be completed in one simple onboarding process.
Advisers have always believed financial advice is important to help investors reach their retirement goals.
The KiwiWRAP KiwiSaver Scheme gives advisers the ability to do their very best work for their investors and be remunerated according to the level of service provided, not what is dictated by the product manufacturer.
The value of advice has never been more important. Recent market volatility highlights the importance of having an adviser to help with those decisions that may have a long-term impact on the value of investors’ investments.
Over 400 investment options
Buy shares in many of the world’s largest companies
Access to leading fund managers
Transparency of fees and taxes
Flexibility to cater for investor’s specific investment requirements
Match investments with the desired level of risk
Align KiwiSaver recommendations to investor’s social responsibility preferences
Integrate KiwiSaver with other investment offerings
Ability to change investments as investor’s circumstances change
Accessible only through accredited advisers
Ability to work with eligible investors per Financial Markets Conduct Act 2013
Designed for larger balances*
*Minimum $50,000 initial balance from existing KiwiSaver and/or cash contribution
Consilium are committed to supporting financial advisers and offer a number of resources to assist advisers with the KiwiWRAP KiwiSaver Scheme.
Consilium provides a range of support and training materials. These including example KiwiSaver SOA’s, videos and step-by-step guides on how to use the KiwiWrap KiwiSaver Scheme. In addition, a simple and informative investor brochure is available to explain the features and benefits of the KiwiWRAP KiwiSaver Scheme.
Advisers using the KiwiWRAP KiwiSaver Scheme are required to provide investors with a risk indicator, personalised to the portfolio that the adviser has recommended. Consilium provides a tool that calculates the risk indicator upon the adviser entering the portfolio details.
Getting your adviser firm set up to start using the KiwiWRAP KiwiSaver Scheme is a simple process. There are four broad steps:
Consilium conducts due diligence on adviser firm. See FAQ for more information on the due diligence process.
Agreements prepared and signed
Adviser firm receives access to Consilium Wrap
Adviser firm receives full training
Under the KiwiWRAP KiwiSaver Scheme, advisers are required to give personalised financial advice to each investor before they join the Scheme. Excluded are eligible investors (as defined in the FMCA 2013), who do not need to first receive personalised financial advice but must still access the Scheme via a Consilium-accredited adviser.
This advice must be documented and provided to Consilium as part of the onboarding process. The advice needs to cover the six main areas:
Coming soon
Consilium collects and reviews due diligence information on each advisory firm before they are able to enter into an Adviser Business Agreement and be accredited to use the KiwiWRAP KiwiSaver Scheme.
The due diligence process involves collecting and reviewing the following information:
Consistent with a general Wrap account, advisers enter and monitor orders, including rebalancing. Most investors will make regular contributions into their KiwiWRAP KiwiSaver Scheme portfolio, which can be set up to automatically invest as per their Investment Direction.
The KiwiWRAP KiwiSaver Scheme will provide reports to members on a quarterly basis. The report includes a valuation, transaction details, fees paid and a rolling annual performance figure. From the first anniversary of the Scheme, the report will also include an updated risk indicator specific to their portfolio. KiwiWRAP KiwiSaver Scheme will also provide a Scheme annual report to all members. If an investor requests additional reporting, the adviser can create this through Consilium Wrap.
Members of the KiwiWRAP KiwiSaver Scheme must have an adviser, accredited by Consilium, to remain in the Scheme. If Consilium is made aware that a member wants to change their adviser, Consilium will ask the member to confirm in writing who their new adviser is.
If the member does not want a new adviser, or is changing to an adviser not accredited to use the KiwiWRAP KiwiSaver Scheme, they will need to transfer to another scheme. If this process is not actioned by the member, the member will be unable to transact. All Scheme investments will need to be realised for market value at the time in order for a member’s savings to be transferred out. This process is covered in the Scheme’s governing documents.
At this stage, the KiwiWRAP KiwiSaver Scheme is not able to support the direct transfer of Australian superannuation funds. However, investors can transfer in funds from a New Zealand provider that were previously held in an Australian superannuation scheme. The KiwiWRAP KiwiSaver Scheme will record the details of how much was transferred from the Australian scheme, as these funds cannot be used for any withdrawals, unless allowed under the KiwiSaver Rules.
Yes.
Advisers can develop, recommend and use their own model portfolios.
The current criteria for investments to be eligible for inclusion in the Investment Options Supplement, are detailed in the Product Disclosure Statement.
It is most often the maximum redemption timeframe that causes an investment to be ineligible. As of 1 April 2020, KiwiSaver schemes are required to process scheme to scheme transfers within ten business days. In a self-select scheme, this means that all of the investments in an investor’s portfolio must be able to be redeemed to NZD cash within eight business days. Consilium has no control over individual investment redemption timeframes.
If an adviser would like an investment added to the Investment Options Supplement, a request in writing can be made to info@kiwiwrap.co.nz. The Consilium investment team will process these requests and assess the investment’s eligibility. Consilium’s assestment is final.
The Investment Options Supplement is updated quarterly with new investment options (the details of existing investments are updated annually). The cut off for requests is ten business days before each quarter end. If the request is successful, the adviser will be informed. If the request is unsuccessful, the adviser will be informed with details as to why the investment is ineligible.
Investments can only be removed from the Investment Options Supplement if they no longer meet the eligibility criteria. This is assessed annually. If an investment is removed, advisers will be notified and will have 20 business days to sell it from the investor’s Personal Plan and re-allocate the funds to another investment selection made by the investor. If this is not in progress by the 20th business day, Consilium will sell the investment and inform the member directly.
Yes, with written investor consent. Generally, this involves documenting the recommendation to the investor and having them confirm back, in writing, that they want to proceed. Written instruction from the investor is required regardless if the adviser has a DIMS licence or not, due to the KiwiWRAP KiwiSaver Scheme’s self-select nature. Written instructions can be accepted via email. All records of investment direction changes, and investor approval, need to be saved and made available to Consilium on request.
Asset class names are prescribed in accordance with Schedule 4, clause 1.4 of the Financial Markets Conduct Regulations (FMCR) 2014, and must be adhered to under the KiwiWRAP KiwiSaver Scheme.
If asset classes are named differently on Wrap portfolios outside of the KiwiWRAP KiwiSaver Scheme, reports may show two lines for the same investment when running reports grouped by asset class.
Each year investor will receive seven reports relating to their investment in the Scheme. Two reports are produced by the custodian, FNZ Custodians Ltd (Custody report), and five reports are provided by Consilium as Manager of the Scheme (Quarterly statement and Annual report).
For full details on the roles and responsibilities of the different parties, refer to the Other Material Information Document.
Adviser Firms are responsible for providing and documenting personalised advice to investors, including investment recommendations, objectives and policies. Advisers also implement and monitor the investors’ Investment Direction in a Personal Plan and ensure that it continues to suit the investors’ needs. An agreement for services needs to be entered into between investors and advisers.
Consilium NZ Limited (Consilium) is the Manager of the KiwiWRAP KiwiSaver Scheme and the operator of Consilium Wrap, where investments can be viewed. Consilium works with over 100 independent and professional advisers. Consilium does not handle investor funds and is not a custodian. You can find out more about Consilium and Consilium Wrap at www.consilium.co.nz and www.consiliumwrap.com.
FNZ Custodians Limited and FNZ Limited are custodian and administrator of the Scheme respectively, and jointly referred to as FNZ. FNZ provides custody and wrap software services to global financial institutions and to several large New Zealand banks. FNZ Custodians Ltd holds investor funds in its name as a bare trustee for the benefit of the Scheme members. You can find out more about FNZ at www.fnz.com.
Trustees Executors Limited is the Supervisor of the KiwiWRAP KiwiSaver Scheme. The Supervisor is responsible for ensuring that Consilium NZ Limited as the Manager and FNZ Custodians Limited as the Custodian of the Scheme are performing their respective duties and acting in the best interests of the Scheme’s members. Both the Manager and the Custodian provide regular detailed Scheme reporting to the Supervisor. You can find out more about Trustees Executors Limited at www.trustees.co.nz.