In the least surprising news story of the year to date KiwiBank announced last week its intention to merge its dual KiwiSaver operations into a single entity.
As I reported this January the only logical outcome post KiwiBank's $50 million buyout of the Gareth Morgan investment business was to shut its existing KiwiSaver scheme, which outsources funds management to AMP, in favour of the new purchase.
In the latest KiwiBank KiwiSaver prospectus, the bank says it hopes to complete the transfer "as early as September and, at the latest, before the end of the year".
KiwiBank's preferred option is to shift all of the members in its AMP-managed scheme across in bulk to the Gareth Morgan KiwiSaver if approved by the Financial Markets Authority (FMA).
The FMA-mandated method (which Fisher Funds, for example, utilised to absorb the Huljich scheme members) offers a simpler route to unity as members are given 28 days to submit any objections. If no objections are received and the FMA approves, the shift can go ahead without the explicit consent of each member.