A KiwiSaver provider which makes investments in accordance with the Islamic principles of the Muslim religion is suing the Financial Markets Authority (FMA).
Amanah Ethical, which claims to have the only KiwiSaver plan that from the outset has been "truly ethical and Shariah-compliant", has written to its members advising it had for some time been experiencing difficulties with the FMA and the patience of its directors has "run out".
The advisory, signed by AmanahNZ KiwiSaver and Amanah Trust Management managing director Brian Henry, a barrister and commercial litigator, said it had this week sued the FMA "for making decisions that affect Amanah without giving Amanah the opportunity to be heard".
"Amanah believes that the FMA has failed on two occasions to treat it according to New Zealand law which requires all decisions by a regulator to comply with the rules of natural justice," Henry wrote.
The directors had sought to resolve the issues with the FMA but "that patience ran out" after a letter was received from the FMA chief executive.