The Government is set to fast-track tougher regulations for KiwiSaver providers after Huljich Wealth Management's alleged manipulation of its performance measures.

Following comments yesterday from Prime Minister John Key about the need to provide greater confidence to the 1.3 million New Zealanders with KiwiSaver accounts, Commerce Minister Simon Power confirmed he expected to announce "further details" of plans to expedite tougher regulations for the industry today.

Power is currently considering the Government's response to last year's Capital Markets Taskforce recommendations which included moves to improve the governance, disclosure and transparency of the managed funds industry including KiwiSaver providers.

However, potential failings in the regulatory framework for the voluntary savings scheme have been highlighted as high profile fund manager Peter Huljich last week stepped down as managing director and chief investment officer of his firm following allegations he sold shares into the company's KiwiSaver funds at a discount to ramp up apparent returns and attract more investors.

Early yesterday, Prime Minister John Key told NewsTalk ZB the Huljich affair had underlined "the strong theme" that came out of the Capital Markets Taskforce's work.

With growth in KiwiSaver funds under management likely to be exponential, "the Government does want to feel comfortable that the rules governing KiwiSaver are appropriate and reflect what we would expect to be the genuine obligations on managers of KiwiSaver accounts on that basis", Mr Key said yesterday.

Mr Power said that with the taskforce identifying "flaws in the regulatory framework around managed funds, including KiwiSaver", the Government was considering moves to tighten regulation of the scheme. But critics have observed the relevant recommendations - which until now have appeared to be tied to a lengthy review of the Securities Act - are unlikely to yield tangible results for some time. Mr Power said "events of recent weeks have highlighted the need to move faster to ensure the integrity of KiwiSaver is maintained and that there is transparency for investors".

"You can expect further details tomorrow," he added.

Huljich Wealth Management's KiwiSaver scheme has 70,000 members and more than $117 million invested. It marketed itself heavily on its top performing results and the involvement of Auckland mayor John Banks and former Reserve Bank Governor and National Party leader Don Brash, who took over from Huljich as managing director last week.

As a small KiwiSaver fund, the firm was not subject to the same reporting requirement. It is being investigated by the Securities Commission and the Government Actuary over the allegations.