National is promising to allow KiwiSavers to invest in more than one provider and roll back some financial laws if it is elected to govern in October.
On Thursday, National's Commerce and Consumer Affairs spokesperson Andrew Bayly said his party would allow KiwiSavers to invest in more than one provider, claiming it will drive innovation, boost competition and put "downward pressure on fees".
Bayly said current rules force Kiwis to have all their KiwiSaver savings with one provider "limiting investment choices, and potential returns, for savers".
"As the sector grows and matures, some KiwiSaver providers are looking to diversify their investments into different classes of assets – such as start-ups and Build-to-Rent investments. However, under the current settings, savers who want to access these new investments are forced to shift all their savings to that provider – limiting choice and competition."
Bayly said KiwiSaver plays an "increasingly important" role in Aotearoa's investment environment as generations of savers continue to accumulate assets.
"But restrictions on savers and fund managers are pushing up fees and limiting investment opportunities," he said.
"Improving competition is the best way to put downward pressure on KiwiSaver fees."
Bayly said a National Government will also cut "financial red tape" such as the Credit Contracts and Consumer Finance Act (CCCFA) which he says has "proven unworkable".
"[The CCCFA] was supposed to go after predatory payday lenders, but instead has stifled access to credit and resulted in borrowers being subjected to highly intrusive questioning from their bank, with every purchase, membership, or subscription up for scrutiny," he said.
"Someone looking to start a business by extending their mortgage shouldn’t have to tell their bank which brand of cat food they buy or justify their Netflix subscription."
Bayly said National would maintain tight restrictions on predatory lenders - but "significantly reduce" the scope of changes to the CCCFA made by Labour.
"National will also repeal the recent Conduct of Financial Institutions Act, which was meant to manage financial misconduct, but will impose additional burdens on lenders, making credit more expensive and harder to obtain, even for basic services such as overdrafts and mortgages," Bayly said.
