KiwiSaver provider Simplicity has been ordered to remove advertising material by the investment regulator after it was found to be misleading. 

The Financial Markets Authority said it had directed Simplicity to remove its "All Greys" advertising campaign after it was found to have breached fair dealing provisions. 

The advertisements included the statement; "get out of the game when you want to, retire with up to 20 per cent more than the average KiwiSaver plan", and encouraged people to switch their KiwiSaver fund to Simplicity. 

But the FMA said the statement was unsubstantiated and likely to mislead or deceive under the Financial Markets Conduct Act 2013 (FMC Act). 

Simplicity's claim was based off the present value of 45 years worth of paying its KiwiSaver fees relative to a higher average KiwiSaver fee. 

But the FMA said the assumptions Simplicity relied on were not reasonable, particularly that there would be no changes to fees over a 45-year period given there had been significant recent changes in fees charged by KiwiSaver providers. 

The assumptions underpinning the claim were also not prominently disclosed in advertising material so the public was unable to query the assumptions. 

The advertisements appeared on TV channels, Facebook, YouTube, billboards, internet display banners, and Simplicity's website between August to October last year. 

Paul Gregory, FMA director of investment management, said advertising could strongly influence investors' decision-making. 

"It is vital that providers ensure their marketing materials are factually accurate and don't mislead. 

"The direction holds Simplicity accountable to investors and means we have additional responses available if Simplicity does not make the necessary improvements or fails to comply with the direction order." 

He acknowledged Simplicity had withdrawn the campaign promptly, accepted responsibly and engaged with the FMA constructively, without defensiveness. 
 
"This case sends a signal to the financial services sector that we will continue to use our powers to sanction providers who make misleading claims in their advertising, as set out in our guidance." 

The Herald has requested comment from Simplicity chief executive Sam Stubbs on the direction.