Labour's Commerce spokesperson Lianne Dalziel says Labour will support an expansion of the regime that currently provides protection for those investing in the default KiwiSaver schemes to all KiwiSaver providers.

Lianne Dalziel said that when KiwiSaver was first introduced, the compulsory enrolment (even with an opt out) and the absence of a government guarantee meant that a higher level of assurance had to be offered to those investors who did not wish to choose their own scheme.

"That is why the regulation was much stricter around the default providers," she said.

"The Government was confident that general rules would be sufficient for other providers, while the review of the Securities Act was being undertaken.

"I accept, however, that the revelations around Huljich's activities have the potential to undermine confidence in the KiwiSaver scheme, and that's why steps should be taken now," Lianne Dalziel said.

"I hope that the regulators complete their investigations into this case quickly, especially in light of a high profile candidate for the Auckland mayoralty publicly wiping his hands of any responsibility.

"I remain deeply concerned about the concept of a 'celebrity' director some managed funds and finance companies have been using to offer a level of assurance that is not matched in reality, and I doubt if the Government's decision today to fast-track work to ensure the integrity of KiwiSaver will address that issue."

Lianne Dalziel said she remained unconvinced the Government was actually committed to implementing recommendations of the Capital Market Development Taskforce.

"Originally the Government said Prime Minister John Key would lead the response to the report. Ever since then Mr Key has been careful to delegate all responsibility to Mr Power. That seems to be the extent of Mr Key's commitment."