Anna Wu Hopes Semi-Portability Drives Fee Cuts — Capping Report Due Next Month

This article is a rewrite of a report from October 2012.

MPFA chairwoman Anna Wu said in October 2012 she hoped MPF management fees would come down — with the new scheme allowing employees to change trustees once a year, sharper competition should push fees lower. Fee cuts had the chairwoman’s personal backing.

What did the chairwoman say?

Down, but not enough. Wu acknowledged management fees had dropped somewhat in recent years, but the extent was not satisfactory. She hoped competition among trustees under the new arrangement would keep pushing fees down.

When will fee-capping be decided?

Report next month. Wu said the authority would submit a report to the government next month on whether management fees could be capped by legislation. That report would decide whether a cap moved from proposal to law.

What is the lesson from 2012?

The chairwoman speaking is a weather vane. Wu’s 2012 remarks were the top of the official ladder addressing fees: no more dodging, a direct call for cuts. Lowering MPF charges went from public outcry and Consumer Council pressure to the chairwoman personally promising a report — pressure had finally reached the decision-makers.