Au King-chi: MPF fees have room to fall; Employee Choice may launch in next year’s second half

Financial Services and Treasury Bureau permanent secretary Au King-chi said the MPFA is going all out on the Employee Choice Arrangement, aiming to start legislating intermediary conduct rules this year, finish before LegCo’s summer recess next July, and launch MPF Employee Choice in the second half of next year.

How will fees fall further?

More fee transparency, simpler procedures, an electronic platform. Au said the government believes trustees’ MPF fees have room to come down; before Employee Choice launches, the MPFA is studying greater fee transparency so employees can compare charges and fund prices, and is discussing streamlined procedures with the industry to cut intermediaries’ compliance costs. MPFA chief executive Diana Chan said an electronic platform for client-data exchange between MPF companies would cost less than today’s paper-based handling, and she doesn’t expect companies to pass costs to customers. Chan added the authority will submit an MPF review report to the government, including when MPF assets may be withdrawn.

To compare MPF fees across trustees, visit MPF fund comparison.