Enhanced Regulation of Mandatory Provident Fund Intermediaries

Q1. What is the outcome of the consultation on the legislative proposals on the regulation of MPF intermediaries?

A1. The Consultation Paper was published in end March 2011. As at 28 July 2011, we have received a total of 13 written submissions from various organizations. Respondents include industry groups, labour unions, the Consumer Council and professional bodies. There is general support for enhancing the regulation of Mandatory Provident Fund (“MPF”) intermediaries before implementation of the Employment Choice Arrangement (“ECA”) and the majority of respondents did not indicate disagreement with the proposal that the statutory regulatory regime be established.

Why regulate before the Employee Choice Arrangement?

The ECA lets employees transfer contributions to a provider of their choice each year — intermediaries’ sales practices directly shape workers’ decisions, so tighter regulation protects members from being misled. Under a statutory regime, intermediaries must meet stricter conduct requirements.

What should MPF members watch for?

When approached by intermediaries, independently compare fund fees and performance — never decide on verbal promises alone. Learn about intermediary regulation and your rights via MPF educational resources, and compare objective MPF fund data.