Five Self-Defence Moves for MPF Switching — Don’t Let Agents Take You for a Ride

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

The Employee Choice Arrangement took effect on 1 November 2012, and the MPFA expected intermediaries to court employees more aggressively. Facing sales pitches, members switching MPF need self-defence — lest they be taken for a ride and lose money. The MPFA’s five moves:

Move 1: Check the agent is registered

Unregistered selling is illegal. From 1 November a statutory registration regime applied: selling MPF schemes or giving advice without registration is an offence. Agents must show a business card with registration number, name and company; members can verify via the MPFA’s register online or by phone. Agents then were 75% insurance, 24% banking, 1% securities — overseen by the OCI, HKMA and SFC respectively.

Move 2: Ask exactly about fees

Agents can’t charge you — or bribe you to switch. Intermediaries generally may not charge members fees or commissions; trustees may not offer rebates, gifts or perks to induce switching. Ask directly: does the agent earn different rewards for different schemes? Any commission?

Move 3: Record confirmation of fund choices

Picking a higher-risk fund requires recording. Agents must first assess members’ investment objectives and risk tolerance via questionnaire. If your chosen fund’s risk exceeds your assessed level, the session must be recorded — or confirmed by recorded post-sale call or written confirmation.

Move 4: Analyse and compare before switching

Think thrice, don’t rush. Before moving accrued benefits, compare trustees’ services and schemes: demand full explanations of scheme and fund features, check fees and whether the risk level suits you, read the latest offering documents and fund factsheets. Guaranteed-fund members beware: switching can void the guarantee.

Move 5: Never sign blank documents

Keep copies of everything. When signing, never sign blank or incomplete forms, documents or cheques; demand copies of everything signed. Without your written authorisation, an agent may not check your account data with the MPFA.

What is the lesson from 2012?

Bigger choice demands better self-defence. Semi-portability gave workers switching rights — and opened the sales floodgates. The five moves boil down to one line: verify, ask about money, record, compare, never sign blanks. Self-defence is the price of choice.