Government Proposes Full Disciplinary Powers for MPFA: Reprimands, Fines, Licence Revocation
2011-08-01
The Financial Services and Treasury Bureau proposes vesting all disciplinary powers in the MPFA — reprimands, fines, suspension and deregistration — with frontline regulators actively joining disciplinary proceedings for consistency. Target: table the bill in Q4 this year, pass it within this LegCo term, so the Employee Choice Arrangement launches in the second half of next year.
The proposal
| Item | Detail |
|---|---|
| Powers vested | Reprimand, fine, suspend, deregister |
| Frontline regulators’ role | Active participation for consistency |
| Legal basis | Current administrative regime, suitably improved |
| New offence | Unregistered intermediaries barred from MPF selling and promotion |
| Supervisory powers | Inspection, investigation, discipline for registered-intermediary compliance |
| Consultation outcome | 13 submissions (28 Mar–28 Jul); most back legislation |
Companion piece: intermediary code of conduct
The MPFA is drafting a new code of conduct giving compliance guidance, with a draft for industry consultation in Q4.
Why the rush?
Because the Employee Choice Arrangement (semi-portability) is due in H2 next year — without statutory regulation, intermediary chaos will only magnify in the choice era. Teeth first, liberalisation after — that order can’t be reversed. Compare MPF funds’ fees and returns at MPF fund comparison.
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