HSBC MPF’s Rare Street Offensive: 20% Off for Preserved Accounts

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

Twenty days from semi-portability, the usually quiet leader HSBC finally moved: rare street booths in MTR stations, courting preserved-account holders (old accounts left behind after job changes, renamed personal accounts from November) with up to 20% off.

What was HSBC’s play?

Move your preserved account, save up to 20% on management fees. HSBC Insurance said preserved-account transfers into its ValueChoice, SimpleChoice or EasyChoice plans earned up to 20% off fund management fees, with no transfer-amount or deadline limits. Booth staff filled “preserved-account information authorisation” forms for passers-by — preserved accounts only, no mention of next month’s new regime. No early rule-breaking.

How big was the preserved-account prize?

Over 4.1 million accounts — the main battlefield. Fidelity held 180,000 preserved accounts (plus 120,000 contributing-member accounts); its Hong Kong head Luk Kim-ping said assets were about 4.5% of the market, hoping semi-portability would lift share. Fidelity planned to double hotline staff to 20-plus and add fund choices, but not cut prices.

What should switchers weigh?

A six-to-eight-week investment gap. Luk warned transfers typically took six to eight weeks, with money invested in nothing meanwhile — a concrete cost. He also doubted a price war: MPF’s strict regime forced every operator to spend more on running it.

What is the lesson from 2012?

When even the year-silent leader hits MTR stations, you know 2012’s preserved accounts were gold. Four million old accounts were semi-portability’s first battlefield — no new contributions needed, just a name change. Workers should know: your old account is someone’s prize. Before moving it, ask what you’re getting.