Intermediary oversight to sit with MPFA; bill targeted for Q4 LegCo tabling

To get MPF “semi-portability” running in the second half of next year, the government and the MPFA are drafting legislation, aiming to table the bill in LegCo in Q4 and pass it within this legislative session. The plan hands all disciplinary powers to the MPFA, while the HKMA, Insurance Authority and SFC police sales and marketing in their own sectors.

How has consultation gone?

Thirteen submissions, mostly supportive. A Financial Services and the Treasury Bureau spokesman said consultation began early this year and runs to next month’s end; thirteen group submissions have arrived so far, most backing legislation before the Employee Choice Arrangement launches. Drafting will reflect the feedback.

How will the new regime work?

MPFA as boss, frontline regulators as investigators. Building on current administrative arrangements: new penalties will ban unregistered MPF selling and promotion; a statutory regime will govern intermediaries, better protecting 2.5 million-plus scheme members. Before disciplining anyone, the MPFA will weigh the frontline regulators’ findings and recommendations; those de-registered can be barred from re-entering the MPF market for a set period. A new intermediary code of conduct goes out for industry consultation in Q4.

Two-year transition for incumbents. About 29,000 people currently sell MPF under administrative registration; they must meet statutory conduct and continuing-education requirements during the transition.

To pick the right provider under semi-portability, visit MPF fund comparison.