MPF Funds vs Ordinary Funds: What’s the Difference?

How are MPF funds regulated?

Since the MPF system’s 2000 launch, the MPFA has been the lead regulator of MPF schemes — registering schemes, authorising constituent and pooled funds, approving and regulating trustees, and setting codes and guidelines for smooth operation. The SFC authorises MPF products. Investors should note MPF funds stem from a more conservative philosophy, differing from ordinary funds in regulation and investment restrictions.

How are MPF intermediaries regulated?

A company and its representatives must be regulated by at least one of the SFC, HKMA or Insurance Authority, plus meet other requirements, before registering as MPF intermediaries; the MPFA’s Code of Conduct for MPF Intermediaries applies alongside each regulator’s own code — both must be obeyed.

What should members watch when choosing?

Beyond returns, weigh fees, risk ratings and investment restrictions; compare funds at MPF fund comparison.