MPF intermediaries face legislation; semi-portability deferred

MPF semi-portability, due next April, is deferred — the MPFA says protecting 2.2 million employees requires legislating MPF intermediary regulation first, and clarifying the roles of the Insurance Authority, MPFA and SFC so no one passes the buck when things go wrong.

Why the deferral?

A regulatory gap over intermediaries can’t be left open. The MPF amendment bill passed last July lets employees move personal-account contributions to a chosen trustee once a year. But the government backed the MPFA’s call to legislate intermediary oversight first. Legislators called the MPFA late to the problem; bankers and academics welcomed the delay.

What does the government say?

Deputy financial services secretary Julia Leung: the delay protects investors. A consultation paper on intermediary regulation and regulators’ roles is due by year-end or early next year; legislation takes time, so no launch date can be given yet.

What does the industry say?

Manulife: the delay is a pity for employees and workers. The Employee Choice Arrangement was meant to give members real choice of providers — deferred, workers still can’t choose.

For the Employee Choice Arrangement, visit the MPF education centre, or compare trustee fees at MPF fund comparison.