MPF Intermediary Regulation Bill Next Year — “Principal Intermediary” Concept; Licence Revocation for Serious Breaches

LegCo’s financial affairs panel discussed tougher MPF intermediary regulation on 4 April 2011. The government aims to complete legislation by mid-2012 and launch semi-portability in the second half; conduct-regulation lawmaking starts this year.

What’s the bill’s key feature?

The “principal intermediary” concept. Each firm must appoint a senior executive as the responsible person, ensuring effective monitoring systems. Lawmakers worried frontline salespeople could oversell while firms escape punishment — the concept targets exactly that gap.

How are individual agents regulated?

A set of conduct requirements, e.g. mandatory risk assessments for clients. Treasury permanent secretary Au King-chi said the MPFA could revoke licences for serious breaches.

Will fees fall sharply after legislation?

Not directly — but transparency rises. Democrat Kam Nai-wai pressed on high intermediary charges; Au said trustee fees have room to fall, and the MPFA is studying greater fee transparency so members can compare charges and fund prices, plus streamlined procedures to cut compliance costs. Compare current charges at MPF fund comparison.