MPF semi-portability eyes next year as intermediary regulation goes to LegCo

The government’s suspension of MPF semi-portability last year disappointed workers. Next month it will table papers at LegCo on legislating MPF intermediary regulation to protect workers — putting semi-portability on track for next year.

Why regulate intermediaries by law?

Their sales targets grow from 200,000 employers to 2 million workers. Current regulation rests on an administrative regime; MPFA executive director Hendena Yu said legislation is needed to pre-empt judicial reviews by penalised intermediaries. Semi-portability was due next month but was deferred last September precisely because no law governed intermediaries.

How do citizens complain about intermediaries?

Complain to the MPFA first; it coordinates with the relevant regulator. Intermediaries must be licensed or recognised by the HKMA, SFC or Insurance Authority, then registered with the MPFA. After legislation, the three keep their supervisory roles; the new law empowers them to punish misconduct, but licence revocation stays with the MPFA. The four bodies will study harmonised penalties to avoid confusion.

How must intermediaries adapt?

A two-year grace period to re-register after the ordinance takes effect. Intermediaries must then file annual continuing-education reports; the three-year licence renewal cycle will be scrapped. Hong Kong has 29,000 MPF intermediaries.

After semi-portability, employees choose their own trustees for the employee-contribution portion. Before moving, compare scheme fees at MPF fund comparison or learn the arrangement at the MPF education centre.