MPFA: Legislate First, Launch Semi-Portability Later — No Repeat of Lehman Mis-Selling

MPFA chief executive Diana Chantam says bank staff, insurance agents and securities brokers can all sell MPF products today, under different regulators — and the authority averages ten intermediary sales-practice complaints a year. After Lehman, sales tactics are under scrutiny, so the MPFA’s line is clear: regulate by law first, launch semi-portability after.

The regulatory timeline

Why so insistent?

Fear that semi-portability becomes a mis-selling trap. Without statutory regulation, workers lured into bad sales could seek judicial review — unthinkable, says Chantam. Beyond banning gift-based hard selling, long-term legislation is a must.

Too few employer choices — MPFA acts

Only about 6% of employers offer staff more than one trustee; the MPFA will write to employers urging more choice.

Regulation isn’t blocking progress — it’s fitting brakes before driving. Semi-portability touches millions of workers’ retirement money; a step slow beats a step wrong. Compare MPF funds’ fees and returns at MPF fund comparison.