MPFA to Consult on Regulating MPF Intermediaries by Year-End: Unlicensed Selling to Become Illegal

MPFA chief executive Diana Chantam says a consultation paper on regulating MPF intermediaries will come as early as year-end: anyone selling MPF products to workers without MPFA registration will be breaking the law. After gathering market views and drafting the bill, the aim is LegCo submission next year.

Consultation highlights

Why regulate now?

The Lehman minibonds lesson. Chantam says this year’s insurance-company push into MPF raised fears of Lehman-style mis-selling, hence the semi-portability pause until regulation is in place. The MPFA banned gift rebates to MPF clients back in September.

Any industry backlash over the pause?

Some insurers grumbled the sudden halt upset business plans, and some agents fear for jobs; but Chantam sees little impact and no major insurer discontent. She believes the MPF market is developing positively even without semi-portability.

Intermediary regulation is the precondition for semi-portability. Choice without regulation is a breeding ground for mis-selling. Compare MPF funds’ fees and returns at MPF fund comparison.