Semi-Portability Shelved; MPFA Turns to Legislating 30,000 Intermediaries Instead

MPF semi-portability was due in 2011, but the MPFA found administrative means couldn’t properly supervise ~30,000 intermediaries or protect the public — so it was shelved. The MPFA now plans legislation to regulate intermediaries, with the framework tabled to LegCo’s financial affairs panel on 4 April 2011.

How would the law regulate them?

Conduct rules plus penalties — up to licence revocation. MPFA executive director Darren McShane said the bill would cover conduct and penalties, details still under negotiation. The existing three regulators (HKMA, SFC, Insurance Authority) would each supervise their licensed intermediaries, with the MPFA coordinating and handling public complaints before referring cases by type.

What about current intermediaries?

A two-year transition with annual training. After the law takes effect, currently registered intermediaries get two years’ grace, with mandatory annual training replacing the three-year licence renewal.

Any more fee cuts?

McShane said the MPFA keeps pressing trustees; the newest schemes already charge 1.6%, with room to fall — though the industry should set its own fees. Compare scheme charges at MPF fund comparison.