Unregistered Selling of MPF Banned: MPFA to Become Intermediary Registrar

In December 2011, Wen Wei Po reported that the government planned to launch MPF Employee Choice on 1 November 2012 while proposing law amendments to tighten regulation of MPF intermediaries, with the bill to be gazetted that week. It was the first time since MPF began in 2000 that criminal sanctions would draw a red line around MPF sales and marketing — unregistered intermediaries touching MPF sales would be breaking the law.

Who is allowed to sell and market MPF products?

Under the amendment proposals announced in December 2011, only registered MPF intermediaries may sell and market MPF products; the bill would introduce criminal sanctions banning unregistered intermediaries from such activities. The MPFA would serve as the intermediary registration body, making rules and imposing disciplinary sanctions, with over 2.5 million MPF members expected to be better protected.

Criminal Sanctions Draw the Line

A government spokesman said the bill would introduce criminal sanctions prohibiting unregistered MPF intermediaries from selling and marketing MPF products, alongside a comprehensive regulatory regime for intermediaries. MPF sales would no longer be open to anyone — registration and disciplinary oversight would be mandatory.

MPFA as One-Stop Registrar

Under the new regime, the MPFA would act as the intermediary registration body, responsible for rule-making and disciplinary action. The move was closely tied to Employee Choice: once employees could choose their own MPF schemes, sales and marketing to more than 2.5 million members would intensify, so the regulatory framework had to come first.

Cracking Down on Employer Defaults in Parallel

The bill also proposed tougher action on defaulting employers: an employer who failed to pay MPF contributions and contribution surcharges as ordered by a court would commit an offence. Together with intermediary regulation, the amendments aimed to better protect Hong Kong’s 2.5 million-plus MPF members.

Members can learn about their MPF rights at the MPFA education hub or by asking their trustee.