What Did the MPF Intermediary Regulation Consultation Conclude?

What Did the 2011 MPF Intermediary Regulation Consultation Conclude?

On 29 July 2011, the government published the consultation conclusions on tightening MPF intermediary regulation, aiming to table a bill in Q4 2011, pass it within the 2012 session, and launch the Employee Choice Arrangement in the second half of 2012. Built on the existing administrative regime, the proposal would ban unregistered intermediaries from MPF sales and give regulators inspection, investigation and disciplinary powers.

Why concentrate disciplinary power in the MPFA?

The revised plan gave the MPFA all disciplinary powers — reprimand, fines, suspension and deregistration — with frontline regulators feeding in investigations, to keep decisions consistent. The HKMA, Insurance Authority and SFC would handle day-to-day inspections and probes in their sectors; the MPFA would hear the intermediary’s representations before ruling.

What was the transition plan?

The roughly 29,000 registered intermediaries would get a two-year transition into the new statutory regime. The MPFA would also draft a new code of conduct for industry consultation in Q4 2011.

What did tougher regulation mean for members?

Statutory backing gave sales conduct the force of law, protecting over 2.5 million members. When choosing funds, compare MPF funds on fees and track records.