Why Did BOCI-Prudential Say Fees Were Hard to Cut?

What did CEO Chen Yuchang say on 21 June 2011?

BOCI-Prudential CEO Chen Yuchang told a media lunch current fees had little room to fall, but the firm would rebate 0.1% to accounts of HK$250,000 or more. Aiming to climb from fourth to number two, it had launched “My MPF Plan” the previous July for semi-portability — HK$140 million under management by end-May, about HK$200 million including signed transfers, HK$33 billion overall. Raising the minimum contribution floor, he said, would weaken low earners’ protection and hit the firm in unknowable ways.

What’s the lesson for workers?

If fees won’t fall on their own, workers must shop around — compare fees and performance at MPF fund comparison.