Why Did Hong Kong Plan a Law to Regulate MPF Intermediaries?

Why Legislate for MPF Intermediaries?

To prepare for the Employee Choice Arrangement expected in the second half of next year, the Financial Services and Treasury Bureau proposed a statutory regime for MPF intermediaries to better protect scheme members. The bureau submitted its legislative proposals to LegCo’s financial affairs panel.

What Did the Proposals Cover?

The government proposed an intermediary registration system, banning unregistered persons from MPF product sales and promotion as a criminal offence, and empowering regulators to police intermediary conduct. Existing registered intermediaries would get a two-year transition; registration would last for life but require annual fees, annual returns, and continuing education each year.

Who Would Regulate at the Front Line?

The MPFA would keep setting industry standards and act as the registration body, while the HKMA, the insurance regulator, and the SFC would serve as frontline regulators. Penalties would scale with the severity of breaches — from reprimands to capped fines, up to temporary or permanent licence revocation.