Why Did Lawmakers Demand an MPF Fee Cap?

Why did calls for a fee cap emerge in December 2010?

At a December 2010 City Forum, academics and lawmakers urged a full MPF review, slamming some products’ 4% management fees — guaranteed funds worst — and demanding a fee cap or performance linkage. FTU’s Wong Kwok-hing said the government shouldn’t offload responsibility to the market; the fund industry proposed tax incentives for 2.5% extra voluntary contributions each side.

Why do high fees matter?

Without lower fees, workers won’t top up — extra money just feeds managers’ commissions; low earners have nothing left to add after mandatory deductions.

How to avoid high-fee funds?

Compare expense ratios at MPF fund comparison and choose fairly priced schemes.