Why Did MPF Semi-Portability Stall at the Finish Line?

Why was semi-portability delayed in 2010?

In September 2010, reports said MPF semi-portability would slip from April 2011 to 2012 at the earliest, as the government needed legislation clarifying intermediary oversight. The MPFA board worried that having the HKMA, SFC and OCI jointly supervise intermediaries after launch would breed confusion, and urged a law spelling out each body’s role; the legislative process would take at least a year.

How did the industry react?

MPFA director Wong Kwok-kin, also an HKFTU vice-president, backed clear legislation, noting the MPFA then policed intermediaries only through guidelines with no legal force. He cautioned that the sales audience would become over two million employees — some with limited education — so caution was justified, lest workers’ life savings evaporate.

How did the MPFA curb the client-poaching war?

The MPFA banned trustees from giving gifts to lure switchers, while allowing cash rebates and fee discounts — effectively pushing trustees to cut management fees. Members comparing charges should visit MPF fund comparison.