Why Was MPF Semi-Portability Abruptly Halted?

Why Was MPF Semi-Portability Abruptly Halted?

On 30 September 2010, the MPFA confirmed it was shelving the Employee Choice Arrangement slated for early 2011, pending intermediary legislation. The market had heard April 2011; the MPFA had even formalised the name — then the sudden halt scrambled industry plans.

What was the reason?

MPF salespeople were scattered across banks, insurers, fund houses and IFAs under different regulators, raising conduct and mis-selling risks. The MPFA wanted statute-backed oversight to protect two million employees. John Tsang hoped for a bill before July 2012 and passage that year — at least a year’s delay.

How did the industry react?

Fidelity’s Luk Kim-ping saw both sides: more preparation time, but disrupted hiring for MPF-focused intermediaries. Gaius’ Choi Mei-fung was surprised and wanted clarity on licensing.

How long did workers wait for choice?

Until November 2012 in the end. Can’t wait to move accounts? Compare MPF funds on handling preserved accounts.