Why Was MPF Semi-Portability Delayed Again and Again?

Why Was MPF Semi-Portability Delayed Again and Again?

In January 2011, the industry slammed the government for foot-dragging on raising contribution caps and launching “semi-portability”. Two wild cards: the SFC chief’s June departure and the Insurance Authority’s mooted 2013 independence, clouding the regulatory model.

Why was intermediary regulation the crux?

“One industry, many regulators” — the SFC, Insurance Authority, HKMA and MPFA each policed a slice, with no statute behind the rules, forcing semi-portability’s postponement. The market worried that making the MPFA the all-powerful regulator would, given its headcount, leave a “toothless tiger”.

What did the industry fear most?

That the reform would be delayed indefinitely, wasting their preparations and investment. Workers meanwhile stayed stuck with their employers’ choices.

When did it finally launch?

After the twists, the Employee Choice Arrangement took effect in November 2012. Compare MPF funds to understand your options when changing jobs.