Why Was MPF’s “Semi-Portability” Postponed Again?

Why did the government shelve MPF reform in 2011?

In July 2011, the government confirmed the Employee Choice Arrangement was postponed indefinitely because regulating MPF intermediaries needed more time. Under Secretary for Financial Services and the Treasury Julia Leung said on radio that the scheme, originally set for a 2011 launch after LegCo passed the Mandatory Provident Fund Schemes (Amendment) Bill 2009 the previous July, was on hold. It would have let employees switch fund managers once a year, promising better service and lower charges.

What was unfinished on intermediary regulation?

The government planned consultation papers on regulating MPF intermediaries for late 2011 or early 2012, and wanted to delineate the HKMA, SFC and OCI’s responsibilities clearly before implementation. While waiting, members can shortlist trustees at MPF fund comparison.

What did the MPFA propose instead?

The MPFA said that to protect over two million employees, it had proposed legislating to reinforce existing intermediary regulation, plus measures to boost industry competition and employee choice.