In a bid to boost client numbers, BOCI-Prudential – Hong Kong’s second-largest provider of Mandatory Provident Fund services – will offer a rebate on its management fees.
The 0.1 percentage point rebate will be offered to all MPF members whose accounts are valued at more than HK$250,000, said chief executive Thomas Chan Yu-cheong.
BOCI-Prudential is the first among the SAR’s top five MPF providers to offer such a rebate, effectively immediately.
“The rebate is expected to attract more high-income customers after MPF members are able to choose their own providers from July 2012,” he said.
The government proposed lifting the lower income threshold of mandatory contribution of employee to HK$6,500 from HK$5,000, effective November 1. The higher income threshold will be revised to HK$25,000 from HK$20,000. The maximum monthly contribution will be revised to HK$1,250 from HK$1,000.
As at March 31, the average asset value of 2.51 million MPF members amounted to HK$150,529, according to the Mandatory Provident Funds Authority.
“A fee reduction for all MPF customers in the second half this year is unlikely, following a series of fee cuts in the industry earlier this year,” Chan said.
Market leader HSBC said it is studying a loyalty plan for its MPF business. It has no plans yet to offer a rebate on the management fee.