MPF system to be reviewed

The Mandatory Provident Fund Schemes Authority will commission an independent consultancy study to simplify administrative processes to reduce fees.
Authority chairman Anna Wu said today the level of fees of fund schemes has always been a matter of public concern and there is room for further reductions, especially since the value of assets in the fund system has more than doubled over the past five years to $390 billion.
She said she hoped the study will assist the authority in understanding more about trustees’ operating costs and in proposing measures to reduce the costs to give more room for further reductions.
The authority will place newspaper advertisements tomorrow inviting expressions of interest for an open-tendering exercise for the consultancy study. The report is expected to be completed by mid-2012.
According to the authority’s assessment, the costs of scheme administration functions constitute the largest part of the fees for fund schemes.