The Mandatory Provident Fund Authority (MPFA) is considering setting up a public trustee company to compete with the current 19 MPF trustees to encourage lower fees.
The authority said it hopes setting up a public trustee would provide more funds choices for MPF members and push for stronger competition for the industry, which could eventually help reduce fees, reports the Hong Kong Economic Times.
Apart from the idea of setting up a public trustee, the authority is also considering setting up a legislative framework to regulate MPF fees by requiring all MPF trustees to disclose their expenses and incomes.
Anna Wu, the MPFA’s Chairman has agreed with both suggestions.