Management fees charged by Mandatory Provident Fund providers have room to recede further, Secretary for Financial Services and the Treasury Ceajer Chan Ka-keung said yesterday.

Chan told legislators such fees have dropped by 10 percent since the MPF Schemes Authority in 2007 posted a table of providers’ charges on its website.

“The growth of MPF fund value has beaten inflation since the scheme was launched in 2000,” Chan said.

” We hope to complete legislation by the end of this year to allow MPF members to move 50 percent of their assets to different providers each year.”

But the largest MPF provider, Hongkong and Shanghai Banking Corp, said it has no plans to cut management fees now. “There will be room for fee reduction when the fund pool continues to grow in size,” HSBC Insurance director and head of employee benefits Alex Chu Wing-yiu said.

HSBC has reduced management fees on some MPF fund products by up to 40 percent since March.

As of March 31, total net asset value of MPF funds in Hong Kong was HK$378.28 billion, about 30 times more than 10 years ago.

Market No2 BOCI-Prudential has announced a 0.01 percent fees rebate for MPF assets exceeding HK$250,000 in the year ending March 31.