Government announced tougher Mandatory Provident Fund regulation

Legislative proposals have been raised to improve the regulation of sales and marketing activities of MPF intermediaries.

According to Hong Kong Information Services Department, the Financial Services & the Treasury Bureau and the MPFA are preparing legislative proprosals as well.

These proposals aim to provide for the establishment and operation of an electronic platform to facilitate the transfers of benefits among the trustees and to strengthen deterrence against default MPF contributions by employers.

The Government wants to table the bill at the council this year to have the legislative procedure completed next year, said Permanent Secretary for Financial Services & the Treasury Au King-chi.

The MPFA, after reviewing the regulatory regime of MPF intermediaries, recommended that the existing administrative arrangement be strengthened by statute to ensure the availability of an effective deterrent against MPF sales and marketing activities by unregistered people.