Mandatory Provident Fund Schemes Authority 強制性公積金計劃管理局
MPFA urges MPF industry to vote in the District Council Election
| Statutory functions
MPF Schemes Authority, 24-Nov-2023
Comment: disappointing that the MPFA is being abused in this way. Its statutory functions are defined by law. Regulating retirement schemes has nothing to do with promoting elections. It is perhaps a sign of desperation that the Government is leaning on statutory bodies to do this, but the MPFA board should know better.
MPF Schemes Authority, 24-Nov-2023
Comment: disappointing that the MPFA is being abused in this way. Its statutory functions are defined by law. Regulating retirement schemes has nothing to do with promoting elections. It is perhaps a sign of desperation that the Government is leaning on statutory bodies to do this, but the MPFA board should know better.
HK MPF system charges premiums for cheap index funds
| Scrap the MPF
Bloomberg, 27-Jun-2019
Webb-site estimates that about one third of all the returns generated by MPF assets so far has vanished in fees to the managers. MPF means Mandatory Payment of Fees - you cannot choose to manage your own account. Even with managed funds, an ETF like TraHK charges only about 10% of what the MPF index funds charge. The system remains an invasion of the free market and should be scrapped. We first wrote about the underperformance of the MPF HSI funds against the index back in 2005 in our article "Scrap the MPF".
Bloomberg, 27-Jun-2019
Webb-site estimates that about one third of all the returns generated by MPF assets so far has vanished in fees to the managers. MPF means Mandatory Payment of Fees - you cannot choose to manage your own account. Even with managed funds, an ETF like TraHK charges only about 10% of what the MPF index funds charge. The system remains an invasion of the free market and should be scrapped. We first wrote about the underperformance of the MPF HSI funds against the index back in 2005 in our article "Scrap the MPF".
SFC fines FWD Life Insurance HK$2.4m for understaffing
SFC, 8-Jan-2019
Perhaps FWD stands for "Fund Without Drivers".
SFC, 8-Jan-2019
Perhaps FWD stands for "Fund Without Drivers".
Ex-sales manager of ACE (now Chubb) Life Insurance charged with commissions fraud; 5 people charged with pretending to leave HK to cash out their MPF.
ICAC, 10-Jul-2018
ICAC, 10-Jul-2018
Solving the MPF-LSP offset problem, again
The HK Government fails to identify the obvious solution and instead pursues a doomed approach of perpetuating MPF plus LSP. That will either result in taxpayers fully funding a windfall to existing employees or the Government losing a judicial review for overriding the implied terms of existing employment contracts and violating employers' legitimate expectation of not having to pay twice. (30-Mar-2018)
The HK Government fails to identify the obvious solution and instead pursues a doomed approach of perpetuating MPF plus LSP. That will either result in taxpayers fully funding a windfall to existing employees or the Government losing a judicial review for overriding the implied terms of existing employment contracts and violating employers' legitimate expectation of not having to pay twice. (30-Mar-2018)
Re Damien Kwok Hiu Chun
HK Court of First Instance, 16-Feb-2017
Mr Kwok applied to exclude from his bankruptcy estate the Long Service Payment he had received, which his employer had recovered from its MPF contributions. The application was dismissed, but he is now granted leave to appeal to the Court of Appeal.
HK Court of First Instance, 16-Feb-2017
Mr Kwok applied to exclude from his bankruptcy estate the Long Service Payment he had received, which his employer had recovered from its MPF contributions. The application was dismissed, but he is now granted leave to appeal to the Court of Appeal.
Submission to Public Engagement Exercise on Retirement Protection
We call for abolition of non-means-tested schemes, staggered subsidies for public healthcare and a deployment of the savings on a higher socal safety net and better healthcare. HK can't pursue a universal handout without breaching the Basic Law, and even if it could, the Laffer Curve may make it unsustainable as taxable profits and earnings would shift away. Finally, the MPF is a costly interventionist failure that should be scrapped, and if it is not, then LSP must be phased out to allow full portability of MPF assets. (21-Jun-2016)
We call for abolition of non-means-tested schemes, staggered subsidies for public healthcare and a deployment of the savings on a higher socal safety net and better healthcare. HK can't pursue a universal handout without breaching the Basic Law, and even if it could, the Laffer Curve may make it unsustainable as taxable profits and earnings would shift away. Finally, the MPF is a costly interventionist failure that should be scrapped, and if it is not, then LSP must be phased out to allow full portability of MPF assets. (21-Jun-2016)
Jump for joy - MPF is taking more
A careful analysis of a poster we received in the mail leads us to only one conclusion... (15-Apr-2014)
A careful analysis of a poster we received in the mail leads us to only one conclusion... (15-Apr-2014)
HK Chief Executive questioned about David Webb's article on MPF-LSP offset
HK Government, 23-Jan-2014
HK Government, 23-Jan-2014
Solving the MPF-LSP offset problem
We explain the historical context of the Long Service Payment and the offset against employers' Mandatory Provident Fund contributions, which is now an impediment to full portability, efficiency and lower costs in the MPF system. We provide a solution to this problem which, while not cost-free to employers, is better than the political alternatives, so they had better support it. (21-Jan-2014)
We explain the historical context of the Long Service Payment and the offset against employers' Mandatory Provident Fund contributions, which is now an impediment to full portability, efficiency and lower costs in the MPF system. We provide a solution to this problem which, while not cost-free to employers, is better than the political alternatives, so they had better support it. (21-Jan-2014)
ICAC and DoJ to LegCo: please can we have some money to prosecute Rafael Hui & the Kwoks?
HK Legislative Council, 7-Nov-2012
So what happens if LegCo says no? Would this amount to perverting the course of justice?
HK Legislative Council, 7-Nov-2012
So what happens if LegCo says no? Would this amount to perverting the course of justice?
Former Chief Secretary and four others face ICAC charges of bribery and misconduct
ICAC, 13-Jul-2012
ICAC, 13-Jul-2012
Bill to enhance regulation of Mandatory Provident Fund intermediaries' activities to be gazetted
| The Bill
HK Government, 6-Dec-2011
HK Government, 6-Dec-2011
Government presents legislation to increase minimum and maximum relevant income levels for MPF
HK Government, 14-Jun-2011
HK Government, 14-Jun-2011
MPFSA reveals result of review of min/max income levels for MPF
HK Government, 16-Feb-2011
7 months after the review was submitted to Government, it is revealed that the recommendations are HK$5.5k (up from $5k) for the minimum relevant income below which, employees would not contribute and $30k cap (up from $20k) above which, the Government would stop interfering in your personal choice. The Government did not adopt the 2008 recommendations - probably noting how unpopular the MPF scheme is.
HK Government, 16-Feb-2011
7 months after the review was submitted to Government, it is revealed that the recommendations are HK$5.5k (up from $5k) for the minimum relevant income below which, employees would not contribute and $30k cap (up from $20k) above which, the Government would stop interfering in your personal choice. The Government did not adopt the 2008 recommendations - probably noting how unpopular the MPF scheme is.
Minimum wage will reduce some incomes
The road to intervention is paved with unintended consequences. We look at the conflict between the Minimum Wage and the MPF, resulting in some workers receiving less take-home pay and others having very little work incentive beyond 178.5 paid hours per month. We propose adjustments to the MPF threshold and contribution basis for low-income workers to address this. (2-Jan-2011)
The road to intervention is paved with unintended consequences. We look at the conflict between the Minimum Wage and the MPF, resulting in some workers receiving less take-home pay and others having very little work incentive beyond 178.5 paid hours per month. We propose adjustments to the MPF threshold and contribution basis for low-income workers to address this. (2-Jan-2011)
Government backtracks on MPF employee choice
HK Government, 30-Sep-2010
Comment: intermediaries are already regulated by the HKMA, SFC and insurance self-regulatory bodies, and employees who change jobs can already choose their own providers, so the sudden interest in better regulation is no excuse for not extending that choice to employees, allowing them to choose their own fund providers without changing jobs.
HK Government, 30-Sep-2010
Comment: intermediaries are already regulated by the HKMA, SFC and insurance self-regulatory bodies, and employees who change jobs can already choose their own providers, so the sudden interest in better regulation is no excuse for not extending that choice to employees, allowing them to choose their own fund providers without changing jobs.
The Post Office Investment Fund
Following yesterday's Audit Commission report on Hongkong Post, we look at the potential closure of rural post offices, removal of its mail monopoly and universal service obligation, and its cash-rich balance sheet and prime property. We also discuss the Government's tendency to stash pots of money away in different bodies rather than pass recurrent spending through the budget and the Legislative Council and manage its liquid funds centrally. (22-Apr-2010)
Following yesterday's Audit Commission report on Hongkong Post, we look at the potential closure of rural post offices, removal of its mail monopoly and universal service obligation, and its cash-rich balance sheet and prime property. We also discuss the Government's tendency to stash pots of money away in different bodies rather than pass recurrent spending through the budget and the Legislative Council and manage its liquid funds centrally. (22-Apr-2010)
Henry Fan takes leave from Executive Council and MPFA during CITIC Pacific investigation
HK Government, 24-Oct-2008
Comment: What about his other public positions? He chairs the Standing Committee on Disciplined Services Salaries and Conditions of Service and the Advisory Committee on Admission of Quality Migrants and Professionals. He is a member of the Standing Committee on Judicial Salaries and Conditions of Service, the Advisory Committee on Post-office Employment for Former Chief Executives and Politically Appointed Officials, and the HKMA's Exchange Fund Advisory Committee.
HK Government, 24-Oct-2008
Comment: What about his other public positions? He chairs the Standing Committee on Disciplined Services Salaries and Conditions of Service and the Advisory Committee on Admission of Quality Migrants and Professionals. He is a member of the Standing Committee on Judicial Salaries and Conditions of Service, the Advisory Committee on Post-office Employment for Former Chief Executives and Politically Appointed Officials, and the HKMA's Exchange Fund Advisory Committee.
Lessons from Lehman Minibonds
Webb-site.com looks beyond the Lehman minibonds fiasco and proposes three steps to reform the regulatory system for the sale of financial products. Without such reforms, there is a risk of either repeated crises or an outright ban on the sale of such products. Tell us what you think in our opinion poll. (20-Oct-2008)
Webb-site.com looks beyond the Lehman minibonds fiasco and proposes three steps to reform the regulatory system for the sale of financial products. Without such reforms, there is a risk of either repeated crises or an outright ban on the sale of such products. Tell us what you think in our opinion poll. (20-Oct-2008)
MPF Part 3: The Bloated Regulator
MPF's regulator, the MPFA, was grossly overcapitalised at inception and has been waiving the annual registration fee it should be charging to trustees, thereby subsidising the industry at almost HK$200m per year. This fee should be collected to cover its costs, and the MPFA should return $5,000m of surplus capital to the Government. (11-Feb-2007)
MPF's regulator, the MPFA, was grossly overcapitalised at inception and has been waiving the annual registration fee it should be charging to trustees, thereby subsidising the industry at almost HK$200m per year. This fee should be collected to cover its costs, and the MPFA should return $5,000m of surplus capital to the Government. (11-Feb-2007)
MPF Part 2: Stop the Increase
We call on the Government to stop the proposed increase in MPF contributions, which we estimate will cost HK$4.24bn per year. We renew our call to abolish the MPF and return economic freedom to the people. As more capital gets trapped in MPF funds, demands to withdraw it for urgent needs will become more frequent. And is Donald Tsang planning a Mandatory Medical Savings scheme? (11-Feb-2007)
We call on the Government to stop the proposed increase in MPF contributions, which we estimate will cost HK$4.24bn per year. We renew our call to abolish the MPF and return economic freedom to the people. As more capital gets trapped in MPF funds, demands to withdraw it for urgent needs will become more frequent. And is Donald Tsang planning a Mandatory Medical Savings scheme? (11-Feb-2007)
MPF Part 1: What it Costs You
In Part 1 of our new MPF series, we look at the frightening first disclosures of expense ratios for MPF funds, and how this will crush the performance of the money trapped in the MPF schemes relative to the markets they invest in. (11-Feb-2007)
In Part 1 of our new MPF series, we look at the frightening first disclosures of expense ratios for MPF funds, and how this will crush the performance of the money trapped in the MPF schemes relative to the markets they invest in. (11-Feb-2007)
Scrap the MPF
We find that a typical Mandatory Provident Fund is running an expense ratio of about 2.0% per year, or about 15 times that of an exchange-traded index fund. Over 40 years, as much as 55% of today's capital and returns will be eaten up by MPF expenses. And all this for a compulsory savings scheme which is fatally flawed by the lump-sum payout. We call on the Government to return personal savings to the free market. (23-Jun-2005)
We find that a typical Mandatory Provident Fund is running an expense ratio of about 2.0% per year, or about 15 times that of an exchange-traded index fund. Over 40 years, as much as 55% of today's capital and returns will be eaten up by MPF expenses. And all this for a compulsory savings scheme which is fatally flawed by the lump-sum payout. We call on the Government to return personal savings to the free market. (23-Jun-2005)
MPFA Chairman welcomes Managing Director's appointment
HK Government, 29-Feb-2000
Earlier today the Government announced in a reshuffle that Rafael Hui Si Yan would be stepping down as Secretary for Financial Services and leaving the civil service "for personal reasons". In reality, he's moving to the latest quango.
HK Government, 29-Feb-2000
Earlier today the Government announced in a reshuffle that Rafael Hui Si Yan would be stepping down as Secretary for Financial Services and leaving the civil service "for personal reasons". In reality, he's moving to the latest quango.
Circular TraHK
In an extraordinary move, the Government has said that its Mandatory Provident Fund Schemes Authority will invest part of its operating funds and compensation fund in the TraHK. This Government's blatant attempt to underwrite its own issue represents the next step on a slippery slope of Government fiddling with the markets. Who will invest next - the Airport Authority, Water Authority, or Hongkong Post? (28-Oct-1999)
In an extraordinary move, the Government has said that its Mandatory Provident Fund Schemes Authority will invest part of its operating funds and compensation fund in the TraHK. This Government's blatant attempt to underwrite its own issue represents the next step on a slippery slope of Government fiddling with the markets. Who will invest next - the Airport Authority, Water Authority, or Hongkong Post? (28-Oct-1999)
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