bulletEDITOR'S PICKS

 

Sesame fined more than £1.5m for 'undermining' RDR

From United Kingdom Oct 30 2014 @ 14:58

The UK’s most complained about advisory firm, Sesame, has been fined over £1...
view article

Barclays accused of ‘betraying duties’ to obtain Saudi licence

From United Kingdom Oct 30 2014 @ 10:41

A Saudi businessmen is suing Barclays for $10bn in damages, claiming the company struck a secret...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

Brazil’s pension sector courts Nordic bank

Brazil’s pension sector courts Nordic bankNordea Asset Management is reporting ‘huge interest’ from large Brazilian pension...
view article

Sesame fined more than £1.5m for '...

From United Kingdom Oct 30 2014 @ 14:58

Emirates NBD push record assets following SICAV...

From Middle East Oct 30 2014 @ 14:00

MORE FROM Products

LATEST NEWS

SJP closes on £50bn FuM, boosted by high Q3 sales

SJP closes on £50bn FuM, boosted by high Q3 salesNew business at St James’s Place increased by almost 20% over the third...
view article

Barclays accused of ‘betraying duties’ to...

From United Kingdom Oct 30 2014 @ 10:41

Nikko AM to launch first in series of ASEAN...

From Asia Oct 30 2014 @ 08:56

MORE FROM United Kingdom

LATEST NEWS

Skandia to track General Electric with second tranche autocall fund

Skandia to track General Electric with second tranche autocall fundSkandia International has launched the second edition of its autocall fund, which...
view article

Goldman Sachs launches alternative fixed income...

From Products Oct 29 2014 @ 17:51

Tapping local distribution a challenge under...

From Asia Oct 29 2014 @ 16:21

MORE FROM Products



Mark Battersby

HK financial services secretary ups the pressure to lower MPF fees

From Asia Oct 25 2012 BY: Mark Battersby , Editor , International Adviser

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


Hong Kong’s Secretary for Financial Services and the Treasury Ceajer Chan Ka-keung has called on the mandatory provident fund scheme providers to cut fees further.

The report, in the Hong Kong Standard, quoted Chan as saying "We will keep a close track of the market, including the change in the fund expense ratios [FERs] of MPF funds."

He added that he strongly believed there was room for further reduction in MPF management fees as the number of MPF funds increases.

Hong Kong’s Consumer Council is also reported to have said that local people pay the highest average management fee, of 1.74%, compared with people in other developed economies, though fees have fallen since 2008 when the figure was 2.1%.

One of the MPF providers, Bank of East Asia (Trustees) is already lining up with lower fees than the average MPF fund. It is to launch next week a new MPF scheme, comprising 10 funds, with fees ranging from 0.6% to 0.99% pa of the net asset value.

The introduction on 1 November of Employee Choice Accounts will enable Hong Kong workers, all of whom participate in the Special Administrative Region’s Mandatory Provident Fund scheme, to begin to be allowed to choose which MPF provider they use.

The idea is that by enabling investors to choose their MPF provider, pressure will be brought to bear on pressure on those MPF providers who over-charge, in addition to forcing them in some cases to improve their investment performance.
 

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin




TAGS: hong kong

COMMENTS


Have your say

(Be the first to) Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.






Share us on Twitter

SHARE US ON TWITTER
Join the community

Join us on Linked In

SHARE ON LINKED IN
Inform your colleagues

Switch to our mobile site

SWITCH TO MOBILE SITE
News on the go

Back tot he top of the page

BACK TO TOP OF PAGE
Just click here...