bulletEDITOR'S PICKS

 

Indemnity commission to be banned in Hong Kong

From Asia Jul 31 2014 @ 16:47

The payment of indemnity commission, or “clawback”, by product providers selling Investment...
view article

FATCA seen as an opportunity not a burden

From Tax & Regulation Jul 30 2014 @ 11:38

Contrary to common perception, many wealth management firms in the UK are embracing the...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

Indemnity commission to be banned in Hong Kong

Indemnity commission to be banned in Hong KongThe payment of indemnity commission, or “clawback”, by product providers selling...
view article

Schroders interim dividend jumps 50% on strong...

From United Kingdom Jul 31 2014 @ 16:15

Saltus teams up with Alpha Diversify in push...

From United Kingdom Jul 31 2014 @ 15:53

MORE FROM Asia

LATEST NEWS

Credit Suisse probed by 'various authorities' over dark pool

Credit Suisse probed by Swiss bank Credit Suisse has revealed that it is to join Barclays, UBS and...
view article

IHT receipts leap 10% as experts warn of...

From Tax & Regulation Jul 31 2014 @ 12:31

Fears 'aggressive' HMRC may target offshore...

From Tax & Regulation Jul 31 2014 @ 12:13

MORE FROM Europe

LATEST NEWS

Platform One adds TCF Investment products to fund resources

Platform One adds TCF Investment products to fund resourcesUK and international wrap service Platform One has added TCF Investment Model...
view article

Commission-free insurance available in...

From Asia Jul 30 2014 @ 16:51

HMRC claims victory over NT Advisors with...

From United Kingdom Jul 30 2014 @ 16:44

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...