JIG all for a more flexible MPF system
27 November 2012
News, Asia, Hong Kong
By Asia Asset Management
The Joint Industry Group (JIG), a coalition of companies comprising the Hong Kong Federation of Insurers, Hong Kong Investment Fund Association and Hong Kong Trustees Association, issued the following comments in response to the Mandatory Provident Fund Schemes Authority (MPFA) study which was released on Monday (November 26) – Consultancy Study on MPF Trustees’ Administration Costs.
A JIG spokesperson said: “The JIG believes the MPFA’s study on Hong Kong’s retirement savings system provides an important platform for all the stakeholders invested in the success of the MPF to engage in a productive dialogue to move the system to its next stage of maturity.
“The MPFA report is supportive of the study released in May 2012, which was commissioned by the JIG and conducted by Ernst & Young: The evolving MPF system: an objective assessment - Study on fees, fund options and fund performance in the Hong Kong Mandatory Provident Fund sector (http://www.hkfi.org.hk/en_media_20120524.html).
“The study found that the MPF system in Hong Kong has progressed very well through the first decade of development supported by a robust infrastructure. Even at this relatively early stage, the MPF system offers participating members considerable choice in terms of the number and type of funds that they can invest in.
“For the MPF to continue to strengthen and provide a sustainable source of retirement income for participants, the JIG strongly advocates for a flexible system as part of a framework where members can make informed choices from a wide range of investment funds. At the same time, the JIG believes it is important to continue to improve MPF administration and reduce overall costs with an aim to passing on savings to members."
“The JIG will be working in a more formal manner with the MPFA going forward to contribute our members’ experience and wide breadth of knowledge on many of the important recommendations being considered to strengthen the MPF system.”
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