Continuous update︱The Legislative Council approves the establishment of the "E-MPF" platform. Members hope that MPF fees will continue to be reduced

The General Assembly of the Legislative Council will be resumed today (22nd), one week before the end of the current session.

The General Assembly took the lead in deliberating the "Mandatory Provident Fund Scheme (Amendment) Bill 2021" for the establishment of the "MPF Easy" electronic platform. After discussing it for about two hours, it raised its hands and passed the third reading.

The meeting is expected to review and amend the "Rules of Procedure" later, including the establishment of a fine mechanism for members who are absent during the meeting, as well as allowing members to choose whether to join the internal and financial accounting, but the number of members is not less than 50.

"Hong Kong 01" continues to update the key content of the conference.

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[11:00] The "Mandatory Provident Fund Scheme (Amendment) Bill 2021" entered the third reading process and passed by a show of hands.

[10:30] The Secretary for Financial Services and the Treasury, Xu Zhengyu, said that of the current total assets of more than 1 trillion yuan in MPF, 35%, or about 440 billion yuan, is a net return after deducting fees, an annualized return of 4.8% .

He called for the citizens to have more choices, and the authorities hope to introduce national debt and policy bank bonds.

Regarding Lu Songxiong’s proposal to establish a capital-guaranteed and inflation-linked fund, Xu Zhengyu said that he is open to the relevant direction. The first task at present is to build the "MPF Easy" platform and unify the MPF system that was originally scattered among more than a dozen trustees. .

[09:40] Chen Jianbo in the insurance industry believes that society lacks understanding of MPF, which has caused a lot of grievances.

He explained that as of the end of June, the annualized net return of the MPF was 5.1%, far exceeding the inflation during the same period. He criticized the MPFA for failing to promote and educate the public to choose suitable funds.

Xie Weiquan from the construction, testing and planning industry said that the government previously disclosed that the study encourages the public to buy annuities from MPFs. The intention is good, but the argument is vague, and it has been distorted to force the public to buy them. The explanation is still unsatisfactory.

He hopes that as "eMPF" is put into operation, the government and the MPFA will strengthen publicity.

[09:00] The "Mandatory Provident Fund Scheme (Amendment) Bill 2021" resumed its second reading. The Chairman of the Bills Committee Huang Dingguang made a report, introducing the amendment aimed at establishing the "EMPF" platform. The government, the MPFA, and the platform The operator has set a timetable for the transfer of the MPF accounts managed by the trustee in batches starting in 2023, and it will be completed in 2025 at the earliest.

Huang Dingguang pointed out that members are concerned about whether the digital utilization rate can reach 90% within five years, and whether the administrative fee can be reduced by 30% is achievable, and whether other costs will be reduced.

The government responded that the operator must meet the relevant requirements, otherwise it will have to bear contract compensation.

Huang Qi later spoke on behalf of an individual, saying that even if the average MPF fee is reduced to 1.44%, the total annual fee is still 17.5 billion yuan, which is a huge burden on employees and employers. He hopes that the establishment of the "MPF Easy" platform will help reduce administration We hope that the MPFA will further study to increase returns.

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