The MPFA is vigorously promoting the development of the e-MPF platform and using financial technology to save administrative costs. The current "rules of the game" for MPF sponsors are bound to change.
Pan Jihong, chairman of the Association of Pension Fund Schemes, believes that the emergence of new platforms is a "risk and opportunity", and sponsors need to continue to improve fund performance and improve the level of brokers to retain "wage earners" and hand over pensions to sponsors for investment .
Pan Jihong pointed out in an interview with "Hong Kong 01" that the e-MPF platform is a "dangerous opportunity" for sponsors, and believes that the industry will undergo two major changes.
(Photo by Ou Jiale)
One of the major tasks of the MPFA in recent years is to promote the development of the e-MPF platform.
The platform provides a one-stop electronic platform service, allowing scheme members to manage their MPF accounts in different schemes through the Internet and mobile apps. The purpose is to reshape the administrative operation of MPF schemes and standardize the existing scheme administrative procedures , streamline and automate.
The bureau described the platform as the most significant reform since the implementation of the MPF system, and it is estimated that it will be fully operational in 2025.
In the first two years, the overall administrative costs of the MPF can be reduced by about 30%. After 10 years, it is estimated that the cumulative cost savings will be about HK$30-40 billion.
The Retirement Provident Fund Scheme Association was established in 2018. It was co-sponsored by 6 local MPF sponsors including AIA, Fidelity (Hong Kong), HSBC, Manulife, Principal Insurance and Sun Life Financial, which together manage about 80% of the MPF scheme assets .
Pan Jihong, the chairman of the association, pointed out in an interview with "Hong Kong 01" that the e-MPF platform is a "dangerous opportunity" for sponsors, and believes that there will be two major changes in the industry.
She pointed out that the EMPF platform unifies the administrative work of each sponsor, saves a lot of cost and paper, and everyone will compete on the same "starting line", and the investment return of its funds becomes the key to "attracting customers".
She explained that after the launch of the platform, "wage earners" can easily compare the fund performance of various sponsors, and "transfer" is also very convenient. Sponsors need to improve their capabilities in the long run and carry out more education work, etc., so that wage earners are willing to transfer The pension is handed over to the sponsor for investment.
One of the major tasks of the MPFA in recent years is to promote the development of the e-MPF platform.
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Fund managers 'need to do more'
On the other hand, at present, all the sponsors have launched the same type of funds, such as the Greater China Fund, Hong Kong Stock Fund, etc. She predicts that if the performance of the funds continues to slump, they may be integrated in the future, and a group of investment fund managers may want to Do more, even change investment strategies, etc., to maintain sustained, long-term brilliant returns.
As for the roles of the brokers, they will also change.
Pan Jihong pointed out that one of the current tasks of a brokerage is to "fill out forms" for clients in order to help them integrate their MPF accounts, but the EMPF platform eliminates this task. The level of brokerage needs to be further improved to provide more professional advice. To enable customers to achieve "financial freedom".
However, she believes that the number of brokers will only increase, mainly because they see the opportunities in the Greater Bay Area in the future. "Large and small insurance companies, everyone wants to increase their manpower, but they can't find them."
MPF｜Easy MPF platform will change the "rules of the game" Pan Jihong expects two major changes in the industry MPF｜The per capita loss of more than 60,000 during the year The industry calls for long-term returns and opposes making the first installment
