MPF Bill 2019 Gazetted

The Mandatory Provident Fund Schemes (Amendment) Bill 2019 was officially published today.

The bill seeks to give the Mandatory Provident Fund Schemes Authority power to set up a wholly owned subsidiary as the legal entity to build, own and operate the eMPF Centralised Platform.

The Financial Services & the Treasury Bureau said the platform will facilitate the standardisation, streamlining and automation of MPF scheme processes with the goal of reducing MPF management fees.

The bill will also enable the authority to charge MPF approved trustees the statutory annual registration fee at a level of 0.03% of the net asset value of an MPF scheme starting from January 1, next year.

The bureau further explained that the Government suggested adopting an incremental approach. It recommended starting with a lower level of 0.03% of the net asset value for the first six years to allow trustees time to adjust to the new expenses.

The fee level will be revised from the seventh year after review.

The Amendment Bill will be introduced into the Legislative Council for the first reading on July 3.