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The following is issued on behalf of Mandatory Provident Fund Schemes Authority:
The Mandatory Provident Fund Schemes Authority (MPFA) today announced that, in order to enhance protection of the interests of over two million employees, the MPFA has proposed to reinforce the existing regulatory regime of MPF intermediaries through legislation and that the Government has agreed to the proposal.
An MPFA spokesperson said the Government and the MPFA would, in consultation with other regulators, discuss the details of the legislative framework.
"In the process, we would listen to the views of the industry and we aim to consult the public at the end of this year or early next year," said the spokesperson.
The spokesperson said the MPFA hoped that legislation would be introduced in 2011. As the legislative process took time, the launch of the Employee Choice Arrangement (ECA) would have to be deferred. The MPFA believed, for the sake of protecting the interests of scheme members, it would be a better and more prudent approach to do so.
ECA will give scheme members a right to transfer to an MPF scheme of their choice accrued benefits derived from their own mandatory contributions during current employment.
The spokesperson added, "Before the launch of ECA, the MPFA will continue to pursue other measures to help strengthen employees' ability to choose their own trustee and scheme, and to increase market competition."
Ends/Thursday, September 30, 2010
Issued at HKT 16:01
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