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The Financial Services and the Treasury Bureau submitted a paper to the Legislative Council's Panel on Financial Affairs today (March 28) on the legislative proposals to enhance the regulation of the sales and marketing activities of Mandatory Provident Fund (MPF) intermediaries.
A spokesman for the Financial Services and the Treasury Bureau said: "The legislative proposals will establish a statutory regulatory regime for MPF intermediaries before the implementation of the Employee Choice Arrangement (ECA) to better protect the interests of more than 2.5 million MPF scheme members."
"The proposed regulatory regime for MPF intermediaries is modelled on the existing administrative arrangements, with modifications and enhancement as appropriate. The Mandatory Provident Fund Schemes Authority will continue to be responsible for setting the standards for the industry and remain as the registration authority, while the Hong Kong Monetary Authority, Insurance Authority and Securities and Futures Commission will continue to be the frontline regulators."
"This approach will minimise disruption to the existing regulatory arrangements and facilitate early implementation of the ECA," the spokesman stressed.
"The public, including industry bodies and stakeholders, are invited to give their comments on the legislative proposals. Subject to the views of the Legislative Council and public, we aim to introduce a Bill into the Legislative Council this year, with a view to completing the legislative amendments in mid-2012 such that the ECA can be implemented on the basis of a strengthened regime to regulate the sale and marketing of MPF products for better protection of scheme members' interests," the spokesman said.
The legislation will include prohibitions against engaging in regulated MPF sales and marketing activities other than by registered MPF intermediaries; a registration regime for MPF intermediaries; and powers for relevant regulators to enforce conduct requirements on MPF intermediaries. It is proposed that there should be a two-year transitional period for pre-existing MPF intermediaries.
The paper on the legislative proposals has been uploaded onto the website of the Financial Services and the Treasury Bureau (www.fstb.gov.hk/fsb/topical/doc/mpfi_faer_e.pdf). The public are welcome to send their comments on or before April 30, 2011 by mail to the bureau on 18/F, Tower I, Admiralty Centre, 18, Harcourt Road, Hong Kong; by email to enq@fstb.gov.hk; or by fax to 2529 1663.
Ends/Monday, March 28, 2011
Issued at HKT 15:10
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