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The Management Board of the Mandatory Provident Fund Schemes Authority (MPFA) endorsed at its meeting today (Thursday) a Memorandum of Understanding (MOU) Concerning the Regulation of MPF Intermediaries to be signed among the Monetary Authority (MA), the Insurance Authority (IA), the Securities and Futures Commission (SFC) and the MPFA.

Chairman of the MPFA, Hon. Charles Lee Yeh-kwong, said, "The MOU to be signed among the four regulators sets out in broad terms their respective responsibilities in the enforcement of the Code of Conduct for MPF Intermediaries, and other related matters concerning the regulation of MPF intermediaries."

"The MPFA will act as the lead regulator and co-ordinator, and rely on the SFC, the IA and the MA for the licensing and supervision of MPF intermediaries. An MPF Intermediaries Regulation Co-ordinating Committee has been set up to co-ordinate the regulation of MPF intermediaries among the regulators, " he added.

All MPF intermediaries must be qualified under one or more of the existing regulatory regimes, namely, the SFC regime, the IA regime and the MA regime.

MPF intermediaries who intend to give advice on both securities and insurance policies will need to comply with the licensing requirements of both the SFC and IA regimes. They are also required to pass an MPF intermediaries examination recognized by the MPFA.

The MPFA has also begun the registration of MPF intermediaries. MPF intermediaries cards will be issued to registered MPF intermediaries with clear identification of their qualification. A register of registered MPF intermediaries will be made available to the public for inspection.

As at the end of September, more than 8,000 persons have passed the MPF intermediaries examination. Mr. Lee urged the service providers to submit their applications for MPF intermediaries cards to the MPFA as early as possible, so that the MPFA could issue the cards to the intermediaries before February 2000, when the approved service providers would be permitted to start marketing approved MPF products.

Mr. Lee also announced that the MPFA had worked out a tendering timetable for the MPF Industry Schemes. "We will start inviting all the approved corporate trustees to submit applications for registration of Industry Schemes in November this year, " said Mr. Lee.

"Our plan is to complete the tendering exercise by March 2000 to allow sufficient time for the selected scheme operators to prepare for marketing and enrolment," he added.

The following is a timetable for the registration of MPF Industry Schemes:

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7 October 1999