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Mandatory Provident Fund intermediaries will be required to constantly update their MPF-related knowledge from next year to be able to continue to provide advice on MPF schemes.

The Mandatory Provident Fund Schemes Authority (MPFA) today (22 October 2001) issues the Guide to Continuing Professional Development for MPF Intermediaries which sets out the new requirements.

Starting from 1 January 2002, an individual MPF intermediary is required to undertake a minimum of 10 hours of CPD activities in each calendar year, with at least 20 per cent of the minimum requirement to be devoted to core subject areas. Core subject areas include MPF or related legislation, relevant codes and guidelines, as well as latest developments in the MPF System. Non-core subjects include areas such as financial products, insurance, economic/financial analysis, language and communication skills.

“With the MPF system being a new system, there are bound to be changes in the system in light of operational experience,” Ms. Hendena Yu, Chief Operating Officer (Compliance) of the MPFA said. “And as the MPF system interweaves with other systems in the financial market, changes in the banking, insurance, securities and retirement schemes industries could affect the system one way or the other,” she said. Continuing Professional Development provides a systematic approach to improve and broaden the knowledge and skill of individual intermediaries so that they can continue to carry out their duties competently and professionally,” Ms. Yu said.

Credit hours for non-core subjects earned under the Insurance Authority, the Securities and Futures Commission and the Monetary Authority CPD programmes will be recognized by the MPFA. This would avoid subjecting the individual intermediaries to multiple CPD requirements, especially if they have registration with the three regulators.

Both the individual and the corporate intermediaries are required to comply with the CPD guidelines. The corporate intermediary is responsible for ensuring its sponsored individual intermediaries fulfill the CPD requirement. Non-compliance to the CPD requirement may result in an intermediary having to surrender his MPF intermediary card and have his name removed from the MPF Intermediaries Public Register.

The MPFA will accept CPD credits gained through activities organized by institutions it recognizes. MPF-focused activities under the IA’s CPD Programme or SFC’s Continuous Professional Training Programme that are recognized by the MPFA will also be accepted. For non-core subjects, attendance to activities organized by recognized institutions is encouraged but not mandatory.

The Guide is now posted on the Authority’s website.

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22 October 2001