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The Mandatory Provident Fund Schemes Authority (MPFA) today announced the appointment of Ernst & Young Advisory Services Limited as the consultant to conduct a study on MPF trustees' administration costs in order to identify ways to further simplify administrative processes, with the aim of reducing costs and thereby allowing room for further fee reductions.

MPFA Chairman Anna Wu said, "MPF fees have been a matter of public concern and the MPFA has been looking for ways to drive them down. We attach great importance to the study and have set up a steering committee to oversee it."

The MPF is different from the usual retail funds. MPF trustees have to undertake a number of statutory administrative functions, including handling enrolment in MPF schemes, collecting contributions and allocating them to members' accounts for investment, assisting in the recovery of outstanding contributions, ensuring compliance with regulatory requirements and processing benefits payments.

Chairman of the MPFA Management Board's Steering Committee on the Consultancy Study John Poon said, "We trust that Ernst & Young, with its vast expertise and overseas experience, will provide an in-depth analysis of these costs and make useful suggestions on how to achieve simplicity, greater economy of scale and cost reduction. Ernst & Young will also compare the data against the administration costs of overseas pension schemes."

The consultant is expected to submit a report to the MPFA in mid-2012.


Chairman of the MPFA Anna Wu (second from right) and Chairman of the MPFA Management Board's Steering Committee on the Consultancy Study John Poon (first from left) meet with Keith Pogson (second from left), Managing Partner, Financial Services Asia Pacific, Ernst & Young and Kieren Cummings, Partner, Financial Services, Ernst & Young.

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9 December 2011