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The Mandatory Provident Fund Schemes Authority (MPFA) today (Monday, 2 February 2004) released a Consultation Paper on the Draft Code on Disclosure for MPF Investment Funds, which aims to enhance the transparency of fees and charges through improvements to the disclosure of information about MPF funds.

Comments on the draft Code are invited from the industry and the public during the six-week consultation period, which started today (2 February 2004) and ends on 15 March 2004.

A spokesperson for the MPFA explained that the proposals in the draft Code seek to provide scheme members with clearer and easier-to-understand information to enable them to make more effective MPF investment decisions.

"The proposals include the use of mechanism such as simplified language, improving the consistency of presentation and language, and a variety of tools that will assist members in understanding the MPF information, as well as a set of good disclosure principles to guide the trustees.

"The proposed tools include a standardised fee table for all registered MPF schemes; an on-going cost illustration that shows the cost over defined time horizons; and fund expense ratios which show the total level of expenses incurred by a fund."

The spokesperson pointed out that the project on disclosure for MPF funds was initiated by the Authority, and in the past year, it has worked very closely with the industry in developing the proposals.

"The industry is supportive of the project and has contributed significantly to the development of the draft Code.  Comments received during the consultation period will be carefully considered before the Code is finalised for publication in the middle of this year."

Copies of the Consultation Paper are available at the MPFA office at 5/F, One International Financial Centre, 1 Harbour View Street, Central, and could be downloaded from the MPFA website. 

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Monday, 2 February 2004