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- Smooth transition to the new statutory regulatory regime for MPF intermediaries
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Smooth transition to the new statutory regulatory regime for MPF intermediaries
The two-year transitional period under the statutory regulatory regime for Mandatory Provident Fund (MPF) intermediaries ended on 31 October 2014. About 26,600 MPF intermediaries (including principal and subsidiary intermediaries1) migrated from the old regime and re-registered in the new regime during this period.
Transition smoothly completed
The statutory regulatory regime for MPF intermediaries came into effect on 1 November 2012. At that time, there were about 32,300 MPF intermediaries registered under the old regime. These intermediaries needed to apply for re-registration under the new regime during the two-year transitional period to be permitted to continue conducting regulated MPF sales and marketing activities after 1 November 2014.
During the transition, about 5,500 subsidiary intermediaries were de-registered as they were no longer attached to any principal intermediaries. About 180 intermediaries were de-registered for failing to apply for re-registration under the new regime before the deadline.
New statutory regulatory regime working well
At present, there are about 32,200 registered MPF intermediaries. They come from the insurance (about 81%), banking (about 17%) and securities (about 2%) industries and are supervised by frontline regulators in their respective industries, namely the Insurance Authority, the Hong Kong Monetary Authority, and the Securities and Futures Commission. Under the statutory regulatory regime, the Mandatory Provident Fund Schemes Authority (MPFA) is the sole authority for registering MPF intermediaries and issuing guidelines on compliance with statutory conduct requirements. It also handles complaints against MPF intermediaries and imposes disciplinary sanctions in cases of misconduct.
To help intermediaries migrate smoothly to the new regime, the MPFA issued guidelines in relation to the statutory regulatory regime and over 20 circulars to principal intermediaries before and after the implementation of the new regime, reminding them of important points to note. In addition, over 20 “train-the-trainer” workshops and seminars were organized, and standard training materials were prepared for the industry and relevant training institutions. All these efforts sought to help intermediaries understand the new requirements under the statutory regulatory regime.
MPFA Chief Operating Officer Alice Law said, “The statutory regulatory regime for MPF intermediaries has been operating smoothly since it came into effect two years ago. We thank the Insurance Authority, the Hong Kong Monetary Authority, and the Securities and Futures Commission, as the frontline regulators of MPF intermediaries, for their close collaboration with the MPFA, and for their valuable advice and assistance, which helped ensure the smooth implementation of this multi-regulator model. Besides, the full support from the industry has facilitated the operation of the new regime.”
She added that experience in the past two years had shown that the majority of the registered intermediaries were compliant with the law. From November 2012 to October 2014, the MPFA received 64 complaints about MPF intermediaries. Most of them were related to the service level of intermediaries or their miscommunication with scheme members.
- Ends -
3 November 2014
Transition smoothly completed
The statutory regulatory regime for MPF intermediaries came into effect on 1 November 2012. At that time, there were about 32,300 MPF intermediaries registered under the old regime. These intermediaries needed to apply for re-registration under the new regime during the two-year transitional period to be permitted to continue conducting regulated MPF sales and marketing activities after 1 November 2014.
During the transition, about 5,500 subsidiary intermediaries were de-registered as they were no longer attached to any principal intermediaries. About 180 intermediaries were de-registered for failing to apply for re-registration under the new regime before the deadline.
New statutory regulatory regime working well
At present, there are about 32,200 registered MPF intermediaries. They come from the insurance (about 81%), banking (about 17%) and securities (about 2%) industries and are supervised by frontline regulators in their respective industries, namely the Insurance Authority, the Hong Kong Monetary Authority, and the Securities and Futures Commission. Under the statutory regulatory regime, the Mandatory Provident Fund Schemes Authority (MPFA) is the sole authority for registering MPF intermediaries and issuing guidelines on compliance with statutory conduct requirements. It also handles complaints against MPF intermediaries and imposes disciplinary sanctions in cases of misconduct.
To help intermediaries migrate smoothly to the new regime, the MPFA issued guidelines in relation to the statutory regulatory regime and over 20 circulars to principal intermediaries before and after the implementation of the new regime, reminding them of important points to note. In addition, over 20 “train-the-trainer” workshops and seminars were organized, and standard training materials were prepared for the industry and relevant training institutions. All these efforts sought to help intermediaries understand the new requirements under the statutory regulatory regime.
MPFA Chief Operating Officer Alice Law said, “The statutory regulatory regime for MPF intermediaries has been operating smoothly since it came into effect two years ago. We thank the Insurance Authority, the Hong Kong Monetary Authority, and the Securities and Futures Commission, as the frontline regulators of MPF intermediaries, for their close collaboration with the MPFA, and for their valuable advice and assistance, which helped ensure the smooth implementation of this multi-regulator model. Besides, the full support from the industry has facilitated the operation of the new regime.”
She added that experience in the past two years had shown that the majority of the registered intermediaries were compliant with the law. From November 2012 to October 2014, the MPFA received 64 complaints about MPF intermediaries. Most of them were related to the service level of intermediaries or their miscommunication with scheme members.
- Ends -
3 November 2014
1 Principal intermediaries refer to companies conducting “regulated activities”, while subsidiary intermediaries refer to employees, agents or representatives working for principal intermediaries.