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Exclusive | China Life, BEA, YF Life among 5 picked for Mandatory Provident Fund’s electronic platform launch next summer
- All 13 MPF trustees will join the electronic platform in phases to ensure a smooth transition, pension regulator’s new boss says
- The eMPF platform will help save as much as HK$40 billion (US$5.14 billion) in administrative costs over 10 years and pass the benefits to its members
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The first batch of pension providers will join Hong Kong’s Mandatory Provident Fund’s new electronic platform next year, taking the city’s compulsory pension fund a step closer to fully digitising its services.
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China Life, Bank of East Asia (BEA), YF Life, Bank of Communications and RBC Investor Services Trust will join between June and August next year under a preliminary schedule, according to Cheng Yan-chee, managing director of the pension regulator Mandatory Provident Fund Schemes Authority (MPFA). The schedule is yet to be finalised.
The five companies have a combined market share of about 4.7 per cent based on their HK$49.4 billion (US$6.3 billion) of assets under management and custody as of June, according to MPFA data. Total assets under the MPF stood at HK$1.06 trillion on June 30.
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“We will schedule the 13 trustees and their 27 schemes to shift to the eMPF platform in batches in the order of the size of their assets under management,” Cheng told the Post in an exclusive interview, his first since taking office in June. “The larger the provider, the later they will join as we want to manage risks and ensure a smooth transition.”
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