MPFA expresses concerns over services provided by MPF intermediaries

The Mandatory Provident Fund Authority (MPFA) has issued a press statement in which it expresses concerns about the services provided by MPF intermediaries and announces several upcoming measures to ensure the protection of scheme members‘ interests. These measures include the following:
(1) Strengthening enforcement: The MPFA is deeply concerned about misconduct involving activities such as unauthorized transfers of scheme members‘ MPF benefits, forging scheme members‘ signatures, or impersonating scheme members for the purpose of obtaining their account information fraudulently. To address these serious misconducts, the MPFA plans to enhance enforcement by imposing stricter disciplinary sanctions on affected intermediaries, including public reprimands and longer suspension of registration for wrongdoers. This enhancement was also announced in a corresponding circular published in September 2023.
(2) Disclosure of commission benefits: Earlier this year, the MPFA issued revised Guidelines on Conduct Requirements for Registered Intermediaries (Conduct Guidelines) which will come into force on March 1, 2024. The revisions seek to enhance the transparency of benefits received by intermediaries for providing services by requiring intermediaries – upon client request – to provide specific information about monetary benefits received by the principal intermediaries related to regulated activities AND obtain clients‘ consent for receiving such benefits.
(3) Raising professional standards: In the past months, the MPFA has taken steps to raise the professional standards within the industry. In fact, it has revised its Guidelines on Continuing Training for Subsidiary Intermediaries which will come into force on January 1, 2024. Thereafter, the minimum required continuing professional development (CPD) hours for subsidiary intermediaries will increase from 10 to 15 hours annually and the minimum hours for core CPD activities will rise from two to four hours. Additionally, the definition of core CPD activities now encompasses topics related to „ethical conduct“ and „regulatory compliance.“
(4) Preventing phone scams: In an effort to prevent phone scams, the MPFA has issued a new Guidance Note on Conducting Sales by Unsolicited Calls to all MPF registered intermediaries, outlining its regulatory obligations as they pertain to telemarketing. The MPFA has also urged the public to check the Register of MPF Intermediaries on the MPFA website to verify intermediaries‘ registration status to detect improper MPF marketing activities by unregistered individuals and scams using the MPF name.
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To conclude, the MPFA emphasizes that ongoing enhancements in the ethical standards of intermediaries play a pivotal role in bolstering the industry’s reputation. This is crucial for the seamless functioning of the MPF System and for ensuring the effective safeguarding of retirement benefits for scheme members.