Hon WONG Kwok-hing: Some employee suggested an alternative that the MPF schemes should be entrusted by the Hong Kong Monetary Authority (HKMA) to ensure the contributions will not be nibbled away by administration fees. Is it practical?
The Secretary for Financial Services and the Treasury, Professor K C Chan: I think it is not practical. Since the high administration fee of MPF schemes is due to the complicated system, so our main focus is to control the costs through core funds.
Hon Chan Kin-por: Some member asked for an option that the HKMA should entrust the MPF schemes to ensure the contributions will not be nibbled away by administration fees. I want to point out that, even if the HKMA did the investment part, MPF members still have to pay the administration fees for the administration work apart from investment under the current MPF system. Only by streamlining the workflow and automation, will the administration costs and fees be lowered.