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MPF changes to create more marketing and admin work

The proposed changes to Hong KongÆs MPF scheme will create more marketing and admin work, but may bring more players into the market, says BEA UnionÆs Scott Lothian.

Most fund managers agree that allowing employee members of Hong Kong's Mandatory Provident Fund (MPF) schemes to switch providers is a good thing for competition in the sector. But it will be hard work for the trustees and record keepers, says Scott Lothian, head of multi-asset at BEA Union Investments in Hong Kong. "The admin is going to be a nightmare for some people," he adds. The changes will also mean a greater focus on retail-type MPF marketing.

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