Ayesha Macpherson Lau, Chairman of Mandatory Provident Fund Schemes Authority (MPFA), announced in her blog post the completion of onboarding to the eMPF Platform (eMPF), marking the culmination of nearly two years of dedicated efforts.

eMPF is a centralized electronic platform that has successfully integrated MPF administration systems of all 12 MPF trustees, providing one stop administration services for MPF schemes covering approximately 5 million scheme members, 300,000 employers, 11 million MPF accounts, and more than HKD1.5 trillion MPF assets.

Lau also revealed that the average administration fee previously charged by trustees was 58 bps. Since the launch of eMPF two years ago, the level has been reduced to 37 bps under eMPF. As the fee reduction momentum continues, effective 1 April this year, the eMPF fee was further reduced from 37 bps to 29 bps, representing another cut of 22% and halving the administration fee previously charged by trustees.

With more and more users adopting the digital interface for using eMPF services, Lau believes that the eMPF fee can be further reduced to 20-25 bps in the future. She said she was confident that administration cost savings of HKD50 billion can be achieved in less than 10 years.

AASTOCKS Financial News