New “Value for Money” disclosures set to benefit MPF members

15th September 2022

Requirements raise accountability and is industry best practice according to leading MPF commentator

Key points are as follows:

  • MPF regulator, the Mandatory Provident Fund Schemes Authority (MPFA), announces proposal to enhance transparency of governance reporting.
  • Notably, Governance Reports are to be signed off by Trustee boards and made public on MPFA and MPF scheme websites
  • Governance Reports will include comprehensive assessments of “value for money”, Sustainable investing strategy and implementation progress, and the effectiveness of the Trustee’s board.
  • MPF Ratings, an independent provider of MPF research views and opinions, cites the new requirements as “demonstrating accountability, industry leadership and best practice”
  • Examples of independent MPF Scheme “Value for Money” assessments are available on MPF Ratings’ website.

MPF Ratings, the MPF industry’s independent provider of MPF research, views and opinions, today issued a press release welcoming the latest MPF industry initiative to enhance MPF’s transparency and improve governance, by describing it as accountable “industry best practice” aimed at delivering better value for money for MPF members.

According to MPF Ratings’ Chairman, Francis Chung (叢川普), the MPFA’s recent “Initiative to Enhance Transparency of Governance Reporting of MPF Schemes” circular sent to all Approved Trustees of MPF Schemes demonstrates not only an MPFA and system stakeholders’ commitment to improve the MPF system, but by introducing industry best practices it also demonstrates accountability and proactive leadership.


What will be included in the Governance Report?

“Trustees will be expected to provide details on its scheme’s Sustainable investing strategy and progress, evaluate its value for money proposition, and assess its Board performance and structure.”

Why the Governance Report initiative is so significant?

“Transparency is a driver of accountability. MPF trustees will be required to sign off, submit and agree to make the Governance Reports publicly available on both their and the MPFA’s website annually. This escalated level of transparency and accountability is welcomed and the MPFA, and industry participants should be applauded.”

What does MPF Ratings believe the Governance Report will deliver?

“Signing off and issuing Governance Reports publicly ensures MPF scheme trustees will have no place to hide from underperformance. We expect transparency and accountability to elevate competition, producing better member MPF experiences while building trust and confidence in the MPF system. The Governance Report initiative demonstrates accountability, industry leadership and is best practice.”

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