Hong Kong's Mandatory Provident Fund Schemes Authority (MPFA) has welcomed a survey by the Consumer Council on the MPF market.
The MPFA has agrees that trustees should reflect the interests of scheme members when handling their contributions.
MPFA’s chief operating officer of the compliance section, Hendena Yu, said: “We take the view that trustees should place contributions pending investment in interest-bearing accounts for the interest of scheme members.”
Yu explained that although some service providers had all along been depositing contributions pending investment in interest-bearing accounts, the majority of the rest are already taking steps to make the same arrangement.
She added that, where necessary, the MPFA may consider introducing amendments to its existing legislation to specify the requirement.
By Janet Du Chenne
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.