Provident funds examined

PUBLISHED : Saturday, 07 January, 1995, 12:00am
UPDATED : Saturday, 07 January, 1995, 12:00am

THE Consumer Council will study the way provident funds are run, following complaints lodged by Caritas Hong Kong's staff association.

Council chief executive Pamela Chan Wong Shui said the study would look into whether certain conditions stipulated by fund managers were fair.

The study would also help determine whether administration fees charged by fund managers should be capped.

Eight staff representatives from the Caritas Hong Kong Staff Association appealed to the council to take a closer look at the way retirement schemes were run. They had disagreed with the management of the group's provident fund by HSBC Life Group.

Mrs Chan said the Government had the responsibility to thoroughly consider its role in monitoring fund managers at a time when retirement schemes were gaining importance in Hong Kong.

She said it was not enough to check fund managers' solvency, as the fairness of contract terms had to be examined to protect consumers.

It was also important for fund managers to give more information to their customers and explain their investment strategies and fees.