Hong Kong's pension fund authority considers capping fees amid criticism
Top accounting firm hired to look at ways of reducing costs to savers, as bosses say they are dissatisfied with 'speed and levels' of cuts

Hong Kong's pension regulator is considering capping the fees of Mandatory Provident Fund providers amid concerns they are charging too much.
Diana Chan Tong Chee-ching, managing director of the Mandatory Provident Fund Schemes Authority, said yesterday the authority had appointed accounting firm Ernst & Young to carry out a study on ways to reduce MPF fees.
Based on the results of the study, the authority will propose a range of measures next month.
"Adding a cap on fees would definitely be one of the options we will consider ," Chan said.
"Hong Kong is a free market. However, if free market competition pressure cannot bring fees down, we have to consider adding a cap."
The authority has not provided details of the cap such as the threshold or what type of funds would be affected. Chan said any proposal would be subject to government decision after a public consultation.
The MPFA is also considering a mandatory requirement for all MPF schemes to have at least one low-fee fund. At present, only 15 of the 39 MPF schemes have provided 21 low-fee funds, collecting 0.7 per cent to 1.23 per cent.