Executive councillor Henry Fan Hung-ling has been appointed chairman of the Mandatory Provident Fund Schemes Authority, putting paid to speculation he would become a government minister in July.
He takes over from fellow councillor Charles Lee Yeh-kwong next month and will serve for two years.
Mr Fan said one of the authority's big challenges was 'how to better protect employees' rights against unscrupulous employers'.
Tam Yiu-chung, a non-executive director of the authority, said its other major task would be implementing a proposal to raise the salary cap for MPF contributions by the schemes 2.3 million members to HK$30,000 a month, from HK$20,000.
Mr Fan, a 58-year-old barrister, had been seen as a frontrunner for the job since last year, but there had also been speculation he could join the government.
A government source said the authority was an important statutory body and an executive councillor would be a suitable person to oversee it.
Announcing the appointment, Financial Secretary Henry Tang Ying-yen said Mr Fan was a top business and financial leader in Hong Kong, whose rich experience and knowledge in both fields was widely recognised.
'With an exemplary record of public and community service, Mr Fan has the vision, leadership and capability to further the healthy and sustainable development of the MPF system,' Mr Tang said.
Mr Fan, managing director of red-chip company Citic Pacific, is a brother of Fanny Law Fan Chiu-fun, commissioner of the Independent Commission Against Corruption.
Mr Lee, 70, has headed the authority since 1998. The financial secretary said Mr Lee had laid a robust foundation for its continued development.
By December, the total net asset values of MPF-approved constituent funds was more than HK$200 billion.