The Government and the life insurance industry have squared off in what could prove to be the most important debate in the long-running Mandatory Provident Fund (MPF) saga.
The question of restrictions on investment of the $40 billion a year fund pouring into the coffers of the fund management industry was always going to be vexed.
Just how unhappy the territory's fund managers are becoming was evident this week when their normally measured tones gave way to something close to the language of confrontation.
The Government's plans to restrict asset classes and sectors was, the Hong Kong Federation of Insurers claimed, both paternalistic and anti-competitive.
Until now there has been widespread support for, and involvment with, the Government in most aspects of the scheme.
The issue which is dividing former allies is simply one of how best to protect the interests of the territory's future pensioners.
