Insurer seeks part in scheme

One of the largest retirement scheme providers in the United States, Principal Financial Group, has set up Principal Trust Co (Asia) in Hong Kong to prepare for the Mandatory Provident Fund scheme expected to be launched next year.

Principal Insurance Co (Hong Kong), the group's insurance unit in Hong Kong, plans to join the provident fund market.

The insurer's chief executive officer Rex Auyeung said the trustee company would support the retirement arm, and was a further extension of the group in Asia.

He said the company would not set up a team to sell the fund but seek to link up with companies or banks which have a sales network.