The Mandatory Provident Fund Authority (MPFA) is expected to be set up in June, after the provisional legislature yesterday approved $5 billion in one-off funding to set up and operate it. The MPFA is the regulatory body that will regulate, supervise and approve licences for the MPF service providers and for scheme products, and to monitor complaints from scheme members. Secretary for Financial Services Rafael Hui Si-yan yesterday said: 'The timetable for the implementation of the MPF scheme will be decided by the MPFA, but I predict the scheme will begin at the end of next year or early 2000.' Mr Hui said he hoped non-executive directors of the management board and members of the MPFA advisory committee would be appointed by Chief Executive Tung Chee-hwa in June. The MPFA will be ruled by a board of at least 11 members. Mr Hui said three models for the board would be considered: the first would consist of employer and employee representatives; the second would invite different political parties to join the board; the third would be a combination of the other two models. Mr Hui said the MPF office's 22 staff, who helped draft the MPF legislation over the past three years, would take up the executive work of the MPFA when it starts in June. 'I think the MPF office staff need to work there until market professionals are employed to work for the MPFA,' he said. A consulting company will be appointed soon to report on salaries and the MPFA's detailed structure. According to an MPF office paper submitted to the Legco Finance Committee yesterday, the MPFA will have 260 staff. It will be headed by a managing director, with four executive directors who will head four divisions - the existing occupational retirement schemes (Orso), regulatory and supervision, external affairs, and information technology. The Orso registrar, at present administrated by the Insurance Commissioner, will be split from the office to be combined with the MPFA.