The Hong Kong General Chamber of Commerce has announced the formation of an alliance with CMG Asia Life Assurance to offer Mandatory Provident Fund (MPF) services to its 4,000 corporate members. This is the first time a business association has linked with an insurance company to offer provident fund business. In addition, the chamber and CMG Asia have submitted an application to the Mandatory Provident Fund Schemes Authority for approval of their Chamber CMG MPF product. Sales could begin in February if approval is given. 'There is a real need among our members for MPF solutions,' chamber chairman Tung Chee-chen said. 'And they have indicated they would like the chamber to further respond to their needs. 'The alliance with CMG Asia, which would provide one-stop MPF services, would offer professional services to our members.' Mr Tung said the chamber would not force members to buy its product, and they were free to choose other providers. Non-chamber companies could also buy the product, he said. Chamber director Eden Woon Yi-teng said 75 per cent of members were small and medium-sized enterprises which would be most affected by next year's launch of the proposed fund plan. The plan requires the 300,000 companies which do not have a pension scheme to set up a fund plan for their staff. Under the alliance, CMG Asia would be the trustee, administrator and investment manager of the fund product. It would also provide a telephone hotline for chamber members on fund-related information. CMG Asia managing director Gary Bennett said the alliance would provide many opportunities for fund business. It would also help ensure that CMG Asia achieved its target of securing 20 per cent market share in fund provision, he said. Formed in 1861, the Hong Kong General Chamber of Commerce is the largest and oldest business organisation in the SAR. Its 4,000 member companies have a combined 1.5 million employees.
