HSBC Provident Fund Trustee (Hong Kong) has entered negotiations with several Mandatory Provident Fund (MPF) service providers to offer them trustee and custodian services, according to managing director Jonathan Hubbard. Mr Hubbard declined to identify the companies that were negotiating with the trustee company. The company is one of the 21 trustees granted licences on Saturday by the Mandatory Provident Fund Schemes Authority (MPFA). Its plan to provide trustee and custodian services for other MPF services providers as well as its sister company HSBC Insurance would further strengthen the HSBC group's position in the MPF market. HSBC Insurance is currently the largest SAR pension-fund provider in Hong Kong. Two months ago, it announced an ambitious target to secure a 40 per cent share of the proposed MPF market, the same as its market share of the existing pension market. The 360 SAR branches of HSBC and Hang Seng Bank will sell the product for the group. Mr Hubbard said there would not be any conflict of interest for the trustee to offer services for other MPF service providers while it would also provide the same services for its sister company. 'We are an independent trustee company,' he said. Mr Hubbard said it would also provide trustee services for other fund-management companies as well as HSBC Asset Management. Some MPF service providers only want to provide administration or investment services for MPF clients. They would need to hire an independent trustee to provide the services for them, Mr Hubbard said. MPF