The Employee Choice Arrangement has arrived, so workers may move the money in their Mandatory Provident Funds, but with restrictions. They may move only their own contributions, not the money paid by their employers, and they can do so only once a year.
Hongkongers have reacted to the liberalisation with ambivalence. People definitely want the freedom to move and, in particular, to push back on perceived poor service from their current MPF providers. But investors also complain that the new fund-switching reforms are too complicated and don't go far enough.
If you ask investors what irks them most about MPFs, the focus is on the poor service of their current (employer-selected) fund providers. In October, the Consumer Council highlighted MPF fund providers' high fees and low returns.
"I will definitely shift my provider, as the service is so poor," says a television reporter who requested anonymity. She is frustrated with the lack of information she receives from her MPF provider. "I get an annual statement, but no other information. There is no brief, no investment advice and no additional information," she says. "The other providers may not be very good, but I would like to change providers just to show I'm unhappy."
Mydy Lai, a hairdresser, likewise grouses about the quality of service seen with his MPF. "I rang the hotline for some information, and that was a terrible experience. I had to input many keys and follow a lot of instructions before I could talk to a real person. When I did, they were not familiar with the scheme," he says. Lai says he would compare the fees and service quality of other providers before deciding on a switch.
Simon Wong, a driver, also feels strongly about the data issue. "I have asked for information about my account and found that it is not easily obtained. The provider gives you only a statement and a hotline number. It usually takes a long time for anyone to pick up the phone," he says.
Wong does not have internet access at work and complains that many providers information only via the web.
