The Government will amend the mandatory provident fund regulation to enhance protection of MPF scheme members' interests, improve the investment rules' operation, and increase flexibility of, and remove undue restrictions on, MPF investment.

If the Legislative Council House Committee decides it is not necessary to form a subcommittee to scrutinise the Amendment Regulation, the Government will move a motion to pass this Amendment Regulation on June 14.

The Financial Services & the Treasury Bureau said the proposed amendments aim to enhance the investment regulations regarding MPF funds, adding service providers will have sufficient time to adjust the existing investment portfolios and relevant systems.

In the area of enhancing protection of MPF scheme members' interests, there are proposed amendments for ensuring that MPF funds will not be overexposed to investments in any single entity, and clarifying the types of investments that are to be treated as deposits so that investments of MPF funds in structured products will be properly regulated. 

MPF investment to be more flexible

As to enhancing flexibility of MPF investment, there are proposed amendments for introducing a mechanism to determine whether emerging investment products should be included as permissible investments, and removing doubts about the ability of MPF funds to acquire new shares through initial public offers.