If there was any doubt that the issue of retirement fund provision was a political hot potato in Hong Kong, it has now been dispelled.

Having taken years to develop and launch, recent events have cast the Hong Kong Mandatory Provident Fund (MPF) as the villain as the government has sought to address public concern on a number of key issues.

Ahead of the MPF’s 10th anniversary, the government authority responsible for the system, the MPFA, announced plans to allow individual members to choose their investment funds from the entire market rather than remain limited by the options available under their employer’s selected provider. Public debate was stirred by the MPFA and focused on the potential impact that greater choice would have on overall fees. It is often argued that greater choice will lead to greater competition, which in turn equates to lower fees – in theory if not practice.