Ka Shi Lau, Managing Director & CEO, BCT Group
In the run up to the launch of the ECA, MPF providers put a lot of resources into systems, operation, sales, and marketing functions to help leverage this opportunity. However, according to Ka Shi Lau, Managing Director & CEO, BCT Group the market uptake was lower than expected—in part due to low member engagement. Despite this, as members now have greater discretionary power to choose their own MPF providers and asset mobility has increased, the service model has shifted from employer-based to member-based. By the same token, more diversified sales channels emerged to reach and target members. Lau added, “We also observed an increased level of activity for personal accounts in the market.”
Lau also stressed the importance of MPF providers communicating effectively with scheme members and employers to ensure they know what rights they have under ECA. In particular, it is essential that scheme members and employers know which types of accrued benefits are transferable. Investor education is equally important to help scheme members and employers make informed financial choices suited to their retirement objectives. Online tools can also help make this process simpler, as members are now able to manage more of their accrued benefits on their own.
Paul Arkwright
Publisher
