Hong Kong Mandatory Provident Fund Schemes Authority confirms eMPF Platform fee cut to 29 bps from 1 April 2026

The Hong Kong Mandatory Provident Fund Schemes Authority (MPFA) announced that the Financial Secretary has approved a lower eMPF Platform fee for the 2026-27 financial year. Effective 1 April 2026, the fee charged by eMPF will fall from 37 basis points to 29 basis points of an MPF scheme’s assets under management, a 21.6% reduction. MPFA linked the reduction to the platform’s standardised, streamlined and automated administration model and the eMPF Company’s non-profit operating approach, noting that fees have already fallen from an average of 58 bps to 37 bps since the platform’s launch and will move to 29 bps under the new approval. Under the MPF legislation’s “straight pass-on” requirement, trustees’ scheme administration fees must not exceed the eMPF fee they pay to the eMPF Company, requiring any administrative cost savings achieved through eMPF to be fully passed through to scheme members; MPFA also reported that estimated administrative cost savings have been raised from HKD 30 billion to HKD 40 billion over 10 years to HKD 50 billion in less than 10 years, citing higher-than-expected digital usage over the past 22 months, economies of scale and MPF asset growth. Looking ahead, the eMPF Company plans to increase digital usage and maintain strict cost control with a view to creating further scope for fee reductions.