MPF exam Introduction to the eMPF Platform question: eMPF cost-saving requirements

MPF examIntroduction to the eMPF Platform

Which two of the following statements about the eMPF cost-saving requirements are correct? (i) both are voluntary codes that trustees may choose to adopt (ii) corresponding fee reduction requires fund expense ratios to fully reflect cost savings (iii) the cost savings are kept by the eMPF Company to fund future expansion (iv) straight pass-on caps trustees' administration fee at the eMPF Platform fee they pay

A (i) and (iii)
B (i) and (iv)
C (ii) and (iii)
D (ii) and (iv)

Show the answer and explanation

Answer: D. (ii) and (iv)

Answer: (ii) and (iv). Statements (ii) and (iv) describe the two statutory requirements; (i) and (iii) misstate them.(i) False. Both are requirements stipulated in the MPFSO.(ii) True. This is the corresponding fee reduction requirement.(iii) False. The policy objective is that savings pass directly to scheme members.(iv) True. This is the straight pass-on requirement.Why not the others:• (i) and (iii): includes the false (i) and (iii) and omits the true (ii) and (iv).• (i) and (iv): includes the false (i) and omits the true (ii).• (ii) and (iii): includes the false (iii) and omits the true (iv).Watch out: Thinking the requirements are voluntary.Rule: MPFSO: straight pass-on and corresponding fee reduction, so savings reach scheme members.Source: MPF Study Notes, Tenth Edition (June 2026; examinable from 1 Oct 2026), section 8.3 (checked 31 Oct 2026)