MPF exam MPF Schemes and Investment question: administration fee

Answer: C. not allowed, apart from necessary transaction costs payable to parties other than the trustee

Answer: not allowed, apart from necessary transaction costs payable to parties other than the trustee. Regardless of the frequency and type of transfer, no fees or financial penalties may be charged to a member, other than necessary transaction costs of buying and selling investments to effect the transfer that are payable to a party other than the approved trustee.Why not the others:• allowed once a year, in line with the yearly right to transfer: frequency does not matter; no fees may be charged on transfers apart from necessary transaction costs.• allowed for transfers made under the Employee Choice Arrangement: the ban applies regardless of the type of transfer.• allowed if the fee is shown in the scheme's fee table and the member is told before the transfer: disclosure in the fee table does not make a prohibited fee lawful.Watch out: Candidates think a disclosed fee is permitted.Rule: Transfers: no trustee fees or penalties.Source: MPF Study Notes, Tenth Edition (June 2026), 5.9(g)