Capability Awards - MPF

CAPABILITY AWARDS

The Capability Awards recognize MPF service providers who have demonstrated excellence, creativity and leadership – or a combination of these attributes – in the following activities. Please choose one or more categories:

CORPORATE GOVERNANCE

The “Corporate Governance” category aims to identify best practice MPF Trustees based on criteria which have a robust governance framework, infrastructure and an operating model that addresses the critical functions of the board’s role, responsibility and compensation, risk culture, people and talents, processes and technologies, and maintaining a diverse board of directors.  In addition to complying with the MPFA and SFC guidelines, how is the board’s oversight on the following executed and what are the accomplishments? Please explain:

  • The risk management and culture of your organization (Minimum 200 words)
  • The relevant committees and their policies and practices (Minimum 200 words)
  • Your firm’s commitment to a diverse board (Minimum 200 words)
  • Your firm’s principles for managing both internal and external stakeholders’ interests?  (Minimum 200 words)

COMPLIANCE

The “Compliance” category aims to identify best practice MPF Trustees who go beyond the most minimal regulatory requirement, and proactively build an effective defense system for internal control that well prepares the organization to face unanticipated market events and disruptive trends. The key criteria in this category includes the following. Please explain:

  • How your firm’s compliance integrates with the various business functions:
    • Process and rationale of integrating compliance into business functions (minimum 200 words)
    • New product development (minimum 100 words)
    • Product and other training (minimum 100 words)
    • IT and technology framework, including data collection, data privacy, data processing (minimum 100 words)
  • the role and responsibility of the CCO (minimum 100 words)
  • transparency between the business owners, process owners and audit. (minimum 100 words)

RISK MANAGEMENT

The “Risk Management” category aims to identify best practice MPF Trustees who have best-in-class risk control infrastructures, practices and outcomes. Please demonstrate your firm’s foresight, vision and accomplishments on the following:

  • Integration of risk management into key functions, from the front to the back offices, for greater competitiveness and operational safety and efficiency (minimum 200 words)
  • employing digital innovation while mitigating concerns derived from cyber-attacks (minimum 200 words)
  • protection of data privacy, and the vulnerabilities emerged from automation (minimum 200 words)
  • digitization and global expansion of your firm’s digital ecosystems.
  • governance protocol for decision-making processes (minimum 100 words)

BRAND OF THE YEAR

The Brand of the Year Award recognizes an MPF Provider whose brand strategy best demonstrates the ability to connect with the public and increase their perceived brand trustworthiness and admiration. This category is not open for self-nomination. Results are determined strictly by the findings of 2,000 qualified respondents who are active clients, prospective clients and non-prospective clients based on their client experience with the provider, digital satisfaction, advisory capability, brand familiarity, support and service received. 

A Brand Popularity Index ranking will also be drawn on all the providers to be integrated to the overall weighting.

CORPORATE CITIZENSHIP

Ethics and business conscience are becoming increasingly important to investors, especially millennials who feel they are responsible for the well-being of this planet. Good corporate citizenship goes beyond simply making donations or volunteering, and looks at the intangible value created by addressing key environmental issues, human capital issues and corporate governance issues.

Please explain why you should win this award based on the following criteria:

  • Environmental: Contribution to reducing carbon emissions, product carbon footprint, electronic waste, water stress, electronic waste, and improving energy efficiency and raw material sourcing. (Minimum 200 words)
  • Social: Ensuring employees’ health and safety, financial product safety and quality, human capital development, privacy and data security, and governing the supply chain labor standards and labor management. (Minimum 200 words)
  • Governance: Putting policies in place for business ethics to avoid fraud and corruption, ensuring best practices in corporate governance, women’s representation on the board, shareholders’ rights, and ensuring financial system stability. (Minimum 200 words)
  • Social Impact: Implementing projects with positive impact on the community and humanity in general through corporate philanthropy, business activities or other means. (Minimum 200 words)

EMPLOYER SUPPORT

This Award recognizes an in-house team of an MPF Provider that has demonstrated achievements in the following areas. Please describe your efforts and accomplishments in:

  • Online Support: Whether the provider offers a streamlined on-boarding process for new employee enrollment, and whether forms are easily accessible and the submission process is well organized. (Minimum 100 words)
  • Communication and Reporting: Whether the portal/statement provides an interactive portfolio overview, performance and risk figures accompanied by the company’s commentaries and messages, and keeping the employers abreast of new legislation and regulations. (Minimum 100 words)
  • Measuring Success: What are the key indicators used to measure client satisfaction, what mechanisms are used for collecting and measuring end customers’ feedback, what has been the attrition rate and whether this effort demonstrates impressive growth for assets under administration? (Minimum 200 words)
  • Service Pledge:  Please describe your service pledge to the employer, describing your service level, charges, administrative undertakings, updates on regulatory changes, etc. (Minimum 100 words)

HUMAN CAPITAL DEVELOPMENT

Good people are assets and successful retention is half the battle. We are looking for a company who adopts best practices in recruiting, managing and retaining the talent pool. Companies who care deeply about the health, safety and wellness of their employees and have cultivated a healthy workplace, should consider entering this category.

Please explain why you should win this award based on the following criteria:

  • Retention: Ability to attract, retain, and develop human capital, as well as the exposure to risks of increased costs associated with high employee turnover or reduced productivity resulting from poor morale. (Minimum 200 words)
  • Engagement: Formal employee engagement channels, broad-based professional development, training opportunities and implementing flexible work hours. (Minimum 200 words)
  • Benefits: Comprehensive compensation and benefits packages, provides annual profit-sharing bonuses, giving employees a substantial and concrete stake in the company’s success on a regular basis. Also offers incentives not just in short-term activities but with their benefits aligned to customers’ long-term interests and benefits. (Minimum 200 words)
  • Culture: The company empowers professional and personal growth through demonstration of strong leadership, communication, culture, and corporate social responsibility. (Minimum 200 words)
  • Diversity and Inclusion: Best practice policies in place to broaden the pool of talent to include all genders, races and ages. (Minimum 200 words)

INVESTOR EDUCATION

This award aims to identify a company’s strategy that is best aligned with improving investor knowledge and relations.  Judges will be looking for providers with best-in-class characteristics in the following areas. Please describe your efforts and accomplishments in:

  • Key Initiatives: What are the programs/initiatives used to educate and inform the public and do they demonstrate ongoing leadership in the MPF industry, integrating best performing managers and analyst teams, and advocating employee freedom of choice etc.? (Minimum 200 words)
  • Impartiality: Whether the information offered is objective and balanced and whether it displays a fair amount of discussion on potential risks and is not designed to merely push and promote the company’s products? (Minimum 100 words)
  • Sales Support: Whether there is a client support infrastructure to help advisors receive updates on educational materials that enhance ethical selling and advice? (Minimum 100 words)
  • Education: The company strives to ensure that consumers acquire a general understanding of core financial concepts, the risks and returns associated with different types of financial assets and some understanding of their own tolerance for risk. (Minimum 100 words)
  • Commitment: The organization demonstrates a commitment to consumers as life-long learners, with programs that take into account the increased complexity of markets and financial products, and undergoes regular assessment of program effectiveness. (Minimum 100 words)

MEMBER SERVICING

This Award recognizes an in-house team of an MPF Provider that has demonstrated its achievements in the following areas. Please describe:

  • Putting the Members First: Whether the process clearly puts its end customers’ needs first and whether it has a structured approval process to ensure end customers’ satisfaction through tracking and improvements of end customer satisfaction rates, customer retention rates, response time, and ability to provide accurate, clear and usable information. (Minimum 200 words)
  • Empowerment of Members: Whether there are tools to enable customers to do things themselves and become more engaged in the process – tracking their existing portfolio holdings, researching new investment opportunities and comparing with other investments outside of the company’s. (Minimum 100 words)
  • Communication and Reporting: Whether the portal/statement provides an interactive portfolio overview, performance and risk figures accompanied by the company’s commentaries and messages. (Minimum 100 words)
  • Measuring Success: What are the key indicators used to measure client satisfaction, and what are the mechanisms for collecting and measuring end customers’ feedback? (Minimum 100 words)
  • ECA Effort: Whether the team and process is robust enough to provide timely service to clients who actively utilize the benefits ECA to manage their retirement account, and whether there is a mechanism to detect unusual and unethical behavior. (Minimum 100 words)
  • DIS Implementation: What are the proactive initiatives taken to educate the members on the implementation of DIS and whether a fair approach has been taken to inform the members of its pros and cons and what factors they should consider when contemplating such strategies (Minimum 100 words)

PRODUCT DUE DILIGENCE

While it is not the primary business for an MPF Provider to be managing clients’ investments directly, the fiduciary duties of the trustees to safeguard members’ assets through the MPF schemes remain critically important. We are looking to award companies who have incorporated a comprehensive risk management system and methodologies used for screening of investment products. Whether there is senior management participation from business units, legal, compliance, risk management and operations on new product offerings, vetting, and on-going monitoring.

Please explain why you should win this award based on the following criteria:

  • Product Safety and Quality: Whether the company has undergone a stringent process to find the best underlying managers that are the least costly, complex, or risky to achieve its objectives. (Minimum 200 words)
  • Process: A comprehensive risk management system and methodologies used for investment screening. Whether there is senior management participation from business units, legal, compliance, risk management and operations on new product offerings, vetting, and on-going monitoring. (Minimum 200 words)
  • Governance: Whether there is a rigorous governance process that helps make sure fund managers have a solid track record in both quantitative and qualitative management, to achieve best-in-class performance, risk management, managers’ tenure, fee structure and investment process. (Minimum 200 words)

ESG Integration: Whether the company has incorporated Environmental, Social and Governance (ESG) factors into investment decisions, and its commitment to

SUSTAINABLE INVESTMENT STRATEGIES

The Sustainable Investment Award recognizes a sustainability leader in the MPF industry who has successfully integrated ESG into the fund selection process by incorporating the following criteria for the managers who are selected and placed on the scheme:

  • Scope of Application: The underlying fund manager’s ESG policies & procedures for specific asset classes should be clear, and whether there is a plan to extend the scope of application in the future to further asset classes. (Minimum 100 words)
  • ESG Policies & Procedures: Whether the selected managers have clearly disclosed policies and procedures for integrating ESG information and metrics into the investment process, for example: stated ESG criteria of focus, sector-specific ESG policies and/or exclusion lists, investment committee review of ESG exposures, accountability of fund managers for ESG integration. (Minimum 200 words)
  • Outcomes: Relative to an external benchmark, the relevant portfolio outperforms the benchmark in at least one area of ESG evaluation (e.g. outperforms the environmental risks/opportunities inherent in the MSCI World portfolio). (Minimum 100 words)
  • Engagement: Whether the selected fund manager has an investment process that provides evidence of including ESG concerns into company engagement. For example: due diligence questionnaires, due diligence documentation, proxy voting policies, working collaboratively with other investors to highlight ESG issues. (Minimum 100 words)
  • Stewardship: Whether the selected fund manager discloses a clear policy on stewardship that includes certain best practices in ensuring the protection of shareholders’ capital, for example, a commitment to monitoring of and engaging with underlying companies, managing conflicts of interest, proxy voting and acting collectively with other investors. (Minimum 100 words)