If MPF provider goes bankrupt...?

[drumbrake]

What would happen if my MPF provider (AIA-JF) went bankrupt? I suppose they would be taken over first, perhaps, and I would hope my fund investments would still be mine - are they?

A follow up question -what'sthe connection between AIA-JF and AIG?

[HKLozzo]

What would happen if my MPF provider (AIA-JF) went bankrupt? I suppose they would be taken over first, perhaps, and I would hope my fund investments would still be mine - are they?

A follow up question -what'sthe connection between AIA-JF and AIG?

My MPF is also with AIA-JF, though i was wondering should i change my funds around; dump the US funds for now and swap to Asian or European ones? I would assume that AIG is big enough to ride out the storm? Anyone have any advice?

As far as the relationship between AIA & AIG, as far as i know, AIA are the Insurance arm ( American International Assurance ) and AIG are the parent group. So i guess that AIA-JF are a subdivison of AIA.

[freeier]

funds are segregated from the bank/company.
they are overseen by a trustee that holds the asset in place of the investors. if the fund holds alot of AIG and Lehman then you would suffer losses but generally each fund would have a concentration limit that stop it from buying more than 10% of its asset in any single company/bond.

[drumbrake]

AIA-JF Asset Management is part of JP Morgan Asset Management.

HKLozzo is right - AIA is a member of AIG.

[Star Gazer]

AIG needs 40B , the gov't has given them a 20 B lifeline...

NEW YORK: Struggling US insurance giant American International Group was thrown a lifeline Monday by New York authorities, who said the company could borrow some US$20 billion from its subsidiaries.

[HKLozzo]

I also heard from a colleague, that a company's assets held in HK, must remain in HK and cannot be transferred out of HK? Is this the case?

1. If it is true, then for example, AIG cannot use the assets of AIA HK to prop up AIG back in the states?
2. So, as reported by the BBC, "The State of New York has announced a "multi-billion dollar financing plan" to stabilise the finances of American International Group (AIG).

Under the plan, the insurance firm will be able to gain access to some $20bn (£11.1) by transferring assets in subsidiaries to the parent company." AIG cannot touch AIA assets in HK and presume will have to rely on subsidiaries based in the US only?

3. This would lead me to think that any life insurance or MPF in HK would be relatively safe, as long as AIG can sustain itself by using assets from other subsidiaries?

I could quite easily have this all back to front though

[freeier]

AIG needs 40B , the gov't has given them a 20 B lifeline...

NEW YORK: Struggling US insurance giant American International Group was thrown a lifeline Monday by New York authorities, who said the company could borrow some US$20 billion from its subsidiaries.

fed is asking JPM and Goldman to provide them with a USD$70 BILLION facility for them to tie over the cash crunch.

key was the downgrade on their corporate ratings.. leading to alot of cash call and collateral placements.

[freeier]

I also heard from a colleague, that a company's assets held in HK, must remain in HK and cannot be transferred out of HK? Is this the case?

1. If it is true, then for example, AIG cannot use the assets of AIA HK to prop up AIG back in the states?
2. So, as reported by the BBC, "The State of New York has announced a "multi-billion dollar financing plan" to stabilise the finances of American International Group (AIG).

Under the plan, the insurance firm will be able to gain access to some $20bn (£11.1) by transferring assets in subsidiaries to the parent company." AIG cannot touch AIA assets in HK and presume will have to rely on subsidiaries based in the US only?

3. This would lead me to think that any life insurance or MPF in HK would be relatively safe, as long as AIG can sustain itself by using assets from other subsidiaries?

I could quite easily have this all back to front though

well, you have to know the system.

your colleague is not right, funds can be transferred out of HK if it is structured that way (e.g. US issued note/debt, or luxemborg registered fund).

but NO, a fund is officially own by the investors. AIG/AIA do not own any assets inside the fund you have invested in, unless they have seed investment.

so in all aspect, even if AIA is to go bankrupt, the funds invested by you guys will belong to you and the assets will remain under the trustee's care (whether in HK or elsewhere in the world). that part is retail investor protection.

[Claire ex-ax]

Just fyi on the MPF provider going bankrupt, MPF trustees are required to take out insurance to indemnify their members against any losses of assets caused by misfeasance or misconduct of the trustees or their service providers. Also the government established a statutory Compensation Fund to compensate members should the indemnity insurance not fully cover those losses.

[squid]

Just fyi on the MPF provider going bankrupt, MPF trustees are required to take out insurance to indemnify their members against any losses of assets caused by misfeasance or misconduct of the trustees or their service providers. Also the government established a statutory Compensation Fund to compensate members should the indemnity insurance not fully cover those losses.

I dated both Miss Feasance and Miss Conduct years ago. I wonder how they're getting on? hmmm...

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