Cap. 485 《強制性公積金計劃條例》Mandatory Provident Fund Schemes Ordinance

This Ordinance may be cited as the Mandatory Provident Fund Schemes Ordinance.

(Omitted as spent—E.R. 1 of 2013)

In this Ordinance, unless the context otherwise requires— (Amended 4 of 1998 s. 2)

(Amended 4 of 1998 s. 2; 11 of 2009 s. 3; E.R. 4 of 2019)

If relevant employees—

the Authority may, by order published in the Gazette, declare those employees to be casual employees for the purposes of this Ordinance. (Added 4 of 1998 s. 2)

For the avoidance of doubt, it is hereby declared that an amount that is paid as a contribution to a registered scheme contingently on the basis that the amount will later constitute a mandatory contribution to the scheme shall for all purposes be treated as a mandatory contribution to the scheme (and the provisions of this Ordinance shall apply accordingly) unless and until it is certain that the amount will not constitute a mandatory contribution to the scheme. (Added 2 of 2002 s. 2)

Subsection (5) applies if—

The requirement referred to in subsection (4)(a) is complied with if the document or information is provided or given (however described) in the form specified by the system operator of the electronic MPF system for the purposes of Part 3B. (Added 40 of 2021 s. 3)

The persons specified in Part 1 of Schedule 1 are exempt from the provisions of this Ordinance to the extent described therein.

The Chief Executive in Council may, from time to time, specify in Part 2 of Schedule 1 the persons or classes of persons who shall be exempt from all or part of the provisions of this Ordinance (as identified or contained in the specification), and may vary, alter or repeal that specification. (Amended 4 of 1998 s. 2)

Subject to subsections (4) and (5) and section 11(1) and (2), any person entering Hong Kong for the purpose of being employed or self-employed— (Amended 2 of 2002 s. 3)

shall be exempt from the provisions of Part 3. (Amended 16 of 2012 s. 5)

The regulations may make provision for the purposes of this section and may, in particular, specify the circumstances in which the exemption of a person referred to in subsection (3) is to apply. (Replaced 4 of 1998 s. 2)

The Authority may, by certificate in writing, exempt the members, or a class of members, of an occupational retirement scheme and their employer from the operation of all, or any specified, provisions of this Ordinance and, in so doing, may specify circumstances in which the exemption is or is not to apply.

The Authority may grant an exemption—

If an exemption is granted in respect of an occupational retirement scheme, the provisions of this Ordinance, or the provisions of this Ordinance specified in the exemption certificate, do not, subject to subsection (3A), apply to the members or relevant class of members of the scheme, or to the employer of those members in relation to the scheme. (Amended 7 of 2019 s. 11)

However, if the members or relevant class of members of the occupational retirement scheme has a TVC account, subsection (3) does not operate in relation to the members or class to disapply the provisions of this Ordinance that relate to tax deductible voluntary contributions and TVC accounts. (Added 7 of 2019 s. 11)

An exemption may be granted in respect of an occupational retirement scheme under this section whether the scheme is a defined contribution scheme or a defined benefit scheme.

The regulations may—

The Authority must establish and maintain a register of occupational retirement schemes in respect of which an exemption has been granted under section 5. The register may be in such form, and contain such information, as the Authority may determine.

The register is to be kept at the head office of the Authority in Hong Kong.

Members of the public are entitled, without charge, to inspect the register during the ordinary business hours of the Authority.

There is established by this section a corporation with the corporate name of “Mandatory Provident Fund Schemes Authority”.

The Authority—

The Authority is required to have a seal.

The receipts of the Authority, and those of its wholly owned subsidiaries, are not subject to taxation under the Inland Revenue Ordinance (Cap. 112). (Added 40 of 2021 s. 4)

The Authority is to consist of not fewer than 10 directors appointed by the Chief Executive.

Of the directors—

Of the non-executive directors—

In appointing the directors, the Chief Executive must ensure that—

A director must exercise a reasonable degree of care and diligence so as to ensure that the Authority exercises and performs its functions properly.

The Authority may exercise or perform any of its functions despite a vacancy in its membership.

Schedule 1A has effect with respect to the directors and procedure of the Authority.

The Chief Executive is to appoint one of the executive directors as the Managing Director of the Authority.

The Managing Director—

The Chief Executive is to appoint one of the non-executive directors to be the chairperson of the Authority.

The Chief Executive may appoint one of the directors to be the deputy chairperson of the Authority. (Replaced 40 of 2021 s. 5)

A person holding office as chairperson or deputy chairperson of the Authority ceases to hold that office on ceasing to be a director of the Authority. (Amended 40 of 2021 s. 5)

The Authority may establish committees to give advice and assistance to the Authority in connection with any matter with which the Authority is concerned.

The Authority may appoint any person to be a member of a committee. A member of a committee is not required to be a director of the Authority.

The Authority may, at any time, remove such a member from office by notice in writing given to the member. A member of a committee may, at any time, resign from membership of the committee by giving notice in writing to the Authority.

The procedure for convening meetings of a committee and for the conduct of business at those meetings is to be as determined by the Authority or (subject to any determination of the Authority) by the committee.

In exercising its functions, a committee is required to comply with any direction given by the Authority.

The functions of the Authority are as follows—

The Authority has such ancillary powers as may be necessary to enable it to exercise its functions.

The Chief Executive may give directions, either generally or in a particular case, with respect to the exercise by the Authority of its functions. The Authority must comply with any such directions unless they are inconsistent with this Ordinance.

The functions of a specified entity are as follows—

The Financial Secretary may assign any particular function to a specified entity (whether or not as the system operator of an electronic MPF system) if the Financial Secretary is satisfied that it is appropriate and in the public interest for the specified entity to perform the function.

A specified entity may—

The Authority may in writing delegate any of its functions, other than a specified function, to—

The Authority may in writing delegate to a specified entity any of its functions, other than—

When the Authority delegates a function under subsection (1) or (2), the Authority may authorize (with or without conditions) the delegate to subdelegate the function.

Schedule 1B has effect in relation to a delegation or subdelegation under this section.

In this section—

The Authority may employ such staff as it requires to exercise or perform its functions.

The Authority may, after consultation with the Financial Secretary, fix the salaries, wages and other conditions of employment of its staff.

The Authority may enter into arrangements (additional to those provided for by this Ordinance) for the provision of retirement benefits to its staff and their dependants spouses and children. Those arrangements may (but are not required to) include provisions requiring members of the Authority’s staff to make contributions towards those benefits from their own funds.

The Authority may— (Amended 40 of 2021 s. 10)

The Authority may arrange for any of its staff to assist in the operations of a wholly owned subsidiary. (Added 16 of 2020 s. 7)

The Authority may issue guidelines for the guidance of approved trustees, service providers, participating employers and their employees, self-employed persons, regulated persons and other persons concerned with this Ordinance. (Amended 16 of 2012 s. 7)

A guideline—

A guideline may require persons (including persons belonging to a class) specified in the guideline to give to the Authority information or documents of a kind specified in the guideline. The guideline may only specify information or documents of a kind that the Authority reasonably requires for the exercise or performance of its functions. This subsection has effect whether or not regulations are made for the purposes of section 21C(2)(k), 22A(2)(b) or 46(1A)(t).

The Authority must publish a guideline issued under this section in the Gazette or in some other publication determined by the Authority.

The Authority may amend or revoke a guideline issued under this section. Subsection (4) applies to the amendment or revocation of a guideline in the same way as it applies to the issue of a guideline.

A person does not incur a civil or criminal liability only because the person has contravened a guideline issued under this section. However, if in any legal proceedings the court is satisfied that such a guideline is relevant to determining a matter that is in issue in the proceedings—

In any legal proceedings, a document that purports to be a copy of a guideline issued under this section is, in the absence of evidence to the contrary, to be presumed to be a true copy of the guideline.

Despite anything in this Ordinance, the Authority must consult the Insurance Authority, the Monetary Authority, and the Securities and Futures Commission, regarding guidelines that it proposes to issue under this section, or any amendment or revocation that it proposes to make in relation to guidelines issued under this section, in so far as those guidelines apply, or the amendment or revocation applies, to regulated persons. (Added 16 of 2012 s. 7)

As soon as practicable after the end of each financial year of the Authority, the Authority must prepare a report as to—

As soon as practicable after preparing a report in accordance with this section, the Authority must deliver the report to the Financial Secretary, together with—

The Financial Secretary may publish the documents delivered in accordance with subsection (2) in such manner as the Financial Secretary thinks fit.

The Authority must, before the end of each financial year of the Authority, prepare a corporate plan for its next financial year.

A corporate plan must specify—

Before completing the preparation of a corporate plan, the Authority must submit a draft of the plan for approval by the Financial Secretary and must take into account any comments made by the Financial Secretary on the draft.

As soon as practicable after completing the preparation of a corporate plan, the Authority must deliver the plan to the Financial Secretary.

The Financial Secretary may publish the corporate plan delivered in accordance with subsection (4) in such manner as the Financial Secretary thinks appropriate.

The Authority may also, if it thinks fit, attach to a corporate plan a proposed corporate plan for 1 or more financial years following the financial year to which the first-mentioned plan relates.

The Authority may, whenever it considers necessary, provide the Financial Secretary with a report as to any improvements that it considers to be necessary for the effective or efficient operation of the Authority.

The Financial Secretary may, from time to time, request the Authority to provide the Financial Secretary with a report as to—

The Authority must comply with a request made under subsection (2) as soon as practicable after receiving it.

The Authority may designate an electronic system for use for the purposes of this Ordinance (other than Part 3B). (Amended 40 of 2021 s. 11)

The Authority may designate under subsection (1) an electronic system that is established and operated by— (Amended 16 of 2020 s. 8)

An approved trustee who uses, or is required by law to use, a designated electronic system must take any action specified by the Authority as being necessary for ensuring the proper and efficient operation of the system.

The Authority or the wholly owned subsidiary operating a designated electronic system (operator) may recover from a person who uses the system any fee or charge paid or payable by the operator to a third party in relation to the operation and administration of the system that is attributable to the person’s use. (Replaced 16 of 2020 s. 8)

The Authority may, if it reasonably considers it necessary to do so, suspend a designated electronic system from being used for the purposes of any provision of this Ordinance in relation to which the electronic system is designated.

A suspension under subsection (5)—

As soon as practicable after making a designation under subsection (1) or a suspension under subsection (5), the Authority must publish information about the designation or suspension in any manner that the Authority considers appropriate.

In this section—

The Authority must establish and maintain at a bank located in Hong Kong an account called in English the “MPFA Administration Account” and in Chinese “強制性公積金計劃管理局行政帳戶”.

There is payable into the Account all money received by the Authority (other than money paid to or recovered by the Authority for the benefit of a scheme member), including interest received in respect of investments and all money directed to be paid into the Account by this or any other Ordinance. (Amended 30 of 2008 s. 2)

There is payable from the Account all payments made on account of the Authority or otherwise required to meet the expenditure incurred in relation to the functions of the Authority (including the remuneration of the Managing Director and the other staff of the Authority) and all money directed to be paid from the Account by this or any other Ordinance.

The Authority must keep such accounting records as correctly explain its financial transactions and financial position and so that—

The Authority must ensure that the following financial statements are prepared as soon as practicable after the end of each financial year of the Authority—

The Authority must ensure that the financial statements comply with any accounting standards notified to the Authority in writing by the Financial Secretary.

As soon as practicable after the commencement* of this section, the Authority must appoint an auditor to audit the accounts of the Authority.

As soon as practicable after a vacancy occurs in the office of auditor, the Authority must appoint another auditor to fill the vacancy.

An appointment under this section does not take effect until it is approved by the Financial Secretary.

The Authority may terminate the appointment of an auditor of the Authority but only with the prior approval of the Financial Secretary.

Not later than 6 months after the end of each financial year of the Authority, or such longer period as the Financial Secretary approves in writing, the Authority must submit the financial statements prepared for the financial year to the Authority’s auditor for auditing.

As soon as practicable after receiving financial statements submitted by the Authority, the Authority’s auditor must audit the statements and prepare a report of the audit.

The auditor’s report must state whether or not the financial statements are, in the auditor’s opinion, properly drawn up so as to provide a true and fair view of the matters referred to in section 6N(2) and in accordance with the accounting standards (if any) notified under section 6N(3) and, if not, the reasons for that opinion.

The Authority’s auditor is entitled—

As soon as practicable after completing the audit and preparing the auditor’s report, the Authority’s auditor must—

On receiving the audited financial statements and auditor’s report on those statements, the Authority must deliver a copy of those documents to the Financial Secretary.

The Director of Audit may, for any financial year of the Authority or a wholly owned subsidiary (specified body), conduct an examination into the economy, efficiency and effectiveness with which the specified body has used the body’s resources in performing the functions of the body.

For the purpose of conducting the examination, the Director of Audit may, at any reasonable time—

The Director of Audit may report to the President of the Legislative Council the results of the examination.

Subsection (1) does not empower the Director of Audit to question the merits of the policy objectives of the specified body.

There is established by this section a board called in English the “Mandatory Provident Fund Schemes Advisory Committee” and in Chinese “強制性公積金計劃諮詢委員會”.

The Advisory Committee is to consist of—

The Chief Executive is to appoint one of the members of the Advisory Committee to be its chairperson and another of its members to be its deputy chairperson.

In appointing persons under subsection (2)(b), the Chief Executive must ensure that included among those persons are—

and that the number of persons appointed to represent the interests of relevant employees is equal to the number of persons appointed to represent the interests of participating employers.

The Chief Executive must consult with the Authority before appointing the persons referred to in subsection (2)(b).

The Authority must publish in the Gazette a notice of the appointment of members of the Advisory Committee.

The appointed members hold office for such periods, and on such terms, as the Chief Executive may specify in the documents by which they are appointed.

The Chief Executive may, at any time, remove an appointed member from office by notice given to the member in writing.

An appointed member may, at any time, resign from membership of the Advisory Committee by notice in writing given to the Chief Executive.

The procedure for convening meetings of the Advisory Committee and for conducting business at those meetings is, subject to this section, to be as determined by that Committee. The chairperson is to convene the first meeting of the Advisory Committee.

A meeting of the Advisory Committee is to be presided over by—

The quorum for a meeting of the Advisory Committee is a majority of its members for the time being.

The functions of the Advisory Committee are—

The Advisory Committee has such ancillary powers as may be necessary to enable it to exercise its functions.

The Advisory Committee may exercise its functions at the request of the Authority or, with the approval of the Financial Secretary, on its own initiative.

There is established for the purposes of this Ordinance a committee called in English the “MPF Industry Schemes Committee” and in Chinese “強制性公積金行業計劃委員會”.

The Industry Schemes Committee is to consist of the following members—

The members (other than the member referred to in subsection (2)(c)) are to be appointed by the Financial Secretary.

The Financial Secretary must consult with the Authority before appointing the members referred to in subsection (2)(a) and (d).

In appointing the persons referred to in subsection (2)(d), the Financial Secretary must ensure that included among those persons are—

and that the number of persons appointed to represent the interests of relevant employees is equal to the number of persons appointed to represent the interests of participating employers.

The Authority must publish in the Gazette a notice of the appointment of members of the Industry Schemes Committee.

The appointed members hold office for such periods, and on such terms, as the Financial Secretary may specify in the documents by which they are appointed.

The Financial Secretary may, at any time, remove an appointed member from office by notice given to the member in writing.

An appointed member may, at any time, resign from membership of the Industry Schemes Committee by notice in writing given to the Financial Secretary.

The procedure for convening meetings of the Industry Schemes Committee and for conducting business at those meetings is, subject to this section, to be as determined by that Committee. The chairperson is to convene the first meeting of the Committee.

The quorum for a meeting of the Industry Schemes Committee is a majority of the members and must include—

A meeting of the Industry Schemes Committee is to be presided over by—

The functions of the Industry Schemes Committee are as follows—

The Industry Schemes Committee has such ancillary powers as may be necessary to enable it to exercise its functions.

The Industry Schemes Committee may exercise its functions at the request of the Authority or, with the approval of the Financial Secretary, on its own initiative.

Every employer of a relevant employee must take all practicable steps to ensure that the employee becomes a member of a registered scheme within the permitted period after the relevant time.

Every employer of a relevant employee must take all practicable steps to ensure that, after the expiration of the permitted period—

Nothing in this section prevents an employer of 2 or more relevant employees from procuring for those employees membership in different registered schemes.

For the purposes of subsection (1)—

An employer who, at the commencement* of this section, is employing a relevant employee must, for each contribution period occurring after that commencement—

An employer who enters into a contract of employment with a relevant employee after the commencement of this section must, for each contribution period occurring after the commencement of the employment—

For the purposes of subsections (1)(a) and (2)(a), the amount to be contributed by an employer for a contribution period is—

For the purposes of subsections (1)(b) and (2)(b), the amount that an employer is required to deduct in respect of a relevant employee for a contribution period is—

For the purposes of subsections (3)(a) and (4)(a), the prescribed percentage is 5 per cent or, if some other percentage is prescribed by the regulations, that other percentage. The regulations may prescribe different percentages for those purposes.

For the purposes of subsections (3)(b) and (4)(b), the Authority must, as the occasion requires, prescribe by order published in the Gazette scales of amounts of contributions by reference to amounts of relevant income of casual employees who are members of industry schemes.

An employer must not, in respect of an employee (not being a casual employee) whose wage period—

An employer must ensure that contributions required to be made in accordance with this section in respect of an employee of the employer are paid to the approved trustee of the registered scheme of which the employee is a member within the period and in the manner prescribed by the regulations.

A relevant employee does not have a claim against the employee’s employer only because that employer has, in accordance with this section, deducted amounts from the employee’s income and has paid those amounts to the approved trustee of a registered scheme. However, nothing in this subsection affects any entitlement that the employee has in respect of those amounts under the rules governing the scheme.

In this section—

This section is subject to sections 9 and 10.

This section applies if—

a relevant employee of an employer is not a member of a registered scheme as required by section 7.

The employer must, in the case referred to in subsection (1)(a), for each contribution period ending on or after that commencement during which the employee is not such a member—

The employer must, in the case referred to in subsection (1)(b), for each contribution period ending after the date the employee becomes a relevant employee during which the employee is not such a member—

For the purposes of subsections (2) and (3), the amount to be contributed by an employer, or to be deducted from an employee’s relevant income, for a contribution period is an amount equal to the prescribed percentage of the employee’s relevant income for that contribution period.

For the purposes of subsection (4), the prescribed percentage is 5 per cent or, if some other percentage is prescribed by the regulations, that other percentage. The regulations may prescribe different percentages for those purposes.

An employer must not, in respect of an employee (not being a casual employee) whose wage period—

An employer must ensure that contributions required to be made in accordance with this section in respect of an employee of the employer are paid to the Authority on or before the contribution day.

This section is subject to sections 9 and 10.

A relevant employee does not have a claim against the employee’s employer for payment of the amounts that the employer has, in accordance with this section, deducted from the employee’s relevant income and paid to the Authority. However, nothing in this subsection affects any entitlement that the employee has in respect of those amounts under the rules governing the scheme to which the Authority has paid those amounts.

For the avoidance of doubt, an employer is not required to make a contribution in respect of a relevant employee under section 7A for a contribution period for which a contribution is payable in respect of the employee to the Authority under this section.

In this section—

If the contribution day as determined under subsection (11) for the purposes of subsection (7) is a day specified in subsection (12A) (excluded day), the contribution day is to be the next following day that is not an excluded day. (Replaced 40 of 2021 s. 13)

The day specified for subsection (12) is—

Subsection (12A)(d) does not apply to a contribution required to be made under this section unless the suspension affects the making of the contribution. (Added 40 of 2021 s. 13)

In computing a period of time for the definition of permitted period in subsection (11), even if the last day of the period is a day specified in subsection (14), the period ends on that day. (Added 1 of 2015 s. 4)

The day specified for subsection (13) is—

When paying contributions to the Authority under section 7AA, an employer must ensure that the contributions are accompanied by a statement, in a form specified or approved by the Authority, for the contribution period or periods to which the contributions relate.

The statement must include the following information—

This section applies if a contribution paid to the Authority in respect of a relevant employee under section 7AA is paid under section 7AC to the approved trustee of a registered scheme.

On receiving the contribution, the approved trustee of the registered scheme must take actions reasonably required by the Authority with regard to the contribution.

This section applies if at any time during the specified period, a relevant employee of an employer was not a member of a registered scheme as required by section 7.

On the commencement date, the amount of contributions that—

becomes due for payment to the Authority.

For the avoidance of doubt, this section applies to an employer even if the relevant employee is no longer employed with the employer on the commencement date.

In this section—

Every self-employed person—

In this section—

For the purposes of subsection (1)(b), the prescribed percentage is 5 per cent or, if some other percentage is prescribed by the regulations, that other percentage. The regulations may prescribe different percentages for those purposes.

For the purposes of this section, the regulations may—

This section is subject to sections 9 and 10.

This section does not apply to a self-employed person who is—

If—

then this Ordinance applies to the employer and the employee as if they had entered into the contract of employment on the day on which the employee reaches 18 years of age and the employment had begun or commenced on that day.

If—

then this Ordinance applies to him as if he had become a self-employed person on the day on which he reaches 18 years of age.

A relevant employee whose relevant income is less than the minimum level of relevant income is not required to contribute to a registered scheme but he may, if he so wishes, by notice in writing to his employer elect to do so.

An employer who receives a notice under subsection (1) must give effect to the election by making deductions and paying contributions in respect of the employee in accordance with section 7A.

A relevant employee may not make an election under subsection (1) in respect of a contribution period during which he is not a member of a registered scheme as required by section 7.

A self-employed person whose relevant income is less than the minimum level of relevant income is not required to contribute to a registered scheme.

A relevant employee whose relevant income is more than the maximum level of relevant income is not required to contribute to a registered scheme in respect of the excess relevant income but he may, if he so wishes, by notice in writing to his employer elect to do so.

An employer who receives a notice under subsection (1) must give effect to the election by making deductions and paying contributions in respect of the employee in accordance with section 7A. (Replaced 1 of 2015 s. 5)

A relevant employee may not make an election under subsection (1) in respect of a contribution period during which he is not a member of a registered scheme as required by section 7.

An employer of a relevant employee whose relevant income is more than the maximum level of relevant income may contribute to a registered scheme in respect of the excess relevant income, but is not obliged to do so. (Added 1 of 2015 s. 5)

A self-employed person whose relevant income is more than the maximum level of relevant income may contribute to a registered scheme in respect of the excess relevant income, but is not required to do so. (Amended 1 of 2015 s. 5)

The Authority must, not less than once in every period of 4 years beginning with the commencement* of this section, conduct a review of the minimum level of relevant income and the maximum level of relevant income to ascertain whether or not there are grounds to amend Schedule 2 or 3 or Schedules 2 and 3.

Without limiting the factors which the Authority may take into account for the purposes of conducting a review mentioned in subsection (1), the Authority must take into account—

The employer of a person may arrange for the person to join and pay contributions to a registered scheme notwithstanding that the person is less than 18 years of age or is of or more than retirement age or is exempted under section 4(3). The employer may pay contributions to the scheme in respect of the person, but is not obliged to do so, whether or not the person pays contributions to the scheme whilst being of that age or is exempted under section 4(3). (Replaced 2 of 2002 s. 9)

A self-employed person may join and pay contributions to a registered scheme notwithstanding that the person is less than 18 years of age or is of or more than retirement age or is exempted under section 4(3). (Replaced 2 of 2002 s. 9)

A relevant employee may pay contributions to a registered scheme exceeding the amount of contribution deductible in respect of the employee under section 7A(1)(b) or (2)(b).

An employer may pay contributions to a registered scheme in respect of a relevant employee employed by the employer exceeding the amount of contribution required by section 7A(1)(a) or (2)(a) to be paid in respect of the employee, but is not obliged to do so, even if the employee continues to pay contributions to the scheme.

A self-employed person may pay contributions to a registered scheme exceeding the amount of contribution payable in respect of the person under section 7C.

A relevant employee or a self-employed person whose relevant income is less than the minimum level of relevant income may nevertheless contribute to a registered scheme. (Amended 18 of 2008 s. 9)

Any contributions—

are voluntary, but are subject to the governing rules of the scheme. (Replaced 2 of 2002 s. 9)

The provisions of this Ordinance (sections 12, 13, 14 and 15(1) to (3) excepted), and the governing rules of the scheme (in so far as those rules are not inconsistent with this Ordinance), apply to accrued benefits derived from voluntary contributions paid to a registered scheme in the same way as they apply to accrued benefits that are derived from mandatory contributions.

The regulations may provide for all or any of the following matters—

Tax deductible voluntary contributions are not voluntary contributions for the purposes of this section. (Added 7 of 2019 s. 12)

A person may open an account in a registered scheme for the purposes of Subdivision 2 of Division 7 of Part 4A of the Inland Revenue Ordinance (Cap. 112) (TVC account) if the person—

The person—

The following provisions apply to accrued benefits in a TVC account in the same way as they apply to accrued benefits that are derived from mandatory contributions—

Subject to section 12A, a contribution in respect of a member of a registered scheme vests in the member as accrued benefits as soon as it is paid to the approved trustee of the scheme.

Subject to subsection (2A) and section 12A, income or profits derived from the investment of the accrued benefits of a member of a registered scheme by or on behalf of the approved trustee of the scheme also (after taking into account any loss arising from any such investment) vest in the member as accrued benefits as soon as they are received by that trustee. (Amended 29 of 2002 s. 6)

The reference to income or profits in subsection (2) does not include interest derived from the placing on deposit of—

Interest referred to in subsection (2A) must be retained by the approved trustee of the registered scheme concerned—

for the benefit of scheme members. (Added 29 of 2002 s. 6)

The total amount of accrued benefits vested in a scheme member from time to time is to be calculated as provided by the rules.

In this section—

If—

the employer may make an application in writing to the approved trustee of the scheme for payment of an amount under subsection (2).

As soon as practicable after receiving an application under subsection (1), the approved trustee of the registered scheme concerned must, on being satisfied as to the employer’s entitlement to a payment under this subsection, pay to the employer from the accrued benefits concerned an amount equal to the amount of the removable benefits. (Amended 4 of 2022 s. 33)

However, if the employer has only paid a part of the severance payment or long service payment (paid Cap. 57 payment), the payment under subsection (2) must be of an amount equal to—

For the purposes of subsection (2A)(a)(ii) and (b)(i)(B) and (ii)(B), a reduction under the benefits reduction provision is a reduction under the provision that applies on the basis that the unpaid Cap. 57 payment had also been paid. (Added 4 of 2022 s. 33)

If—

an application may be made in writing by or in respect of the employee to the approved trustee of the scheme for payment of an amount under subsection (4).

As soon as practicable after receiving an application under subsection (3), the approved trustee of the registered scheme concerned must, on being satisfied as to the recipient’s entitlement to a payment under this subsection, pay to or in respect of the employee from the accrued benefits concerned an amount equal to the amount of the deductible benefits. (Amended 4 of 2022 s. 33)

(Repealed 4 of 2022 s. 33)

If—

this section applies to a severance payment or long service payment, or a contribution, paid by the previous owner as if it had been paid by the new owner or the associated company. This subsection has effect whether or not the previous owner may have terminated the employee’s contract in accordance with section 6 or 7 of the Employment Ordinance (Cap. 57).

Where—

then the new employer may elect, in accordance with the regulations, to have the accrued benefits of the person held in a contribution account in that scheme transferred to an account in a registered scheme nominated by the new employer. (Added 29 of 2002 s. 7)

Where a new employer has made an election under subsection (6A), then, for the purposes of that election—

For the purposes of subsection (6), 2 companies are taken to be associated companies if one is the subsidiary of the other, or both are subsidiaries of a further company.

If an employee falls within section 31ZEA(3) of the Employment Ordinance (Cap. 57), then this section as in force immediately before the date on which the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (4 of 2022) (Amendment Ordinance) comes into operation* continues to have effect in relation to the employee as if the amendments to this section made by the Amendment Ordinance had not been made. (Added 4 of 2022 s. 33)

A member of an employer sponsored scheme who ceases to be an employee of an employer who is participating in the scheme must, in accordance with the regulations, elect to have the member’s accrued benefits transferred to another registered scheme. This subsection does not apply if the member exercises an entitlement to have the member’s accrued benefits paid in accordance with section 15 or regulations made for the purposes of that section.

Subject to subsection (1), and in accordance with the regulations, the accrued benefits of a member of a registered scheme may be transferred—

but only in a circumstance permitted or required by the regulations.

However, if the accrued benefits are held in a TVC account in the registered scheme, those benefits may only be transferred to another TVC account in another registered scheme. (Added 7 of 2019 s. 15)

If the accrued benefits of a member of a registered scheme are to be transferred under this section—

must comply with such requirements with respect to the transfer of those benefits as are prescribed by the regulations for the purposes of this subsection.

If a member of a registered scheme whose accrued benefits are to be transferred under this section—

the employer or employers must comply with such requirements with respect to the transfer of those benefits as are prescribed by the regulations for the purposes of this subsection.

The regulations may—

A scheme member who has attained retirement age shall, in relation to the registered scheme of which he is a scheme member, be entitled as of right to have paid to him by the trustee of that registered scheme the entirety of his accrued benefits in the registered scheme— (Amended 1 of 2015 s. 6)

A scheme member who has not attained retirement age but has attained the age specified in Schedule 7 and certifies to the trustee of the registered scheme of which he is a scheme member by statutory declaration in a form approved by the Authority that he has permanently ceased his employment or self-employment, or is otherwise included in a class of persons specified for that purpose in the regulations, shall be entitled as of right to have paid to him by the trustee of that registered scheme the entirety of his accrued benefits in the registered scheme. (Amended 4 of 1998 s. 2; 1 of 2015 s. 6)

Subject to subsection (2B), a scheme member referred to in subsection (2) is entitled to be paid the entirety of the accrued benefits—

Subsection (2A)(b) does not apply to a scheme member whose entitlement is exercised in the circumstances specified under subsection (3) in the regulations. (Added 1 of 2015 s. 6)

The regulations referred to in subsection (2) may specify the circumstances in which a scheme member’s entitlement under that subsection may be exercised. Those circumstances include (but are not limited to)—

When a member of a registered scheme has died, and any of the member’s accrued benefits are held in the scheme, the approved trustee of the scheme must pay those benefits as a lump sum— (Amended 1 of 2015 s. 6)

(Repealed 1 of 2008 s. 41)

Except as may be prescribed by the regulations, no period of limitation prescribed by the Limitation Ordinance (Cap. 347) applies to proceedings for the recovery of a member’s accrued benefits that have become payable under this section. (Added 4 of 1998 s. 2)

For the purposes of this section, a scheme member has permanently ceased employment or self-employment if the member—

No part of any accrued benefits in a registered scheme in respect of a scheme member shall be taken in execution of a judgment debt or be the subject of any charge, pledge, lien, mortgage, transfer, assignment or alienation by or on behalf of the scheme member and any purported disposition to the contrary is void. (Amended 4 of 1998 s. 2)

To avoid doubt, if a scheme member is adjudicated bankrupt, the right or entitlement of the scheme member to any accrued benefits in a registered scheme is excluded from the property of the scheme member for the purposes of the Bankruptcy Ordinance (Cap. 6). (Added 7 of 2011 s. 4)

Subsections (1) and (1A) apply only to accrued benefits derived from mandatory contributions. (Added 4 of 1998 s. 2. Amended 7 of 2011 s. 4)

The Authority is required to establish a compensation fund for the purpose of compensating members of registered schemes and other persons who have beneficial interests in those schemes for losses of accrued benefits that are attributable to misfeasance or illegal conduct committed by the approved trustees of those schemes or by other persons concerned with the administration of those schemes. (Replaced 4 of 1998 s. 2)

The compensation fund is to be administered by such number of administrators as the Authority may appoint for the purpose but, if there are no such administrators, the Authority must administer the compensation fund. (Replaced 4 of 1998 s. 2)

For the purpose of the compensation fund referred to in subsection (1) and the cost of the administration thereof, the Authority may impose such levies, and at such rates in respect thereof, to be payable by the trustee of a registered scheme out of contributions in relation to the registered scheme in accordance with, and subject to such limits as may be specified in the regulations. (Amended 4 of 1998 s. 2)

The regulations referred to in subsection (3) shall prescribe the rate of levy as a percentage of the value (as determined at a date or dates as may be prescribed in those regulations) of the assets of a registered scheme and may specify whether the payment of the levy is by way of a one off payment or by way of a continuing obligation.

Regulations may be made under section 46 for the purposes of this section. Those regulations may include provisions for—

The Financial Secretary may provide grants or loans out of money from the general revenue that may be provided by the Legislative Council for that purpose to the persons appointed to act as administrators of the compensation fund for the purposes of that fund and on such terms as may be specified by the Authority. (Amended 4 of 1998 s. 2)

Any person (including the trustee of a registered scheme) whose act or omission causes, or has caused, any loss in respect of the accrued benefits of a scheme member and which loss is subsequently compensated from the compensation fund shall be liable to repay such sum (not exceeding the amount of the loss) and interest thereon as the Court may order and that sum and interest (once recovered) shall be paid to the Authority for the purpose of reimbursing the compensation fund. (Amended 4 of 1998 s. 2)

A person who is a member of a registered scheme, or who claims to have a beneficial interest in the accrued benefits of a scheme member in such a scheme, may lodge with the Authority a claim for compensation from the compensation fund on the ground that—

A claim—

A claim that is not made in accordance with subsection (2) is barred unless the Authority otherwise determines.

On receiving a claim made under this section, the Authority must investigate the claim to determine its validity.

The Authority must dismiss a claim if, after investigating the claim, the Authority is satisfied that—

If the Authority dismisses a claim, it must notify the claimant of its decision, together with a statement of the reasons for it.

If the Authority reasonably believes, whether as a result of a claim made under section 17A or otherwise, that—

the Authority must make an application to the Court to have the matter determined by it.

An application under subsection (1) must contain such information, and be accompanied by such documents, as may be prescribed by the regulations for the purposes of this section.

If the application is made as a result of a claim made under section 17A, the application must be accompanied by a copy of the claim.

At the hearing of the application—

are entitled to appear and be heard in the proceedings.

On the hearing of an application made under this section, the Court must—

If the Court makes determinations under subsection (5), it must, by order—

The Court must not make an order for the payment of an amount of compensation directly to a person, unless the person has been paid or is entitled to be paid the relevant accrued benefits as provided by section 15 of the Ordinance or by regulations made for the purposes of that section.

The Rules Committee constituted under section 55 of the High Court Ordinance (Cap. 4) may make rules, not inconsistent with this section, with respect to the making of applications under this section and the hearing and determination of those applications and may amend those rules as and when necessary. (Amended 31 of 1999 s. 3)

If the Court makes an order under section 17B for the award of compensation, the administrators of the compensation fund must pay the compensation to such person as is specified in the order.

The administrators of the compensation fund must pay the compensation within the period, and in the manner, prescribed by the regulations.

If the Court makes an order under section 17B for the award of compensation, the administrators of the compensation fund must add interest to the compensation.

The interest is to be calculated in accordance with the regulations.

If a mandatory contribution becomes due for payment to the Authority under subsection (1) or section 7AE, the person who is liable to pay the contribution is also liable to pay to the Authority as a contribution surcharge an amount determined by multiplying the arrears by the prescribed percentage rate. The prescribed percentage rate is a rate prescribed by the regulations. (Amended 29 of 2002 s. 8; 1 of 2008 s. 60; 18 of 2008 s. 10)

The Authority may, by proceedings brought in a court of competent jurisdiction, recover as a debt due to the Authority— (Amended 40 of 2021 s. 15)

In any proceedings brought under subsection (3), a certificate, purporting to be issued by the Authority, specifying the amount of the arrears, or of any contribution surcharge payable in respect of those arrears, is, in the absence of evidence to the contrary, proof of the matters specified in the certificate. (Amended 1 of 2008 s. 60)

The Authority must pay any arrears or contribution surcharge paid to or recovered by the Authority—

On receiving a payment under subsection (5), the approved trustee of the registered scheme must take actions reasonably required by the Authority with regard to the payment. (Amended 40 of 2021 s. 15)

For the purposes of this section, the regulations may—

For the avoidance of doubt—

is not dependent on the compliance by the approved trustee or any other person with any regulation made for the purposes of this section. (Added 1 of 2008 s. 60)

In this section, a reference to a mandatory contribution includes a part of such a contribution.

An authorized person may, for the purpose of ensuring compliance with the provisions of this Ordinance (except sections 34L, 34ZL and 34ZM), the requirements imposed under this Ordinance, or the conditions imposed under this Ordinance (except section 34X), and for no other purpose do all or any of the following— (Amended 4 of 1998 s. 2; 16 of 2012 s. 9)

If premises are being used as a private dwelling, an authorized person may enter those premises only under the authority of a warrant issued under subsection (3). (Replaced 4 of 1998 s. 2)

A magistrate may, on an application made by or on behalf of an authorized person, issue a warrant authorizing the person to enter premises referred to in subsection (2) if satisfied by information made on oath that there are reasonable grounds for suspecting—

A person may exercise a power conferred by subsection (1) only if the person is in possession of a written authority issued by the Authority and produces that authority to the occupier of the premises sought to be entered, inspected or examined or to any other person in relation to whom it is sought to exercise that power. (Added 4 of 1998 s. 2)

The Authority may, for the purpose of ensuring compliance with the provisions of this Ordinance (except sections 34L, 34ZL and 34ZM), the requirements imposed under this Ordinance, or the conditions imposed under this Ordinance (except section 34X), but for no other purpose, by notice in writing served on an employer, a self-employed person or any other person, require him to produce for inspection within such period as may be specified in the notice any record that is required to be kept under this Ordinance or is otherwise in his possession or under his control. (Amended 16 of 2012 s. 10)

The Authority may make copies of all or any part of the records produced by a person pursuant to a notice served under subsection (1).

The Authority may pay a contribution (referred to in this Part as a special contribution) into an account of a member of a registered scheme.

To effect the payment under subsection (1), the Authority may pay the special contribution to an approved trustee of the scheme, and by a notice in writing direct the approved trustee to—

Only a sub-account referred to in section 78(6)(c), (7)(b) or (8)(a) of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A) may be specified in the notice.

The Authority may specify in the notice—

The approved trustee must—

The Authority may, for the purpose of paying special contributions, by a notice in writing—

Only information or documents that the Authority reasonably considers to be necessary for the purpose of paying special contributions may be specified in the notice and they may include (but are not limited to) the following particulars of a member of a registered scheme or relevant scheme—

The Authority may specify in the notice—

Where—

that person must give the specified information or document to the Authority in the specified manner within the specified period.

In this section—

The Authority may by a notice in writing require an approved trustee of a registered scheme to take any action, specified in the notice, that the Authority reasonably considers to be necessary for the purpose of paying special contributions.

The Authority may specify in the notice—

The action specified in the notice may include (but is not limited to) registering a person specified in the notice as a member of the scheme and opening a personal account for that person. (Amended 11 of 2009 s. 5)

The approved trustee must, after receiving the Authority’s notice, take the specified action in the specified manner within the specified period.

Where—

that person is deemed to have agreed in writing to comply with the governing rules of the scheme.

If the Authority reasonably believes that a special contribution should not have been paid into an account of a member of a registered scheme, the Authority may by a notice in writing specify that account and direct an approved trustee of the scheme to—

If the accrued benefits derived from the special contribution have been transferred to another account in the scheme or to an account in another registered scheme, the Authority may by a notice in writing specify that account and direct an approved trustee of the scheme or that other scheme to—

The Authority may specify in the notice—

The approved trustee must—

A direction under subsection (1) or (2) may only be given in respect of a special contribution within 6 months after the special contribution is paid into an account of a member of a registered scheme.

A special contribution paid under this Part does not extinguish or reduce the liability of any person to pay any other contributions under—

In this section—

If there is any conflict or inconsistency between the provisions of this Part and the provisions of a specified instrument applicable to a registered scheme, the provisions of this Part prevail over the provisions of the instrument to the extent of the conflict or inconsistency.

In this section—

A person may apply to the Authority for approval as a trustee for the purposes of this Ordinance.

A company is not eligible to make an application under this section unless at least 1 of the company’s directors is an independent director. The regulations may prescribe the qualifications of independent directors for the purposes of this subsection.

A natural person is not eligible to make an application under this section if the person—

An application must—

The Authority may, by written notice, require an applicant to provide additional information and documents as is reasonably necessary to enable it to determine the application. If such a requirement is not complied with within a reasonable time specified in the notice, the Authority may reject the application.

The Authority may approve an application only if satisfied that the applicant—

The regulations referred to in subsection (6)(c) may include requirements as to the following matters—

In approving an applicant as an approved trustee, the Authority may impose such conditions with respect to the conduct of the applicant’s business as it considers appropriate.

On approving an applicant as an approved trustee, the Authority must issue the applicant with a certificate of approval and, if the Authority has imposed conditions on the applicant under subsection (8), must specify those conditions in the certificate or in a document accompanying the certificate.

The Authority must not reject an application under this section without giving the applicant an opportunity to make representations (either orally or in writing or both) as to why the application should not be rejected.

If the Authority rejects an application made under this section, it must give written notice of the rejection to the applicant and must include in the notice a statement setting out the reasons for the rejection.

Where the Authority—

then the Authority may, by written notice served on the approved trustee—

The Authority may waive a person’s compliance with a condition imposed under subsection (8) or (12)—

The Authority may suspend the approval of an approved trustee if it reasonably suspects that—

The Authority must not, unless it appears to it that the interests of scheme members would otherwise be detrimentally affected, suspend the approval of an approved trustee without giving the trustee an opportunity to make representations (either orally or in writing or both) as to why the approval should not be suspended.

If the Authority suspends the approval of an approved trustee, it must give written notice of the suspension to the trustee and must include in the notice a statement setting out the reasons for the suspension.

A suspension of the approval of an approved trustee takes effect from the date specified in the notice given under subsection (3) or, if a later date is specified, from that date, irrespective of whether or not the trustee appeals against the suspension under Part 5.

The Authority may revoke the approval of an approved trustee on being satisfied on reasonable grounds that—

The Authority must not revoke the approval of an approved trustee without giving the trustee an opportunity to make representations (either orally or in writing or both) as to why the approval should not be revoked.

If the Authority revokes the approval of an approved trustee, it must give written notice of the revocation to the trustee and must include in the notice a statement setting out the reasons for the revocation.

An approved trustee’s approval is, by operation of this subsection, revoked—

The Authority must establish and maintain a register of trustees approved under section 20. The register may be in such form, and contain such information, as the Authority may determine.

The register is to be kept at the head office of the Authority in Hong Kong.

Members of the public are entitled, without charge, to inspect the register during the ordinary business hours of the Authority.

An application for the registration of a provident fund scheme as an employer sponsored scheme may be made to the Authority only—

An application for the registration of a provident fund scheme as a master trust scheme may be made to the Authority only by an approved trustee that is a company or by a company that has applied for approval under section 20.

If an application under this section is made by 2 or more approved trustees who are natural persons, at least 1 of those persons must be an independent trustee. The regulations may prescribe the qualifications of independent trustees for the purposes of this subsection.

An application must—

The Authority may, by written notice, require an applicant to provide such additional information and documents as are reasonably necessary to enable it to determine the application. If such a requirement is not complied with within a reasonable time specified in the notice, the Authority may reject the application.

As soon as practicable after receiving an application for the registration of a provident fund scheme, the Authority must consider the application.

The Authority may register a scheme only if satisfied that the scheme—

The Authority may, as a condition of registering a provident fund scheme under this section, require the applicant to give to the Authority an undertaking with respect to the administration of the scheme by deed, or by a document of like effect acceptable to the Authority, including—

Without prejudice to the operation of subsection (8), on registering a provident fund scheme, the Authority may impose such conditions with respect to the administration or marketing of the scheme as it considers appropriate. (Added 2 of 2002 s. 11)

The Authority must not reject an application under this section without giving the applicant an opportunity to make representations (either orally or in writing or both) as to why the application should not be rejected.

If the Authority rejects an application made under this section, it must give written notice of the rejection to the applicant and must include in the notice a statement setting out the reasons for the rejection.

On registering a provident fund scheme, the Authority must issue to the approved trustee of the scheme a certificate of registration and, if the Authority has imposed conditions under subsection (8A) with respect to the administration or marketing of the scheme, must specify those conditions in the certificate or in a document accompanying the certificate. The certificate must specify whether the scheme is an employer sponsored scheme or a master trust scheme. (Amended 2 of 2002 s. 11)

Where the Authority—

then the Authority may, by written notice served on the approved trustee—

The Authority may waive a person’s compliance with a condition imposed under subsection (8A) or (12)—

The Authority shall not impose under this section any conditions with respect to the marketing of a registered scheme, or amend any conditions imposed under this section with respect to the marketing of the scheme, unless the imposition or amendment, as the case may be, falls within the ambit of the guidelines. (Added 2 of 2002 s. 11)

The Authority may invite approved trustees that are companies to lodge with it applications to register a provident fund scheme as an industry scheme.

Such a scheme may be for the persons engaged (whether as employees or as self-employed persons) in a particular industry or a particular class of industries or in 2 or more industries or classes of industries.

Despite subsection (2), any person may also apply for the membership of such a scheme only for the purpose of maintaining a personal account within the scheme. (Added 11 of 2009 s. 9)

The invitations sent or given to the approved trustees must be in writing and be identical in all material respects and must specify—

An application by an approved trustee in response to an invitation sent or delivered under subsection (1) must—

The Authority may, by written notice, require an applicant to provide such additional information and documents as are reasonably necessary to enable it to determine the application. If such a requirement is not complied with within a reasonable time specified in the notice, the Authority may reject the application.

As soon as practicable after the date specified in the invitations sent or delivered under subsection (1), the Authority must—

The Authority may register a scheme as an industry scheme only if satisfied that the scheme—

The Authority may, as a condition of registering a provident fund scheme as an industry scheme, require the applicant to give to the Authority an undertaking with respect to the administration of the scheme by deed, or by a document of like effect acceptable to the Authority, including an undertaking not to refuse—

Without prejudice to the operation of subsection (8), on registering a provident fund scheme as an industry scheme, the Authority may impose such conditions with respect to the administration or marketing of the scheme as it considers appropriate. (Added 2 of 2002 s. 12)

An applicant is entitled to make representations (either orally or in writing or both) as to why the Authority should select the scheme specified in the applicant’s application from among the applicants.

As soon as practicable after selecting the successful applicant, the Authority must notify that applicant of the selection and give written notices to the other applicants that their applications have been rejected.

On registering a provident fund scheme as an industry scheme, the Authority must—

The certificate must specify that the scheme is an industry scheme.

Where the Authority—

then the Authority may, by written notice served on the approved trustee—

The Authority may waive a person’s compliance with a condition imposed under subsection (8A) or (12)—

The Authority shall not impose under this section any conditions with respect to the marketing of a registered scheme, or amend any conditions imposed under this section with respect to the marketing of the scheme, unless the imposition or amendment, as the case may be, falls within the ambit of the guidelines. (Added 2 of 2002 s. 12)

The Authority must establish and maintain a register of schemes registered under sections 21 and 21A. The register may be in such form, and contain such information, as the Authority may determine.

The register is to be kept at the head office of the Authority in Hong Kong.

Members of the public are entitled, without charge, to inspect the register during the ordinary business hours of the Authority.

An approved trustee of a registered scheme must, before making a constituent fund available in the scheme for investment by scheme members, ensure that the fund has been approved by the Authority.

An approved trustee who, without reasonable excuse, fails to comply with subsection (1) commits an offence and is liable—

The Authority may on application made by an approved trustee of a registered scheme—

An application for approval or cancellation must—

An application for approval must include a statement of investment policy that sets out—

The Authority may, by written notice, require an applicant for approval or cancellation to provide additional information and documents that are reasonably necessary to enable it to determine the application.

If the requirement referred to in subsection (4) is not complied with within a reasonable time specified in the notice, the Authority may reject the application.

Without limiting any other ground on which the Authority may refuse to approve any constituent fund under subsection (1), the Authority may refuse to approve a constituent fund if it is not satisfied that the fund is in scheme members’ interests.

The Authority must not reject an application for approval or cancellation without giving the applicant an opportunity to make representations (either orally or in writing or both) as to why the application should not be rejected.

If the Authority rejects an application for approval or cancellation, it must—

The approval granted in respect of each constituent fund of a registered scheme is taken to be cancelled on the cancellation of the registration of the scheme.

Regulations may be made under section 46 as to the requirements and standards that must be complied with in relation to—

Those regulations may include requirements or standards as to the following matters—

The approved trustee of a registered scheme must lodge with the Authority an annual statement not later than the date prescribed by the regulations for the purposes of this section.

The statement must include or be accompanied by the following—

The approved trustee of a registered scheme must pay to the Authority an annual registration fee in respect of the scheme not later than the date on which the annual statement relating to the scheme is required to be lodged with the Authority under section 22A.

The annual registration fee is to be an amount prescribed by the regulations and may be determined by reference to the current value of the assets of a registered scheme. However, the amount must not be fixed at a level that exceeds that which will enable the Authority to recover the costs incurred, or likely to be incurred, in exercising and performing its functions with respect to registered schemes.

The amounts likely to be received by the Authority from other fees payable to it under this Ordinance are to be taken into account when fixing the level of the annual registration fee.

The amount at which the annual registration fee may be fixed is not to be affected by the fact that, in exercising or performing a function for or in relation to a particular person, the fee payable to the Authority by the person may exceed the actual cost to the Authority of exercising or performing the function.

The Authority may, by proceedings brought in a court of competent jurisdiction, recover from the approved trustee of a registered scheme as a debt an annual registration fee that is not paid on time.

The Authority may establish, or arrange for the establishment of, a provident fund scheme, to be known as the “Residual Provident Fund Scheme”, for the purpose specified in subsection (2). On establishing, or making arrangements for the establishment of, the Residual Provident Fund Scheme, the Authority must appoint a company that is an approved trustee to administer the scheme. (Replaced 4 of 1998 s. 2)

The principal purpose of the Residual Provident Fund Scheme established under subsection (1) is to provide, as a last resort only, membership of that Scheme to a relevant employee of an employer, or to a self-employed person where that employer or self-employed person, as the case may be—

in respect of that employer or self-employed person, as the case may be, the Authority has not succeeded in obtaining access to a registered scheme which would otherwise enable compliance with the requirements referred to in paragraph (a).

If, in the opinion of the Authority, it is desirable to do so, the Authority may authorize the Residual Provident Fund Scheme to have the following additional purposes—

The Authority may make rules under section 47 for the purpose of this section for the efficient and effectual operation of the Residual Provident Fund Scheme.

An approved trustee shall comply with such duties in relation to a registered scheme as may be imposed by the regulations.

The duties that may be imposed by the regulations include (but are not limited to) the following—

An approved trustee of a registered scheme must invest the accrued benefits of a scheme member according to the member’s selection as permitted under the governing rules. (Added 9 of 2016 s. 5)

An approved trustee has the same duties as those imposed, the same powers as those conferred, on trustees by law, except in so far as they are expressly or impliedly modified by, or are inconsistent with, this Ordinance. (Replaced 4 of 1998 s. 2)

Whenever the approved trustee of a registered scheme is required or empowered by or under this Ordinance, or by the governing rules of the scheme, to delegate a duty of the trustee in relation to the scheme to a service provider, the delegation does not absolve the trustee—

The Authority may, after consultation with the Financial Secretary, make and publish in the Gazette or otherwise guidelines, for the guidance of the trustees of registered schemes, specifying which investment practices (forbidden investment practices) must not be engaged in by approved trustees of registered schemes because, in the opinion of the Authority, the forbidden investment practices may or are likely to prejudice the financial soundness of those registered schemes. (Amended 4 of 1998 s. 2)

For the purposes of subsection (1), the guidelines made under that subsection may be expressed to apply to all registered schemes or to a class of registered schemes specified therein.

(Repealed 4 of 1998 s. 2)

The approved trustee of a registered scheme may invest the accrued benefits of scheme members in restricted investments—

If at any time the Authority reasonably believes that circumstances exist or have existed that may prejudice the accrued benefits of a member of a registered scheme, it may, by written notice served on the approved trustee of the scheme, require that trustee—

If at any time the Authority reasonably believes that an approved trustee of a registered scheme has failed to comply with section 34DB(1)(a), (b), (c) or (d), 34DD(1) or (4), 34DI(1) or (2), 34DJ(2), (3), (4) or (5) or 34DK(2), the Authority may, by written notice served on the trustee, require the trustee— (Amended 40 of 2021 s. 21)

The Authority may publish the report or supply the report to the scheme member referred to in subsection (1) or (1A).

Any approved trustee who without reasonable excuse fails to comply with a notice in writing referred to in subsection (1) or (1A) commits an offence and is liable on summary conviction to a fine at level 2.

An authorized person may, at any reasonable time during ordinary business hours, enter premises at which the person reasonably believes that—

for the purpose of ascertaining whether or not the provisions of this Ordinance (except sections 34L, 34ZL and 34ZM), the requirements imposed under this Ordinance, or the conditions imposed under this Ordinance (except section 34X), are being complied with. (Amended 16 of 2012 s. 11)

Subsection (1) does not authorize an authorized person to enter premises that are being used as a private dwelling.

An authorized person may enter premises under this section without giving notice and without the consent of the occupier—

In all other circumstances, an authorized person must give the occupier of the premises reasonable notice of the intention to enter the premises.

An authorized person who enters premises under this section may do any of the following—

A person may exercise a power conferred by this section only if the person—

The Authority may, by notice in writing served on an approved trustee of a registered scheme, require the approved trustee to give to the Authority within such period as may be specified in the notice any information or document relating to the scheme that is specified in the notice, but only if the information or document is in the possession, or under the control, of that trustee.

Any approved trustee who, without reasonable excuse, fails to comply with a notice in writing referred to in subsection (1) commits an offence and is liable on summary conviction to a fine at level 6.

This section applies if the Authority reasonably believes that— (Amended 40 of 2021 s. 22)

(Repealed 40 of 2021 s. 22)

The Authority may appoint one or more competent persons to be inspectors to conduct an investigation under this section.

For the purpose of conducting an investigation, an inspector may do any of the following—

If premises are being used as private dwelling, an inspector may enter and search those premises only under the authority of a warrant issued under subsection (3B). (Added 4 of 1998 s. 2)

A magistrate may, on an application made by or on behalf of an inspector, issue a warrant authorizing the inspector to enter and search premises referred to in subsection (3A) if satisfied by information made on oath that there are reasonable grounds for suspecting—

An inspector who enters premises under the authority of a warrant issued under this section may take possession of any records that the inspector reasonably believes relate to the affairs of the trustee or the scheme. (Added 4 of 1998 s. 2)

If an inspector is satisfied that any person has, without reasonable excuse, failed to comply with any reasonable request in respect of his investigation or any requirement made under this Ordinance in respect of that investigation, the inspector may, by complaint made to the Court, certify the failure of that person to so comply.

On the receipt of a certificate made under subsection (4), the Court may inquire into the case and, after hearing any statement that may be offered by way of an explanation by the person who is the subject of the complaint, may accept that explanation or alternatively punish that person in the same way as a person who is found guilty of a contempt of court.

A person is not excused from answering a question that may be put to him by an inspector under this section on the ground that the answer may tend to incriminate him but, if the person claims, before answering the question, that the answer may tend to incriminate him, neither the question put to him by the inspector nor the answer of the person is admissible in evidence against the person in criminal proceedings other than in proceedings relating to a charge of perjury in respect of the answer.

Any person who fails to produce any document or record required to be produced under subsection (3) with the intention of obstructing, delaying or otherwise frustrating the commencement, progress or completion of an investigation under this section commits an offence and is liable on summary conviction to a fine at level 6 and to imprisonment for 1 year.

On the completion of an investigation by an inspector under this section, the inspector shall prepare a report setting out his findings concerning the circumstances or other matters investigated by him and any other relevant matters arising out of the investigation that the inspector reasonably believes should be included in the report and shall submit that report to the Authority.

On receiving a report of an investigation conducted under this section, the Authority must provide a copy of the report to the approved trustee of the registered scheme concerned. The Authority may also do either or both of the following—

Nothing in this section requires disclosure to an inspector appointed under subsection (2)—

The Authority may, by written notice served on an approved trustee of a registered scheme, suspend the trustee’s administration of the scheme if the Authority reasonably believes—

A notice under subsection (1) must specify—

A suspension of an approved trustee’s administration of a registered scheme takes effect from the date specified in the notice served under subsection (1) or, if a later date is specified, from that date, irrespective of whether or not the trustee appeals against the suspension under Part 5.

The Authority may, if it reasonably believes that it is necessary to do so, extend the period of an approved trustee’s suspension by serving a further notice on the approved trustee concerned.

As soon as practicable after suspending an approved trustee’s administration of a registered scheme, the Authority must hold an inquiry to determine whether or not the trustee’s administration of the scheme should be terminated. The inquiry is to be held in accordance with Schedule 5A.

The Authority must terminate the approved trustee’s administration of a registered scheme if, at the conclusion of an inquiry held under this section, the Authority is satisfied—

An approved trustee’s administration of a registered scheme is also terminated if the trustee’s approval is revoked under section 20B.

An approved trustee’s administration of a registered scheme is also suspended if the trustee’s approval is suspended under section 20A.

An approved trustee’s administration of a registered scheme may also be terminated by the resignation of the trustee but only with the prior written approval of the Authority. That approval may be given only when the Authority is satisfied that adequate arrangements have been made for another approved trustee to assume responsibility for the administration of the scheme and for the legal interest in the scheme assets to be transferred to that other trustee.

If—

the Authority must, as soon as practicable after the suspension or termination of administration, appoint an administrator to replace the trustee whose administration of the scheme has been suspended or terminated until the suspension ends or the vacancy resulting from the termination is filled.

A person appointed under subsection (1) must, as far as possible, be an approved trustee.

However, if the Authority is unable to find an approved trustee who is willing to act as an administrator of the registered scheme concerned, it may appoint as administrator a person who is not an approved trustee.

If—

the Authority must, as soon as practicable after the suspension or termination of administration, appoint an administrator to administer the scheme to replace the trustee whose administration of the scheme has been suspended or terminated until the suspension ends or the vacancy resulting from the termination is filled.

A person appointed under subsection (4) must, as far as possible, be an approved trustee that is a company.

However, if the Authority is unable to find an approved trustee that is a company who is willing to act as an administrator of the registered scheme concerned, it may appoint as administrator a person who is not an approved trustee or an approved trustee that is not a company.

An appointment under this section is to be on such terms and conditions as are specified in the appointment, including the fees that are to be payable to the approved trustee. If a person appointed under this section is not an approved trustee, the terms and conditions are, as nearly as practicable, to be those applicable to such a trustee.

The Authority may terminate the appointment of an administrator after giving reasonable notice to the administrator and may—

in accordance with this section appoint another administrator to administer the scheme.

The administrator of a registered scheme may resign by giving to the Authority not less than 30 days’ written notice of the resignation.

An administrator of a registered scheme may deal with the scheme assets as if the legal interest in those assets was vested in the administrator or, where the administrator consists of 2 or more persons, was vested in those persons jointly.

If—

the Authority must, as soon as practicable after the termination, take all reasonable steps to appoint another approved trustee to replace the trustee whose administration of the scheme was terminated.

A person appointed under subsection (1) must be an approved trustee.

If—

the Authority must take all reasonable steps to appoint another approved trustee to replace the trustee whose administration of the scheme was terminated.

A person appointed under subsection (3) must be an approved trustee that is a company.

An appointment under this section is to be on such terms and conditions as are specified in the appointment, including the fees that are to be payable to the approved trustee.

The legal interest in the assets of a registered scheme in respect of which an approved trustee is appointed under this section becomes vested in the trustee on that appointment.

An employer sponsored scheme may be wound up voluntarily in such circumstances as are prescribed by the regulations, but only with the written consent of the Authority. That consent may be given only if the Authority is satisfied that—

The approved trustee of an employer sponsored scheme, or any other person of a class prescribed by the regulations for the purposes of this subsection, may make an application to the Authority to give its consent to the voluntary winding up of the scheme.

An application must—

The Authority may, by written notice, require an applicant to provide such additional information and documents as are reasonably necessary to enable it to determine the application. If such a requirement is not complied with within a reasonable time specified in the notice, the Authority may reject the application.

The regulations may prescribe conditions that the Authority may or must impose as a condition of giving its consent to the voluntary winding up of the scheme, including requirements that must be complied with by the approved trustee of the scheme or by the participating employer concerned.

The Authority must not refuse to give its consent to the voluntary winding up of the scheme without giving the applicant an opportunity to make representations (either orally or in writing or both) as to why the Authority should consent to the winding up.

If the Authority refuses to consent to the voluntary winding up of the scheme, it must give written notice of the refusal to the applicants and must include in the notice a statement setting out the reasons for the refusal.

On consenting to the voluntary winding up of an employer sponsored scheme, the Authority may appoint a liquidator to wind up the affairs of the scheme. More than one liquidator may be appointed under this subsection if the Authority thinks it necessary.

A liquidator appointed under subsection (8) must have such qualifications as are specified in the regulations.

The appointment of a liquidator under subsection (8) is to be on such terms and conditions as are specified in the appointment, including the fees that are to be payable to the liquidator.

The voluntary winding up of an employer sponsored scheme is to be conducted in accordance with regulations made under section 46 for the purposes of this section.

On being satisfied that the winding up of a registered scheme has been completed in accordance with this section, the Authority must cancel the registration of the scheme.

Except as provided by section 34 or 34D, a registered scheme may be wound up only by the Court on application made by the Authority. (Amended 2 of 2002 s. 13)

In winding up a registered scheme, the Court must satisfy itself—

The Court may appoint a liquidator to conduct the winding up of a registered scheme and, subject to the regulations, may specify the duties to be performed by the liquidator in relation to the conduct of the winding up. More than one liquidator may be appointed under this subsection if the Court thinks it necessary.

A liquidator appointed under subsection (3) must have such qualifications as are specified in the regulations.

The appointment of a liquidator under subsection (3) is to be on such terms and conditions as are specified in the appointment, including the fees that are to be payable to the liquidator.

The winding up of a registered scheme under this section is to be conducted in accordance with winding up rules made in accordance with subsection (7). Those rules may include provision for the payment of fees with respect to the proceedings relating the winding up of such a scheme and may specify by whom and to whom those fees are to be paid and the manner in which they are to be paid.

The winding up rules referred to in subsection (6) are to be made by the Rules Committee constituted under section 55 of the High Court Ordinance (Cap. 4) and may be amended by that Committee as and when necessary. (Amended 31 of 1999 s. 3)

Winding up rules made for the purposes of this section are to be judicially noticed.

On being satisfied that the winding up of a registered scheme has been completed in accordance with this section, the Authority must cancel the registration of the scheme.

The approved trustee of a registered scheme or the approved trustees of 2 or more registered schemes may apply to the Authority to consent to the restructuring of the scheme or schemes, as the case may be. (Replaced 29 of 2002 s. 9. Amended 1 of 2008 s. 46)

(Repealed 29 of 2002 s. 9)

An application must—

The Authority may, by written notice, require an applicant to provide such additional information and documents as are reasonably necessary to enable it to determine the application. If such a requirement is not complied with within a reasonable time specified in the notice, the Authority may reject the application.

As soon as practicable after receiving an application to consent to the restructuring of a registered scheme or registered schemes, the Authority must consider the application. The Authority may consent to the restructuring only if satisfied—

The Authority must not reject an application under this section without giving the applicant or applicants, as the case may be, an opportunity to make representations (either orally or in writing or both) as to why the Authority should consent to the restructuring of the scheme or schemes, as the case may be. (Replaced 29 of 2002 s. 9)

If the Authority rejects an application made under this section, it must give written notice of the rejection to the applicants and must include in the notice a statement setting out the reasons for the rejection.

On registering a new scheme derived from the restructuring of an existing scheme or schemes, the Authority must issue to the approved trustee of the new scheme a certificate of registration and cancel the registration of the existing scheme or such of the existing schemes as is appropriate as a result of the restructuring. The certificate must specify that the new scheme is an employer sponsored scheme, a master trust scheme, or an industry scheme, as the case requires. (Replaced 29 of 2002 s. 9)

The restructuring of a registered scheme or registered schemes that is carried out with the consent of the Authority under this section is, notwithstanding any provision of this Ordinance or the governing rules of the scheme or schemes, binding on the approved trustee or trustees of the scheme or schemes, all participating employers and scheme members in the scheme or schemes and all other parties bound by the governing rules of the scheme or schemes. (Added 1 of 2008 s. 46)

The Authority’s consent to the restructuring of a registered scheme or registered schemes does not affect the right of a participating employer or scheme member in the scheme or any of the schemes to elect to have the accrued benefits of the member transferred under Part 12 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A). (Added 1 of 2008 s. 46)

In this section, a reference to a restructuring of a registered scheme or registered schemes is a reference to any arrangement under which the members of the scheme or schemes, or the accrued benefits of the members of the scheme or schemes, are transferred to another registered scheme or other registered schemes. (Added 1 of 2008 s. 46)

On being satisfied on the application of the approved trustee of a registered scheme that the scheme has no scheme members, no scheme assets and no liabilities (including obligations to participating employers and scheme members), the Authority must cancel the registration of the scheme.

An application must—

The Authority may, by written notice, require an applicant to provide such additional information and documents as are reasonably necessary to enable it to determine the application. If such a requirement is not complied with within a reasonable time specified in the notice, the Authority may reject the application.