Cap. 485

An Ordinance to provide for the establishment of non-governmental mandatory provident fund schemes for the purpose of funding benefits on retirement, to provide for contributions to such schemes, to provide for the registration of such schemes, to provide for a regulatory regime in respect thereof, to provide for the creation of a Mandatory Provident Fund Schemes Authority to oversee the administration and management of registered schemes, to exempt certain classes of persons from contributing to registered schemes, to provide for the approval of persons (other than public officers or statutory corporations) as trustees of registered schemes, to provide for the control and regulation of approved trustees, to regulate sales and marketing activities, and the giving of advice, in relation to registered schemes, and to make consequential amendments to other Ordinances including pension related Ordinances, and for connected purposes.(Amended 16 of 2012 s. 3)(Format changes—E.R. 4 of 2019) [24 July 1998] L.N. 292 & 293 of 1998 (Enacting provision omitted—E.R. 1 of 2013) Part 1 Preliminary (Format changes—E.R. 1 of 2013) 1. Short title (Amended E.R. 4 of 2019)(1) This Ordinance may be cited as the Mandatory Provident Fund Schemes Ordinance.(2) (Omitted as spent—E.R. 1 of 2013) 2. Interpretation (1) In this Ordinance, unless the context otherwise requires— (Amended 4 of 1998 s. 2)2021 Amendment Ordinance (《2021年修訂條例》) means the Mandatory Provident Fund Schemes (Amendment) Ordinance 2021 (40 of 2021); (Added 40 of 2021 s. 3)accrued benefits (累算權益), in relation to a registered scheme, means the amount of each scheme member’s beneficial interest in the registered scheme at any time, including sums derived from the contributions made by or in respect of that scheme member, together with the income or profits arising from any investments of the contributions, but taking into account any losses in respect of the investments and any amounts paid in respect of the scheme member; (Amended 2 of 2002 s. 2; 1 of 2015 s. 3)administer (管理) includes manage and maintain; (Added 4 of 1998 s. 2)Advisory Committee (諮詢委員會) means the Mandatory Provident Fund Schemes Advisory Committee established by section 6R; (Added 4 of 1998 s. 2)Appeal Board (上訴委員會) means the Mandatory Provident Fund Schemes Appeal Board constituted under section 35;apprentice (學徒) has the same meaning as in the Apprenticeship Ordinance (Cap. 47);approved trustee (核准受託人) means a company or a natural person approved by the Authority as a trustee in accordance with section 20 and, when used in relation to a registered scheme that is administered by 2 or more approved trustees, means (except in sections 33 to 33B) the trustees jointly and severally; (Replaced 4 of 1998 s. 2)arrears (欠款) means a mandatory contribution that is due for payment to the Authority under section 7AE or 18; (Added 1 of 2008 s. 59. Amended 18 of 2008 s. 4)associate (有聯繫者), in relation to a natural person referred to in paragraph (d) of the definition of controller or a company or other body corporate, means a person specified in Schedule 8; (Amended 18 of 2008 s. 26)associated company (有聯繫公司) has, except in section 12A, the meaning given by Part 3 of Schedule 8; (Added 4 of 1998 s. 2)Authority (管理局) means the Mandatory Provident Fund Schemes Authority established by section 6; (Replaced 4 of 1998 s. 2)authorized financial institution (認可財務機構) means an authorized institution as defined by section 2(1) of the Banking Ordinance (Cap. 155); (Added 16 of 2012 s. 4)authorized person (獲授權人) means a person appointed or authorized by the Authority in writing to exercise or perform functions, or specified functions, under or for the purposes of this Ordinance; (Added 4 of 1998 s. 2)Cap. 1 (《第1章》) means the Interpretation and General Clauses Ordinance (Cap. 1); (Added 40 of 2021 s. 3)casual employee (臨時僱員) means a relevant employee who is declared by an order made under subsection (2) to be a casual employee for the purposes of this Ordinance; (Added 4 of 1998 s. 2)chief executive officer (行政總裁), in relation to a company, means the person who, either alone or with others, is immediately responsible to the directors of the company for the conduct of the whole business of the company, and includes a person holding office as managing director of the company; (Added 4 of 1998 s. 2) close relative (近親), in relation to a natural person, means— (a) a spouse, former spouse, parent, step-parent, child, step-child, grand parent, grand child, brother, half-brother, sister or half-sister of the person; or (b) a parent, step-parent, child, step-child, grand parent, grand child, brother, half-brother, sister or half-sister of the spouse or a former spouse of the person; (Added 4 of 1998 s. 2) company (公司)— (a) means—(i) a company within the meaning of the Companies Ordinance (Cap. 622); or (Amended 28 of 2012 ss. 912 & 920)(ii) a non-Hong Kong company; (Amended 30 of 2004 s. 3) (b) includes a corporation in the case of—(i) the definitions of associated company, chief executive officer, controller, officer, share and voting share; and(ii) the provisions of section 44(1), section 7(2) of Part 2 of Schedule 1A and Schedule 8; (Replaced 2 of 2002 s. 2) compensation fund (補償基金) means the compensation fund established in accordance with section 17; (Added 4 of 1998 s. 2)conditions (條件) means reasonable conditions; (Added 2 of 2002 s. 2)constituent fund (成分基金), in relation to a registered scheme, means the fund that constitutes the scheme, or a fund that forms part of the scheme; (Added 1 of 2015 s. 3)contract of employment (僱傭合約) has the same meaning as in the Employment Ordinance (Cap. 57), and employment (僱用、受僱) shall be construed accordingly;contribution account (供款帳戶) has the same meaning as in section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A); (Added 29 of 2002 s. 2) controller (控權人), in relation to a company, means any of the following persons— (a) the directors of the company; (b) a person in accordance with whose instructions those directors are accustomed to act; (c) the chief executive officer of the company; (d) a natural person who, alone or together with an associate, a close relative or an employee of the person, or a company of which the person is a director, or through a nominee, controls at least 15 per cent of the voting shares of the company; (Amended 18 of 2008 s. 26) (e) another company that, alone or with any associate, or any employee of an associate, of that other company, or through a nominee, controls at least 15 per cent of the voting shares of the first-mentioned company; (Added 4 of 1998 s. 2) corporation (法團)—(a) means a body corporate that is incorporated in a place outside Hong Kong; but(b) does not include—(i) a non-Hong Kong company; or(ii) a re-domiciled company; (Replaced 14 of 2025 s. 230)Court means the Court of First Instance; (Added 4 of 1998 s. 2)default investment strategy (預設投資策略), in relation to a registered scheme, means the default investment strategy provided in the governing rules of the scheme under section 34DB(1)(a); (Added 9 of 2016 s. 3)electronic MPF system (電子強積金系統) means an electronic system designated under section 19I(1); (Added 40 of 2021 s. 3)electronic system (電子系統) means an information system as defined by section 2(1) of the Electronic Transactions Ordinance (Cap. 553); (Added 16 of 2012 s. 4)employee (僱員) has the same meaning as in the Employment Ordinance (Cap. 57), other than a person excluded by section 4(2) of that Ordinance, and includes an apprentice and a former employee;employer (僱主) means any person who has entered into a contract of employment to employ another person as his employee; employer sponsored scheme (僱主營辦計劃) means a registered scheme membership of which is— (a) in the case of an employer who is not a company, open only to the employees of that employer; or (b) in the case of an employer that is a company, open only to the employees of that company or an associated company; (Replaced 4 of 1998 s. 2. Amended 2 of 2002 s. 2) exempt person (獲豁免人士) means a person or class of persons construed in accordance with section 4;functions (職能) includes powers, authorities and duties; (Added 4 of 1998 s. 2)governing rules (管限規則), in relation to a registered scheme, means those rules and provisions contained in a trust instrument or other document relating thereto or that trust instrument and that other document taken together, and governing the establishment and operation of the registered scheme;industry (行業) includes a trade, profession, occupation or calling; (Added 4 of 1998 s. 2)industry scheme (行業計劃) means a provident fund scheme registered under section 21A; (Added 4 of 1998 s. 2)Industry Schemes Committee (行業計劃委員會) means the MPF Industry Schemes Committee established by section 6U; (Added 4 of 1998 s. 2) Managing Director (行政總監), in relation to the Authority, means the Managing Director appointed under section 6B, and includes any person appointed to act as Managing Director— (a) when that director is absent from Hong Kong or absent through illness or any other reason; or (b) when the office of Managing Director is vacant; (Added 4 of 1998 s. 2) mandatory contribution (強制性供款) means— (a) an amount that is required to be paid as a contribution to a registered scheme under section 7A or 7C; (Amended 18 of 2008 s. 4) (aa) an amount that is required to be paid as a contribution to the Authority under section 7AA; (Added 18 of 2008 s. 4) (ab) an amount that is payable to the Authority under section 7AE; or (Added 18 of 2008 s. 4) (b) minimum MPF benefits, to which section 5(1) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B) applies, that have been transferred to a registered scheme; (Replaced 2 of 2002 s. 2) master trust scheme (集成信託計劃) means a registered scheme membership of which is open to— (a) the employees of more than one employer; and (b) self-employed persons and former self-employed persons; and (Amended 18 of 2008 s. 4) (c) (Repealed 18 of 2008 s. 4) (d) persons who, having benefits in an ORSO exempted scheme, or an ORSO registered scheme, within the meaning of section 2(1) of the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B), wish to have those benefits transferred to the first-mentioned scheme; and (Added 2 of 2002 s. 2. Amended 7 of 2019 s. 10) (e) persons who—(i) are existing members of an occupational retirement scheme;(ii) are exempted from the provisions of this Ordinance under section 5; and(iii) wish to pay tax deductible voluntary contributions into a TVC account in the registered scheme, (Added 7 of 2019 s. 10) but does not include an industry scheme; (Replaced 4 of 1998 s. 2. Amended 2 of 2002 s. 2) maximum level of relevant income (最高有關入息水平) means the level of relevant income specified in Schedule 3; (Replaced 4 of 1998 s. 2. Amended 18 of 2008 s. 4)minimum level of relevant income (最低有關入息水平) means the level of relevant income specified in Schedule 2; (Amended 4 of 1998 s. 2; 18 of 2008 s. 4)minimum MPF benefits (最低強制性公積金利益) has the same meaning as in section 1(1) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B); (Added 2 of 2002 s. 2)non-Hong Kong company (非香港公司) means a non-Hong Kong company as defined by section 2(1) of the Companies Ordinance (Cap. 622); (Added 4 of 1998 s. 2. Amended 30 of 2004 s. 3; 28 of 2012 ss. 912 & 920)occupational retirement scheme (職業退休計劃) has the same meaning as in the Occupational Retirement Schemes Ordinance (Cap. 426); (Added 4 of 1998 s. 2)offering document (要約文件) has the meaning given by section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A); (Added 40 of 2021 s. 3) officer (高級人員), in relation to a company, means— (a) a director of the company; or (b) the chief executive officer of the company; (Added 4 of 1998 s. 2) operating rules (運作守則) means the rules referred to in section 19K(2)(a); (Added 40 of 2021 s. 3)participating employer (參與僱主) means the employer of employees who are members or prospective members of a registered scheme; (Added 4 of 1998 s. 2. Amended 2 of 2002 s. 2)personal account (個人帳戶) has the same meaning as in section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A); (Added 11 of 2009 s. 3) personal representative (遺產代理人) means— (a) a personal representative within the meaning of section 2 of the Probate and Administration Ordinance (Cap. 10); or (b) where the Official Administrator gets in and administers an estate in a summary manner under section 15 of that Ordinance, the Official Administrator; (Added 1 of 2008 s. 40) practicable (切實可行) means reasonably practicable; (Added 29 of 2002 s. 2)pre-existing scheme (既有計劃) has the meaning given by section 19M(4); (Added 40 of 2021 s. 3)premises (處所) includes any place and a part of premises or a place; (Added 4 of 1998 s. 2) provident fund scheme (公積金計劃) means a scheme governed by a trust— (a) the terms of which are set out in one or more documents; and (Replaced 4 of 1998 s. 2) (b) that—(i) provides for the payment of pecuniary benefits to the members of the scheme when they reach the retirement age, or any other prescribed event occurs in relation to them; or(ii) in the case of members who die before reaching that age or before the occurrence of such an event, provides for the payment of those benefits to the personal representatives or beneficiaries of the estates of those members, (Replaced 4 of 1998 s. 2) and includes a proposed provident fund scheme; re-domiciled company (經遷冊公司) has the meaning given by section 2(1) of the Companies Ordinance (Cap. 622); (Added 14 of 2025 s. 230) record (紀錄) means any record of information, however compiled, recorded or stored, and includes— (a) any book, a register and any other document containing information; and (b) any disc, tape or other article from which information is capable of being produced; (Added 4 of 1998 s. 2) registered intermediary (註冊中介人) means— (a) a principal intermediary as defined by section 34G; or (b) a subsidiary intermediary as defined by section 34H; (Added 16 of 2012 s. 4) registered scheme (註冊計劃) means a provident fund scheme registered under section 21 as an employer sponsored scheme or a master trust scheme or registered under section 21A as an industry scheme; (Replaced 4 of 1998 s. 2) regulated person (受規管者) means— (a) a registered intermediary; or (b) a responsible officer of a principal intermediary, as defined by section 34I; (Added 16 of 2012 s. 4) relevant employee (有關僱員) means an employee of 18 years of age or over and below retirement age; relevant income (有關入息) means— (a) in the case of a relevant employee, any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance, expressed in monetary terms, paid or payable by an employer (directly or indirectly) to that relevant employee in consideration of his employment under that contract, but does not include severance payments or long service payments under the Employment Ordinance (Cap. 57); (Amended 1 of 2008 s. 56*) (b) in the case of a self-employed person, income of that person as ascertained in accordance with the regulations; (Amended 4 of 1998 s. 2) Editorial Note: * See section 57 of the Mandatory Provident Fund Schemes (Amendment) Ordinance 2008 (1 of 2008) for the application provision relating to the amendment made by section 56 of that Ordinance. remuneration (酬金) includes travel and subsistence allowances; (Added 4 of 1998 s. 2)retirement age (退休年齡), in relation to an employee or self-employed person, means 65 years of age or, if the regulations prescribe an earlier age, that earlier age; (Amended 4 of 1998 s. 2; 2 of 2002 s. 2)scheme (計劃) means a provident fund scheme;scheme administration function (計劃管理職能)—(a) means a function of an approved trustee of a registered scheme with respect to the administration of the scheme; and(b) includes—(i) any such function that is conferred or imposed under this Ordinance; and(ii) any such function that is referred to or described in the guidelines; (Added 40 of 2021 s. 3)scheme administration service (計劃管理服務) means any service or facility provided for the administration of a registered scheme; (Added 40 of 2021 s. 3)scheme member (計劃成員), in relation to a registered scheme, means a person who has a beneficial interest in the registered scheme;Secretary (局長) means the Secretary for Financial Services and the Treasury; (Added 40 of 2021 s. 3)section 19N notice (第19N條公告) means a notice published under section 19N; (Added 40 of 2021 s. 3)self-employed person (自僱人士) means a person whose relevant income (otherwise than in the capacity as an employee) derives from his production (in whole or in part) of goods or services in Hong Kong, or his trade in goods or services in or from Hong Kong;service provider (服務提供者), in relation to a provident fund scheme—(a) means any of the following persons appointed or engaged by the trustee of the scheme to provide services for the purposes of the scheme—(i) an investment manager;(ii) a custodian of scheme assets;(iii) any other person;(b) includes a person to whom the provision of those services is delegated by a person mentioned in paragraph (a)(i), (ii) or (iii); and(c) does not include—(i) a person appointed or engaged as an auditor, solicitor, actuary or registered intermediary; or(ii) the system operator of an electronic MPF system; (Replaced 40 of 2021 s. 3)share (股份) means a share in the capital of a company, and includes the stock or any part of the stock of the company; (Added 4 of 1998 s. 2)specified entity (指明實體) means—(a) the eMPF Platform Company Limited; or(b) a wholly owned subsidiary established under section 6DA for the purpose mentioned in section 6DA(b) (whether or not it is also established for the purpose mentioned in section 6DA(a)); (Added 40 of 2021 s. 3)spouse (配偶), in relation to a person, includes a person of the opposite sex with whom the person is cohabiting in a bona fide domestic relationship as man and wife; (Added 4 of 1998 s. 2)subsidiary (附屬公司) has the meaning given by section 15 of the Companies Ordinance (Cap. 622) for the purposes of that Ordinance; (Added 1 of 2008 s. 51. Amended 28 of 2012 ss. 912 & 920)system operator (系統營運者)—see section 19I(2); (Added 40 of 2021 s. 3)tax deductible voluntary contributions (可扣稅自願性供款) means the contributions that are paid into a TVC account under section 11A(2)(a); (Added 7 of 2019 s. 10)the guidelines (指引) means guidelines issued under section 6H; (Added 4 of 1998 s. 2)the regulations (《規例》) means regulations made under section 46 and in force; (Added 4 of 1998 s. 2)the rules (《規則》) means rules made under section 47 and in force; (Added 4 of 1998 s. 2)total incapacity (完全喪失行為能力), in relation to a scheme member, means permanent unfitness to perform the kind of work that the member was last performing before becoming incapacitated; (Added 4 of 1998 s. 2. Amended 29 of 2002 s. 2)trustee (受託人) includes a prospective trustee;TVC account (可扣稅自願性供款帳户) means an account opened under section 11A(1); (Added 7 of 2019 s. 10)voluntary contribution (自願性供款) means a contribution paid to a registered scheme in accordance with section 11; (Added 4 of 1998 s. 2) voting share (有表決權股份), in relation to a company, means an issued share in the company that confers a right to vote, not being a right to vote that is exercisable only in one or more of the following circumstances— (a) during a period during which a dividend (or part of a dividend) in respect of the share is in arrears; (b) on a proposal by the company to redeem or purchase its own shares; (c) on a proposal by the company to reduce its share capital; (d) on a proposal that affects rights attached to the share; (e) on a proposal to wind up the company; (f) on a proposal for the disposal of the whole of the company’s property, business and undertaking; (g) during the winding up of the company; (Added 4 of 1998 s. 2. Amended E.R. 4 of 2019) wholly owned subsidiary (全資附屬公司) means a wholly owned subsidiary established under section 6DA; (Added 16 of 2020 s. 3) working day (工作日) means any day other than— (a) a public holiday; (b) a gale warning day or black rainstorm warning day as defined by section 71(2) of Cap. 1. (Added 2 of 2002 s. 2. Amended 40 of 2021 s. 3) (Amended 4 of 1998 s. 2; 11 of 2009 s. 3; E.R. 4 of 2019)(2) If relevant employees—(a) are engaged in an industry for which a provident fund scheme is registered as an industry scheme; and (b) employed in that industry by an employer on a day to day basis or for a fixed period of less than 60 days, 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)(3) 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)(4) Subsection (5) applies if—(a) a provision of this Ordinance requires any document or information to be provided or given (however described) in a form specified or approved by the Authority, or in any other form provided by this Ordinance; and(b) because of Part 3B, the document or information is to be provided or given (however described) by means of an electronic MPF system. (Added 40 of 2021 s. 3)(5) 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) 3. Application This Ordinance binds the Government. 4. Exemptions (1) The persons specified in Part 1 of Schedule 1 are exempt from the provisions of this Ordinance to the extent described therein.(2) 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)(3) 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)(a) for a limited period only; or(b) who is a member of a provident, pension, retirement or superannuation scheme (however described) of a place outside Hong Kong, shall be exempt from the provisions of Part 3. (Amended 16 of 2012 s. 5)(4) 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)(5) In this section, limited period (有限期間) means a period determined for the purposes of this section in accordance with the regulations. (Replaced 4 of 1998 s. 2)(Amended E.R. 1 of 2012; E.R. 1 of 2013) 5. Members of certain occupational retirement schemes to be exempted from this Ordinance (1) 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.(2) The Authority may grant an exemption—(a) either on its own initiative or on the application of the trustee of the occupational retirement scheme concerned or the employer whose employees are members of the scheme; and(b) subject to such conditions as the Authority considers appropriate.(3) 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)(3A) 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)(4) 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.(5) The regulations may—(a) prescribe the circumstances in which an exemption under this section may be granted; and (b) prescribe requirements that are to be complied with as a condition for the granting of such an exemption; and(c) empower the Authority to revoke such an exemption for failure to comply with any requirements imposed as a condition of granting the exemption.(Replaced 4 of 1998 s. 2) 5A. Register of exempt schemes to be kept (1) 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.(2) The register is to be kept at the head office of the Authority in Hong Kong.(3) Members of the public are entitled, without charge, to inspect the register during the ordinary business hours of the Authority.(Added 4 of 1998 s. 2) Part 2 Mandatory Provident Fund Schemes Authority (Format changes—E.R. 1 of 2013) 6. Establishment of Mandatory Provident Fund Schemes Authority (1) There is established by this section a corporation with the corporate name of “Mandatory Provident Fund Schemes Authority”.(2) The Authority—(a) has perpetual succession; and(b) may take legal proceedings and be proceeded against in its corporate name; and(c) may, for the purpose of enabling it to exercise or perform its functions—(i) acquire, hold and dispose of real and personal property; and(ii) enter into and carry out, any agreement with the Government for the management and control by the Authority of any property held, or managed and controlled, by the Government; and(iii) enter into and carry out, any agreement with the Government for the employment by, or the secondment to, the Authority of any specified public officers or specified class of public officers; and(iv) enter into, carry out, assign or accept the assignment of, vary or rescind, any contract, agreement or other obligation; and(v) receive and expend monies; and (Added 16 of 2020 s. 4)(ca) may, for the purpose of enabling a specified entity to perform any of its functions under section 6EA—(i) receive monies from or on behalf of a specified entity; and(ii) provide monies to, or hold or expend monies for, the entity; and (Added 40 of 2021 s. 4)(d) may do, and be subject to, all other things that bodies corporate may do and be subject to and that are necessary for, or are incidental to, the exercise of its functions.(3) The Authority is required to have a seal.(4) 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)(Replaced 4 of 1998 s. 2) 6A. Membership of Authority (1) The Authority is to consist of not fewer than 10 directors appointed by the Chief Executive.(2) Of the directors—(a) not fewer than 4 are to be executive directors; and(b) the remainder are to be non-executive directors.(3) Of the non-executive directors—(a) at least 1 but no more than 2 are to be persons who, in the opinion of the Chief Executive, represent the interests of participating employers; and(b) at least 1 but no more than 2 are to be persons who, in the opinion of the Chief Executive, represent the interests of relevant employees.(4) In appointing the directors, the Chief Executive must ensure that—(a) a majority of the directors are non-executive directors; and(b) 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.(5) A director must exercise a reasonable degree of care and diligence so as to ensure that the Authority exercises and performs its functions properly.(6) The Authority may exercise or perform any of its functions despite a vacancy in its membership.(7) Schedule 1A has effect with respect to the directors and procedure of the Authority.(Added 4 of 1998 s. 2) 6B. Managing Director of Authority (1) The Chief Executive is to appoint one of the executive directors as the Managing Director of the Authority.(2) The Managing Director—(a) is the administrative head of the Authority and is responsible, subject to the direction of the Authority, for administering the affairs of the Authority; and(b) has, subject to that direction, such other responsibilities as may be assigned by the Authority.(Added 4 of 1998 s. 2) 6C. Chairperson and deputy chairperson of the Authority (1) The Chief Executive is to appoint one of the non-executive directors to be the chairperson of the Authority.(2) The Chief Executive may appoint one of the directors to be the deputy chairperson of the Authority. (Replaced 40 of 2021 s. 5)(3) 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)(Added 4 of 1998 s. 2) 6D. Authority may establish committees (1) The Authority may establish committees to give advice and assistance to the Authority in connection with any matter with which the Authority is concerned.(2) 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.(3) 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.(4) 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.(5) In exercising its functions, a committee is required to comply with any direction given by the Authority.(Added 4 of 1998 s. 2) 6DA. Authority may establish wholly owned subsidiary The Authority may, with the approval of the Financial Secretary, establish a wholly owned subsidiary for any of the following purposes— (Amended 40 of 2021 s. 6)(a) facilitating the performance of the Authority’s functions;(b) administering and operating an electronic system, and providing scheme administration services for approved trustees, for the purposes of Part 3B.(Added 16 of 2020 s. 5. Amended 40 of 2021 s. 6) 6E. Functions of Authority (1) The functions of the Authority are as follows—(a) to be responsible for ensuring compliance with this Ordinance;(b) to register provident fund schemes as registered schemes;(c) to approve qualified persons to be approved trustees of registered schemes;(d) to regulate the affairs and activities of approved trustees and to ensure as far as reasonably practicable that those trustees administer the registered schemes for which they are responsible in a prudent manner;(da) to regulate sales and marketing activities, and the giving of advice, in relation to registered schemes; (Added 16 of 2012 s. 6)(e) to make rules or guidelines for the payment of mandatory contributions and for the administration of registered schemes with respect to those contributions; (ea) to consider and propose reforms of the law relating to occupational retirement schemes or provident fund schemes; (Added 2 of 2002 s. 4)(eb) to promote and encourage the development of the retirement scheme industry in Hong Kong, including the adoption of a high standard of conduct and sound prudent business practices by trustees and other service providers; (Added 2 of 2002 s. 4)(ec) to oversee the operation of an electronic MPF system, including—(i) approving rules as described in section 19K(2)(a);(ii) giving to the system operator and approved trustees directions or instructions the Authority considers appropriate for safeguarding the integrity and stability of the system; and(iii) monitoring the compliance with the operating rules and the directions and instructions mentioned in subparagraph (ii) by the system operator; (Added 40 of 2021 s. 7)(ed) to supervise the performance by a specified entity of any of the functions assigned, conferred or imposed under section 6EA(1)(d) and (2) to the entity; (Added 40 of 2021 s. 7)(ee) to enhance the understanding and knowledge of the members of the public of the features, objectives, operations and investments of registered schemes; (Added 40 of 2021 s. 7)(f) to exercise such other functions as are conferred or imposed on the Authority by or under this Ordinance or any other Ordinance.(2) The Authority has such ancillary powers as may be necessary to enable it to exercise its functions.(3) 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.(Added 4 of 1998 s. 2) 6EA. Functions of specified entity (1) The functions of a specified entity are as follows—(a) to assist the Authority in performing the Authority’s functions, including performing any functions of the Authority delegated to the specified entity under section 6F(2);(b) if an electronic system administered and operated by the specified entity is designated under section 19I(1), to perform the functions of the system operator of the system;(c) to perform any particular function assigned to the specified entity under subsection (2);(d) to perform any other functions conferred or imposed on the specified entity under this Ordinance or any other enactment.(2) 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.(3) A specified entity may—(a) for the purpose of performing any of its functions—(i) employ or engage any person to assist the specified entity in performing the function;(ii) establish and maintain any general or special reserve fund, carry to the credit of the fund any sums that the specified entity considers appropriate and make any disbursement that the entity considers appropriate from the fund;(iii) borrow or otherwise raise money;(iv) receive grants from the Government;(b) establish an electronic system for the purposes of Part 3B;(c) charge any fee for providing any service or facility under this Ordinance or any other enactment;(d) seek reimbursement from persons who use the service or facility mentioned in paragraph (c);(e) invest, in the way approved by the Financial Secretary, any money of the specified entity that is not immediately required; and(f) do anything that is necessary for or expedient to the performance of any of the functions of the specified entity.(Added 40 of 2021 s. 8) 6F. Authority may delegate functions and authorize subdelegation of functions (1) The Authority may in writing delegate any of its functions, other than a specified function, to—(a) a committee established under section 6D;(b) a wholly owned subsidiary that is not a specified entity; or(c) a designated person.(2) The Authority may in writing delegate to a specified entity any of its functions, other than—(a) a specified function; and(b) a function under section 6E(1)(a), (b), (c), (da), (e), (ec), (ed) or (f).(3) 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.(4) Schedule 1B has effect in relation to a delegation or subdelegation under this section.(5) In this section—designated person (指定人士) means—(a) a director or employee of the Authority; or(b) a person of a class prescribed by the regulations;specified function (指明職能) means—(a) the power of the Authority under this section; or(b) the power of the Authority under section 6DA.(Replaced 40 of 2021 s. 9) 6G. Power to employ staff and engage consultants and agents, etc. (Amended 40 of 2021 s. 10)(1) The Authority may employ such staff as it requires to exercise or perform its functions.(2) The Authority may, after consultation with the Financial Secretary, fix the salaries, wages and other conditions of employment of its staff.(3) 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.(4) The Authority may— (Amended 40 of 2021 s. 10)(a) engage consultants for the purpose of obtaining expert advice; and(b) engage consultants, advisers and agents to assist the Authority in performing the Authority’s functions. (Amended 40 of 2021 s. 10)(5) 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)(Added 4 of 1998 s. 2) 6H. Authority may issue guidelines (1) 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)(2) A guideline—(a) may consist of a code, standard, rule, specification or provision relating to provident fund schemes or a class of such schemes; and(b) may apply, incorporate or refer to any document that has been published by a person, either as in force at the time when it is issued under this section or as amended or published from time to time.(3) 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).(4) The Authority must publish a guideline issued under this section in the Gazette or in some other publication determined by the Authority.(5) 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.(6) 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—(a) the guideline is admissible in evidence in the proceedings; and(b) proof that the person contravened or did not contravene the guideline may be relied on by any party to the proceedings as tending to establish or negate the matter.(7) 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.(8) 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)(Added 4 of 1998 s. 2) 6I. Authority to prepare annual report (1) As soon as practicable after the end of each financial year of the Authority, the Authority must prepare a report as to—(a) the operation of this Ordinance during that year; and(b) the activities of the Authority during that year.(2) 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—(a) the financial statements of the Authority for the financial year to which the report relates; and (b) the report of the Authority’s auditor on those statements.(3) The Financial Secretary may publish the documents delivered in accordance with subsection (2) in such manner as the Financial Secretary thinks fit.(Added 4 of 1998 s. 2) 6J. Authority to prepare corporate plan (1) The Authority must, before the end of each financial year of the Authority, prepare a corporate plan for its next financial year.(2) A corporate plan must specify—(a) the objectives of the Authority’s activities for the financial year concerned; and(b) the nature and scope of the activities to be undertaken in order to achieve those objectives; and(c) a budget of estimated expenditure for achieving those objectives.(3) 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.(4) As soon as practicable after completing the preparation of a corporate plan, the Authority must deliver the plan to the Financial Secretary.(5) The Financial Secretary may publish the corporate plan delivered in accordance with subsection (4) in such manner as the Financial Secretary thinks appropriate.(6) 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.(Added 4 of 1998 s. 2) 6K. Preparation of other reports by Authority (1) 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.(2) The Financial Secretary may, from time to time, request the Authority to provide the Financial Secretary with a report as to—(a) the operation of this Ordinance; or(b) the activities of the Authority.(3) The Authority must comply with a request made under subsection (2) as soon as practicable after receiving it.(Added 4 of 1998 s. 2) 6KA. Designation of electronic system by Authority (1) 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)(2) The Authority may designate under subsection (1) an electronic system that is established and operated by— (Amended 16 of 2020 s. 8)(a) the Authority; or(b) a wholly owned subsidiary. (Added 16 of 2020 s. 8)(3) 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.(4) 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)(5) 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.(6) A suspension under subsection (5)—(a) may take effect in relation to any person who uses, or who is required by law to use, the designated electronic system;(b) may take effect—(i) for a period, or until the occurrence of an event, determined by the Authority; or(ii) until further notice by the Authority; and(c) may take effect subject to any condition that the Authority considers appropriate.(7) 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.(8) In this section—designated electronic system (指定電子系統) means an electronic system designated under subsection (1).(Added 16 of 2012 s. 8)Financial Provisions 6L. Financial year of the Authority The financial year of the Authority is—(a) the period beginning with the commencement* of this section and ending with 31 March next following; and(b) the period of 12 months ending on 31 March in each subsequent year.(Added 4 of 1998 s. 2) Editorial Note: * Commencement date: 12 March 1999. 6M. MPFA Administration Account (1) 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”.(2) 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)(3) 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.(Added 4 of 1998 s. 2) 6N. Authority to keep proper accounting records (1) The Authority must keep such accounting records as correctly explain its financial transactions and financial position and so that—(a) true and fair financial statements can be prepared from time to time; and(b) those statements can be conveniently and properly audited in accordance with section 6P.(2) 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—(a) an income and expenditure account that gives a true and fair view of the Authority’s income and expenditure for that year;(b) a balance sheet as at the end of that year that provides a true and fair view of the Authority’s financial position as at the end of that year.(3) The Authority must ensure that the financial statements comply with any accounting standards notified to the Authority in writing by the Financial Secretary.(Added 4 of 1998 s. 2) 6O.

Authority to appoint auditor (1) As soon as practicable after the commencement* of this section, the Authority must appoint an auditor to audit the accounts of the Authority.(2) As soon as practicable after a vacancy occurs in the office of auditor, the Authority must appoint another auditor to fill the vacancy.(3) An appointment under this section does not take effect until it is approved by the Financial Secretary.(4) The Authority may terminate the appointment of an auditor of the Authority but only with the prior approval of the Financial Secretary.(Added 4 of 1998 s. 2) Editorial Note: * Commencement date: 12 March 1999. 6P. Authority’s financial statements to be audited (1) 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.(2) 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.(3) 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.(4) The Authority’s auditor is entitled—(a) to have access at all reasonable times to the Authority’s accounting records; and(b) to require the Managing Director and any member of the staff of the Authority to provide the auditor with such explanations and information as the auditor considers necessary for the purpose of conducting the audit.(5) As soon as practicable after completing the audit and preparing the auditor’s report, the Authority’s auditor must—(a) attach the report to, or endorse the report on, the financial statements that were audited; and(b) deliver those statements and the report to the Authority.(6) 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.(Added 4 of 1998 s. 2) 6PA. Power of Director of Audit to examine Authority’s or wholly owned subsidiary’s documents etc. (1) 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.(2) For the purpose of conducting the examination, the Director of Audit may, at any reasonable time—(a) have full and free access to any books, accounts, vouchers, records or documents in the custody or under the control of the specified body;(b) make a copy of the whole or any part of those books, accounts, vouchers, records or documents; and(c) require a person who holds or is accountable for those books, accounts, vouchers, records or documents to give any information or explanation that the Director of Audit considers necessary.(3) The Director of Audit may report to the President of the Legislative Council the results of the examination.(4) Subsection (1) does not empower the Director of Audit to question the merits of the policy objectives of the specified body.(Added 40 of 2021 s. 12) 6Q. Investment of surplus funds The Authority may invest money held in the MPFA Administration Account in any manner in which trust funds may be lawfully invested or in any other manner approved by the Financial Secretary.(Added 4 of 1998 s. 2) 6QA. Authority may borrow money The Authority may, with the approval of the Financial Secretary, borrow money temporarily, on such security or other conditions as it considers expedient, for the purposes of—(a) the settlement of transactions in securities;(b) acquiring an overdraft banking facility;(c) dealing with an emergency; or(d) dealing with any other circumstances which could not have been foreseen.(Added 2 of 2002 s. 5)Advisory Committee 6R. Establishment of Advisory Committee (1) 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”.(2) The Advisory Committee is to consist of—(a) an executive director of the Authority designated by the Authority; and(b) no fewer than 9, and no more than 11, other members appointed by the Chief Executive.(3) 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.(4) In appointing persons under subsection (2)(b), the Chief Executive must ensure that included among those persons are—(a) one or more persons who, in the Chief Executive’s opinion, have knowledge of, or experience in, investments and financial management; and(b) one or more persons who, in the Chief Executive’s opinion, have knowledge of, or experience in, the conduct of retirement benefit schemes; and(c) one or more persons who, in the Chief Executive’s opinion, represent the interests of participating employers; and(d) one or more persons who, in the Chief Executive’s opinion, represent the interests of relevant employees, 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.(5) The Chief Executive must consult with the Authority before appointing the persons referred to in subsection (2)(b).(6) The Authority must publish in the Gazette a notice of the appointment of members of the Advisory Committee.(7) 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.(8) The Chief Executive may, at any time, remove an appointed member from office by notice given to the member in writing.(9) An appointed member may, at any time, resign from membership of the Advisory Committee by notice in writing given to the Chief Executive.(Added 4 of 1998 s. 2) 6S. Meetings of the Advisory Committee (1) 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.(2) A meeting of the Advisory Committee is to be presided over by—(a) the chairperson; and(b) in the absence of the chairperson, the deputy chairperson; and(c) in the absence of the chairperson and deputy chairperson, a member elected by the members present at the meeting.(3) The quorum for a meeting of the Advisory Committee is a majority of its members for the time being.(Added 4 of 1998 s. 2) 6T. Functions of Advisory Committee (1) The functions of the Advisory Committee are—(a) to make recommendations to the Authority as to the operation of this Ordinance and the effectiveness or efficiency of the Authority; and(b) to advise the Authority with respect to any matter referred to that Committee by the Authority.(2) The Advisory Committee has such ancillary powers as may be necessary to enable it to exercise its functions.(3) 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.(Added 4 of 1998 s. 2)Industry Schemes Committee 6U. Establishment of Industry Schemes Committee (1) 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”.(2) The Industry Schemes Committee is to consist of the following members—(a) a chairperson;(b) at least 1, but no more than 2, representatives of the approved trustee of each industry scheme nominated by that trustee;(c) an executive director of the Authority designated by the Authority;(d) not fewer than 6 other persons.(3) The members (other than the member referred to in subsection (2)(c)) are to be appointed by the Financial Secretary.(4) The Financial Secretary must consult with the Authority before appointing the members referred to in subsection (2)(a) and (d).(5) In appointing the persons referred to in subsection (2)(d), the Financial Secretary must ensure that included among those persons are—(a) one or more persons who, in the Financial Secretary’s opinion, represent the interests of participating employers; and(b) one or more persons who, in the Financial Secretary’s opinion, represent the interests of relevant employees, 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.(6) The Authority must publish in the Gazette a notice of the appointment of members of the Industry Schemes Committee.(7) 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.(8) The Financial Secretary may, at any time, remove an appointed member from office by notice given to the member in writing.(9) An appointed member may, at any time, resign from membership of the Industry Schemes Committee by notice in writing given to the Financial Secretary.(Added 4 of 1998 s. 2) 6V. Meetings of Industry Schemes Committee (1) 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.(2) The quorum for a meeting of the Industry Schemes Committee is a majority of the members and must include—(a) for each industry scheme, at least 1 of the members referred to in section 6U(2)(b); and(b) the member referred to in section 6U(2)(c).(3) A meeting of the Industry Schemes Committee is to be presided over by—(a) the chairperson; and(b) in the absence of the chairperson, a member elected by the members present at the meeting.(Added 4 of 1998 s. 2) 6W. Functions of Industry Schemes Committee (1) The functions of the Industry Schemes Committee are as follows—(a) to make recommendations to the Authority as to a matter relating to the operation of industry schemes generally or to the operation of any particular industry scheme; (b) to examine reports provided by the Authority and by approved trustees of industry schemes to ascertain whether or not those trustees are complying with the requirements and standards that apply to industry schemes;(c) to determine whether or not the provisions of this Ordinance that apply to industry schemes in particular are effective and, if they are found to be ineffective, to advise the Authority as to the measures that need to be taken to render them effective;(d) to advise the Authority as to ways in which the administration or operation of industry schemes could be improved;(e) to advise the Authority as to ways in which the interests of members of industry schemes could be protected or better protected.(2) The Industry Schemes Committee has such ancillary powers as may be necessary to enable it to exercise its functions.(3) 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.(Added 4 of 1998 s. 2) Part 3 Mandatory Contributions and Voluntary Contributions (Amended 30 of 2008 s. 3)(Format changes—E.R. 1 of 2013) 7. Employer to arrange for employees to become scheme members, etc. (1) 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.(1A) Every employer of a relevant employee must take all practicable steps to ensure that, after the expiration of the permitted period—(a) if the employer has complied with subsection (1) in respect of the employee, the employee continues to be a member of a registered scheme throughout his employment with that employer;(b) if the employer has not complied with subsection (1) in respect of the employee, the employee becomes a member of a registered scheme and thereafter continues to be a member of a registered scheme throughout his employment with that employer. (Added 29 of 2002 s. 3)(2) Nothing in this section prevents an employer of 2 or more relevant employees from procuring for those employees membership in different registered schemes.(3) For the purposes of subsection (1)—(a) the permitted period is the period specified by the Authority by notice published in the Gazette for the purposes of this section; and(b) the relevant time is—(i) in the case of an employer who is employing a relevant employee at the commencement* of this section, the time of that commencement; and(ii) in the case of an employer who enters into a contract of employment with a relevant employee after that commencement, the beginning of the date on which the employment begins. (Amended 2 of 2002 s. 6)(Replaced 4 of 1998 s. 2) Editorial Note: * Commencement date: 1 December 2000. 7A. Employer and relevant employees required to contribute to registered scheme (1) An employer who, at the commencement* of this section, is employing a relevant employee must, for each contribution period occurring after that commencement—(a) from the employer’s own funds, contribute to the relevant registered scheme the amount determined in accordance with subsection (3); and(b) subject to subsection (7), deduct from the employee’s relevant income for that period as a contribution by the employee to that scheme the amount determined in accordance with subsection (4).(2) 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—(a) from the employer’s own funds, contribute to the relevant registered scheme the amount determined in accordance with subsection (3); and(b) subject to subsection (7), deduct from the employee’s relevant income for that period as a contribution by the employee to the scheme the amount determined in accordance with subsection (4).(3) For the purposes of subsections (1)(a) and (2)(a), the amount to be contributed by an employer for a contribution period is—(a) in the case of a relevant employee (other than a casual employee who is a member of an industry scheme), an amount equal to the prescribed percentage of the employee’s relevant income for that period; and(b) in the case of a casual employee who is a member of an industry scheme, an amount determined by reference to a scale specified in an order made in accordance with subsection (6).(4) 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—(a) in the case of a relevant employee (other than a casual employee who is a member of an industry scheme), an amount equal to the prescribed percentage of the employee’s relevant income for that period; and(b) in the case of a casual employee who is a member of an industry scheme, an amount determined by reference to a scale specified in an order made in accordance with subsection (6).(5) 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.(6) 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.(7) An employer must not, in respect of an employee (not being a casual employee) whose wage period—(a) is not more than 1 month, make a deduction under subsection (2)(b) in respect of the employee’s relevant income earned for any wage period that commences on or before the 30th day of employment after the relevant time;(b) is more than 1 month, make a deduction under subsection (2)(b) in respect of the employee’s relevant income earned for the period commencing from the relevant time and ending on the last day of the calendar month in which the 30th day of employment after the relevant time falls. (Replaced 29 of 2002 s. 4)(8) 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.(9) 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. (10) In this section— contribution period (供款期)— (a) in relation to an employer of a relevant employee (not being a casual employee), means each period for which the employer pays or should pay relevant income to the employee, and includes such a period occurring within, or that coincides with, the first 60 days of employment after the relevant time; and (b) in relation to a relevant employee (not being a casual employee) whose wage period—(i) is not more than 1 month, means each period for which the employer pays or should pay relevant income to the employee, but does not include any wage period commencing on or before the 30th day of employment after the relevant time;(ii) is more than 1 month, means each period for which the employer pays or should pay relevant income to the employee, but does not include the period commencing from the relevant time and ending on the last day of the calendar month in which the 30th day of employment after the relevant time falls; and (Replaced 29 of 2002 s. 4) (c) in relation to an employer and a relevant employee who is a casual employee, means each period for which the employer pays or should pay relevant income to the employee; (Amended 2 of 2002 s. 7) relevant time (有關時間) has the same meaning as in section 7(3); (Amended 29 of 2002 s. 4)wage period (工資期), in relation to an employee and his employer, means the period for which the employee is paid, or should be paid, relevant income by the employer. (Added 29 of 2002 s. 4)(11) This section is subject to sections 9 and 10.(Added 4 of 1998 s. 2) Editorial Note: For the transitional provision relating to the amendments made by the Mandatory Provident Fund Schemes (Amendment) (No. 2) Ordinance 2002 (29 of 2002), see section 15 of that Ordinance. * Commencement date: 1 December 2000. 7AA. Employer required to pay contributions to Authority where relevant employee not member of registered scheme (1) This section applies if—(a) at the date of commencement* of this section; or(b) at any time after that date, a relevant employee of an employer is not a member of a registered scheme as required by section 7.(2) 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—(a) from the employer’s own funds, contribute to a registered scheme that is to be determined in accordance with section 7AC the amount determined in accordance with subsection (4); and(b) subject to subsection (6), deduct from the employee’s relevant income for that period as a contribution by the employee to that scheme the amount determined in accordance with subsection (4).(3) 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—(a) from the employer’s own funds, contribute to a registered scheme that is to be determined in accordance with section 7AC the amount determined in accordance with subsection (4); and(b) subject to subsection (6), deduct from the employee’s relevant income for that period as a contribution by the employee to that scheme the amount determined in accordance with subsection (4).(4) 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.(5) 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.(6) An employer must not, in respect of an employee (not being a casual employee) whose wage period—(a) is not more than 1 month, make a deduction under subsection (2)(b) or (3)(b) in respect of the employee’s relevant income earned for any wage period that commences on or before the 30th day of employment after the relevant time; or(b) is more than 1 month, make a deduction under subsection (2)(b) or (3)(b) in respect of the employee’s relevant income earned for the period commencing from the relevant time and ending on the last day of the calendar month in which the 30th day of employment after the relevant time falls.(7) 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.(8) This section is subject to sections 9 and 10.(9) 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.(10) 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.(11) In this section— contribution day (供款日)— (a) in relation to a contribution payable for a contribution period by an employer in respect of a relevant employee who is not a casual employee, means, subject to subsection (12)—(i) where the contribution period is wholly or partly within the permitted period after the relevant time, the tenth day after—(A) the last day of the month in which the permitted period ends; or(B) the last day of the month in which the contribution period ends, whichever is the later; or(ii) where the contribution period is not wholly or partly within the permitted period after the relevant time, the tenth day after the last day of the month in which the contribution period ends; and (b) in relation to a contribution payable for a contribution period by an employer in respect of a relevant employee who is a casual employee, means, subject to subsection (12)—(i) where the contribution period is wholly or partly within the permitted period after the relevant time, the tenth day after the last day of the contribution period in which the permitted period ends; or(ii) where the contribution period is not wholly or partly within the permitted period after the relevant time, the tenth day after the last day of the contribution period; contribution period (供款期) has the same meaning as in section 7A(10);permitted period (特准限期) means, subject to subsection (13)—(a) for a relevant employee who is not a casual employee, 60 days; or(b) for a casual employee, 10 days; (Replaced 1 of 2015 s. 4)relevant time (有關時間) has the same meaning as in section 7(3)(b);wage period (工資期) has the same meaning as in section 7A(10).(12) 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)(12A) The day specified for subsection (12) is—(a) a Saturday;(b) a public holiday;(c) a gale warning day or black rainstorm warning day as defined by section 71(2) of Cap. 1; or(d) subject to subsection (12B)—a day on which the electronic MPF system (or any part of it) is suspended under section 19J or 19L(1)(a) or (b). (Added 40 of 2021 s. 13)(12B) 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)(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)(14) The day specified for subsection (13) is—(a) a Saturday;(b) a public holiday; (Amended 40 of 2021 s. 13)(c) a gale warning day or black rainstorm warning day as defined by section 71(2) of Cap. 1; or (Added 1 of 2015 s. 4. Amended 40 of 2021 s. 13)(d) a day on which the electronic MPF system (or any part of it) is suspended under section 19J or 19L(1)(a) or (b). (Added 40 of 2021 s. 13)(Added 18 of 2008 s. 5) Editorial Note: For transitional provision relating to the amendments made by the Mandatory Provident Fund Schemes (Amendment) Ordinance 2015 (1 of 2015), see Part 8 of the Amendment Ordinance. * Commencement date: 1 December 2008. 7AB. Contributions paid under section 7AA be accompanied by statement (1) 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.(2) The statement must include the following information—(a) the name and business registration number of the employer;(b) the address and telephone number of the employer;(c) the name of the contact person of the employer and the means by which the person can be contacted;(d) the registered scheme nominated by the employer to which the contributions are to be paid;(e) the name of the relevant employee and his Hong Kong Identity Card number or, if he is not the holder of a Hong Kong Identity Card, the number and issuing agency of any passport held by him;(f) the contribution period or periods to which the contributions relate;(g) the amount of relevant income of the relevant employee for the contribution period or periods;(h) the amount of contributions paid under section 7AA(2)(a) or (3)(a) by the employer in respect of the relevant employee for the contribution period or periods;(i) the amount of contributions deducted from the relevant income of the relevant employee under section 7AA(2)(b) or (3)(b) by the employer for the contribution period or periods;(j) the date of commencement of the employment of the relevant employee;(k) such other information as may be specified by the Authority.(Added 18 of 2008 s. 5) 7AC. Authority to pay contributions received under section 7AA to approved trustee The Authority must pay any contribution that is paid to it in respect of a relevant employee under section 7AA—(a) where the employee is still employed by the employer concerned at the time the Authority makes payment—(i) to the approved trustee of the registered scheme nominated by the employer for this purpose; or(ii) if the employer has not nominated a registered scheme, to the approved trustee of the registered scheme nominated by the employee for this purpose; or(iii) if neither the employer nor the employee has nominated a registered scheme, to the approved trustee of a registered scheme that the Authority considers appropriate; or(b) where the employee has ceased to be employed by the employer concerned at the time the Authority makes payment—(i) to the approved trustee of the registered scheme nominated by the employee for this purpose; or(ii) if the employee has not nominated a registered scheme, to the approved trustee of a registered scheme that the Authority considers appropriate.(Added 18 of 2008 s. 5) 7AD. Approved trustee’s duties with regard to contributions received from Authority (1) 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.(2) On receiving the contribution, the approved trustee of the registered scheme must take actions reasonably required by the Authority with regard to the contribution.(Replaced 40 of 2021 s. 14) 7AE. Certain contributions due for payment to the Authority on commencement of section 7AA (1) 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.(2) On the commencement date, the amount of contributions that—(a) would have been payable by the employer under section 7A to a registered scheme for each contribution period occurring in the specified period during which the relevant employee was not a member of a registered scheme, had the employee been such a member for the relevant contribution period; and(b) remains unpaid as at the commencement date, becomes due for payment to the Authority.(3) 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.(4) In this section—*commencement date (生效日期) means the date of commencement of section 7AA;contribution period (供款期) has the same meaning as in section 7A(10) except that it does not include the contribution period that begins on a date before the commencement date and ending on or after the commencement date;specified period (指明期間) means the period beginning on 1 December 2000 and ending on the day immediately before the commencement date.(Added 18 of 2008 s. 5) Editorial Note: * Commencement date: 1 December 2008. 7B. Sections 7, 7A and 7AA not to apply to certain employees (Amended 18 of 2008 s. 6)Sections 7, 7A and 7AA do not, except in the case of a casual employee, apply to or in respect of an employee who is employed by an employer for less than 60 days.(Added 4 of 1998 s. 2. Amended 18 of 2008 s. 6) 7C. Duty of self-employed person to become scheme member (1) Every self-employed person—(a) must, within the permitted period after the relevant time, become a member of a registered scheme; and(b) must, in accordance with the provisions of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A), before the end of each contribution period, pay to the approved trustee of the scheme from the person’s own funds for the person’s own benefit a contribution equal to the prescribed percentage of the person’s relevant income. (Amended 2 of 2002 s. 8)(2) In this section—contribution period (供款期) means a period prescribed by the regulations as a contribution period;permitted period (特准限期) means the period specified by the Authority by notice published in the Gazette for the purposes of this section; the relevant time (有關時間) means— (a) in the case of a person who is a self-employed person at the commencement* of this section, the time of that commencement; or (b) in the case of a person who becomes a self-employed person after that commencement, the beginning of the date on which the person becomes self-employed. (Amended 2 of 2002 s. 8) (3) 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.(4) For the purposes of this section, the regulations may—(a) require self-employed persons to report their relevant income to the Authority; and(b) prescribe the matters that must be included in those reports.(5) This section is subject to sections 9 and 10.(6) This section does not apply to a self-employed person who is—(a) less than 18 years of age; or(b) of or more than retirement age. (Added 2 of 2002 s. 8)(Added 4 of 1998 s. 2) Editorial Note: * Commencement date: 1 December 2000. 7D. Application of Ordinance to certain employees and self-employed persons (1) If—(a) an employer enters into a contract of employment with an employee who is less than 18 years of age; and(b) the employee reaches 18 years of age on or after the date of commencement* of this section; and(c) the employer continues to employ the employee after he reaches 18 years of age, 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.(2) If—(a) a person is self-employed before he is 18 years of age; and(b) he reaches 18 years of age on or after the date of commencement of this section; and(c) he continues to be self-employed after reaching 18 years of age, 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.(Added 1 of 2008 s. 20) Editorial Note: * Commencement date: 18 January 2008. 8. (Repealed 4 of 1998 s. 2) 9. Minimum level of income for contribution purposes (1) 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.(2) 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.(3) 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.(4) 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.(Replaced 18 of 2008 s. 7) 10. Maximum level of income for contribution purposes (1) 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.(2) 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)(3) 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.(3A) 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)(4) 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)(Replaced 18 of 2008 s. 8) 10A. Authority to conduct review of minimum and maximum levels of relevant income every 4 years (1) 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.(2) 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—(a) in respect of the minimum level of relevant income, 50 per cent of the monthly median employment earnings prevailing at the time of the review as compiled from the General Household Survey conducted by the Census and Statistics Department; and(b) in respect of the maximum level of relevant income, monthly employment earnings at 90th percentile of the monthly employment earnings distribution prevailing at the time of the review as compiled from the General Household Survey conducted by the Census and Statistics Department.(Added 29 of 2002 s. 5) Editorial Note: * Commencement date: 19 July 2002. 11. Voluntary contributions (1) 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)(2) 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)(3) 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).(4) 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.(5) 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.(6) 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)(7) Any contributions—(a) paid to a registered scheme as provided by this section; or(b) consisting of any benefits, other than minimum MPF benefits to which section 5(1) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B) applies, of a member of an ORSO exempted scheme, or an ORSO registered scheme, within the meaning of section 2(1) of the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B), transferred to a registered scheme, are voluntary, but are subject to the governing rules of the scheme. (Replaced 2 of 2002 s. 9)(8) 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.(9) The regulations may provide for all or any of the following matters—(a) the vesting of voluntary contributions in the scheme member concerned;(b) the preservation of accrued benefits derived from voluntary contributions;(c) the transfer from one registered scheme to another or from one account within a registered scheme to another account within the same scheme of accrued benefits derived from voluntary contributions;(d) the payment to or in respect of a scheme member of accrued benefits derived from voluntary contributions.(10) Tax deductible voluntary contributions are not voluntary contributions for the purposes of this section. (Added 7 of 2019 s. 12)(Replaced 4 of 1998 s. 2) 11A. Tax deductible voluntary contributions (1) 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—(a) holds a contribution account or personal account in a registered scheme; or(b) is a member of an occupational retirement scheme in respect of which an exemption has been granted under section 5.(2) The person—(a) may pay contributions into the TVC account; and(b) may hold in the account—(i) the person’s accrued benefits derived from those contributions; and(ii) the person’s accrued benefits transferred to the account in accordance with Part 12 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A).(3) 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—(a) the provisions of this Ordinance (other than sections 12A and 16);(b) the governing rules of the registered scheme in so far as they are not inconsistent with this Ordinance.(Added 7 of 2019 s. 13) 12. Contributions to vest in scheme members as accrued benefits (1) 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.(2) 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)(2A) The reference to income or profits in subsection (2) does not include interest derived from the placing on deposit of—(a) contributions or benefits—(i) received by the approved trustee of a registered scheme in respect of a member of the scheme; and(ii) during the period that the payment of the contributions or benefits into the member’s account is pending;(b) benefits—(i) moved from a constituent fund; and(ii) during the period that the investment of the benefits into another constituent fund is pending; and(c) benefits—(i) received from a constituent fund; and(ii) during the period that—(A) withdrawal of the benefits from the registered scheme concerned is pending; or(B) transfer of the benefits to another registered scheme is pending. (Added 29 of 2002 s. 6)(2B) Interest referred to in subsection (2A) must be retained by the approved trustee of the registered scheme concerned—(a) for the payment of any administrative expenses of the scheme; or(b) as income of the scheme, for the benefit of scheme members. (Added 29 of 2002 s. 6)(3) The total amount of accrued benefits vested in a scheme member from time to time is to be calculated as provided by the rules.(Replaced 4 of 1998 s. 2) 12A. Certain amounts relating to severance payments and long service payments to be paid from accrued benefits (1AA) In this section—benefits reduction provision (扣減權益條文) means the following provision of the Employment Ordinance (Cap. 57)—(a) in relation to the reduction of a part of accrued benefits by an amount of a severance payment—section 31IA; or(b) in relation to the reduction of a part of accrued benefits by an amount of a long service payment—section 31YAA or 31YB;Cap. 57 payment reduction provision (扣減《第57章》款項條文) means the following provision of the Employment Ordinance (Cap. 57)—(a) in relation to the reduction of an amount of a severance payment by a part of accrued benefits—section 31I; or(b) in relation to the reduction of an amount of a long service payment by a part of accrued benefits—section 31Y or 31YA;employer-funded MPFS benefit (僱主供款強積金計劃權益) has the meaning given by section 1(1) of Schedule 11 to the Employment Ordinance (Cap. 57);employer-funded (voluntary) MPFS benefit (僱主供款(自願性)強積金計劃權益) has the meaning given by section 2(1) of the Employment Ordinance (Cap. 57);post-transition portion (轉制後部分) has the meaning given by section 1(1) of Schedule 11 to the Employment Ordinance (Cap. 57);pre-transition portion (轉制前部分) has the meaning given by section 1(1) of Schedule 11 to the Employment Ordinance (Cap. 57);specified employee (指明僱員) has the meaning given by section 2(1) of the Employment Ordinance (Cap. 57). (Added 4 of 2022 s. 33)(1) If—(a) an employer has paid to or in respect of an employee a severance payment or long service payment in accordance with the Employment Ordinance (Cap. 57), or a part of such a payment; and(b) accrued benefits are held in a registered scheme in respect of the employee; and(c) a part of those benefits is available to be reduced by an amount of the severance payment or long service payment, or the part of such a payment, that has been so paid (removable benefits) under the benefits reduction provision, (Replaced 4 of 2022 s. 33) the employer may make an application in writing to the approved trustee of the scheme for payment of an amount under subsection (2).(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)(2A) 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—(a) if the employee is not a specified employee—the lesser of the following—(i) the amount of the removable benefits;(ii) so much of the accrued benefits mentioned in subsection (1)(b) that are employer-funded (voluntary) MPFS benefits and that would remain if they were to be reduced by an amount of the unpaid part of the severance payment or long service payment (unpaid Cap. 57 payment) under the benefits reduction provision; or(b) if the employee is a specified employee—the sum of the amounts under subparagraphs (i) and (ii)—(i) the lesser of the following—(A) so much of the removable benefits that are such benefits because of a reduction by an amount of the pre-transition portion of the paid Cap. 57 payment;(B) so much of the accrued benefits mentioned in subsection (1)(b) that are employer-funded MPFS benefits and that would remain if they were to be reduced by an amount of the pre-transition portion of the unpaid Cap. 57 payment under the benefits reduction provision;(ii) the lesser of the following—(A) so much of the removable benefits that are such benefits because of a reduction by an amount of the post-transition portion of the paid Cap. 57 payment;(B) so much of the accrued benefits mentioned in subsection (1)(b) that are employer-funded (voluntary) MPFS benefits and that would remain if they were to be reduced by an amount of the post-transition portion of the unpaid Cap. 57 payment under the benefits reduction provision. (Added 4 of 2022 s. 33)(2B) 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)(3) If—(a) an employer has not paid the whole of a severance payment or long service payment to or in respect of an employee as required by the Employment Ordinance (Cap. 57); and(b) accrued benefits are held in a registered scheme in respect of the employee; and(c) a part of those benefits is available to reduce an amount of the severance payment or long service payment, or the part of such a payment, that has not been so paid (deductible benefits) under the Cap. 57 payment reduction provision, (Replaced 4 of 2022 s. 33) 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).(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)(5) (Repealed 4 of 2022 s. 33)(6) If—(a) a change has occurred (whether by virtue of a sale or other disposition or by operation of law) in the ownership of a business in which a person is employed, or in a part of such a business, and either—(i) the person’s contract of employment (with the substitution of the new owner of the business for the previous owner) is renewed by that new owner; or(ii) the person is re-engaged by that new owner under a new contract of employment; or(b) a person is taken into the employment of a company that is an associated company of another company by which the person was employed immediately before the person was taken into that employment, 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).(6A) Where—(a) subsection (6)(a) or (b) applies to a person;(b) the new owner or associated company, as the case may be, (new employer) has assumed the liability of the previous owner or company (previous employer) for severance payment or long service payment in respect of the person;(c) the new employer has agreed to recognize the person’s length of employment with the previous employer for the purposes of that severance payment or long service payment; and(d) no accrued benefits held in a registered scheme in respect of the person have been paid in accordance with this section to the person or the previous employer, 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)(6B) Where a new employer has made an election under subsection (6A), then, for the purposes of that election—(a) section 7A(7) shall not apply to the new employer; and(b) paragraph (b) of the definition of contribution period in section 7A(10) shall be construed as if it read as follows— “(b) in relation to a relevant employee (not being a casual employee), means each period for which the employer pays or should pay relevant income to the employee; and”. (Added 29 of 2002 s. 7) (7) 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.(8) 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)(Added 4 of 1998 s. 2) Editorial Note: * Operation date: 1 May 2025. 13. Preservation of accrued benefits derived from contributions For the purpose of preserving accrued benefits in registered schemes—(a) no trustee of a registered scheme shall pay or otherwise dispose of any part of those accrued benefits to any scheme member or any other person otherwise than in accordance with the provisions of this Ordinance;(b) no relevant employee or self-employed person shall have any right or entitlement to those accrued benefits otherwise than in accordance with the provisions of this Ordinance; (Amended 7 of 2019 s. 14)(c) no scheme member has any right or entitlement otherwise than in accordance with the provisions of this Ordinance to any part of those accrued benefits in a TVC account. (Added 7 of 2019 s. 14) 14. Portability of accrued benefits (1) 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.(2) Subject to subsection (1), and in accordance with the regulations, the accrued benefits of a member of a registered scheme may be transferred—(a) to another registered scheme to which the member is eligible to belong; or(b) to another account within the same registered scheme, but only in a circumstance permitted or required by the regulations.(2A) 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)(3) If the accrued benefits of a member of a registered scheme are to be transferred under this section—(a) the approved trustee of the scheme; and(b) where those benefits are to be transferred to another registered scheme, the approved trustee of that other scheme, 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.(4) If a member of a registered scheme whose accrued benefits are to be transferred under this section—(a) ceases to be an employee of an employer; or(b) becomes an employee of an employer; or(c) does both of those things, 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.(5) The regulations may—(a) include requirements as to—(i) the notices that are to be given; and(ii) the procedure that is to be followed, in connection with the transfer of accrued benefits in accordance with this section; and(b) prescribe the procedure to be followed if a scheme member who is a relevant employee fails to comply with subsection (1).(Replaced 4 of 1998 s. 2) 15. Withdrawal of accrued benefits (1) 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) in a lump sum; or(b) by instalments. (Amended 1 of 2015 s. 6)(2) 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)(2A) Subject to subsection (2B), a scheme member referred to in subsection (2) is entitled to be paid the entirety of the accrued benefits—(a) in a lump sum; or(b) by instalments. (Added 1 of 2015 s. 6)(2B) 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)(3) 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)—(a) the scheme member’s permanent departure from Hong Kong; (Amended 1 of 2015 s. 6)(b) the scheme member’s total incapacity; and (Replaced 4 of 1998 s. 2. Amended 1 of 2015 s. 6)(c) the scheme member’s terminal illness. (Added 1 of 2015 s. 6)(4) 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)(a) to the member’s personal representatives; or(b) if there are no personal representatives of the member’s estate or if they are unwilling to act, to such person, or to a person of such class, as is specified in the regulations. (Replaced 4 of 1998 s. 2)(5) (Repealed 1 of 2008 s. 41)(6) 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)(7) For the purposes of this section, a scheme member has permanently ceased employment or self-employment if the member—(a) has ceased all employment with no intention of becoming employed or self-employed again; and(b) has ceased all self-employment with no intention of becoming self-employed or employed again. (Added 1 of 2015 s. 6) 16. Protection of accrued benefits (1) 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)(1A) 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)(2) 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) 17. Compensation for losses in respect of accrued benefits (1) 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)(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)(3) 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)(4) 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.(5) Regulations may be made under section 46 for the purposes of this section. Those regulations may include provisions for—(a) the administration of the compensation fund; and(b) the appointment of persons to be administrators of that fund; and(c) the payment of claims to make good losses of accrued benefits. (Replaced 4 of 1998 s. 2)(6) 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)(7) 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) 17A. Scheme member may claim compensation from compensation fund (1) 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) the person has suffered a loss of accrued benefits in the scheme; and(b) the loss was attributable to misfeasance or illegal conduct committed by a person concerned with the administration of the scheme.(2) A claim—(a) must be made in writing and specify the particulars of the claim (including the name of the registered scheme concerned and the name of the approved trustee of that scheme); and(b) must be lodged with the Authority within 6 months after the claimant became aware of the loss to which the claim relates.(3) A claim that is not made in accordance with subsection (2) is barred unless the Authority otherwise determines.(4) On receiving a claim made under this section, the Authority must investigate the claim to determine its validity.(5) The Authority must dismiss a claim if, after investigating the claim, the Authority is satisfied that—(a) there are no reasonable grounds for believing that a loss of accrued benefits has occurred; or(b) if there were such grounds, there is no evidence of misfeasance or illegal conduct on the part of the trustee of the scheme or any other person referred to in subsection (1)(b).(6) If the Authority dismisses a claim, it must notify the claimant of its decision, together with a statement of the reasons for it.(Added 4 of 1998 s. 2) 17B. Application to Court (1) If the Authority reasonably believes, whether as a result of a claim made under section 17A or otherwise, that—(a) a loss of accrued benefits has occurred; and(b) there is evidence of misfeasance or illegal conduct on the part of the trustee of the scheme or some other person referred to in section 17A(1)(b); and (c) the matter has not been resolved to the satisfaction of the person who may have suffered the loss of accrued benefits, the Authority must make an application to the Court to have the matter determined by it.(2) 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.(3) 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.(4) At the hearing of the application—(a) the approved trustee of the scheme; and (b) any person concerned with the administration of the scheme who is alleged to have committed misfeasance or to have engaged in the relevant illegal conduct, are entitled to appear and be heard in the proceedings.(5) On the hearing of an application made under this section, the Court must—(a) determine whether or not the person who is alleged to have suffered a loss of accrued benefits in the scheme concerned has in fact suffered that loss; and(b) if so, determine whether or not the loss was attributable to misfeasance or illegal conduct committed by a person concerned with the administration of the scheme.(6) If the Court makes determinations under subsection (5), it must, by order—(a) declare the fact and the date of the misfeasance or illegal conduct and the amount of compensation to be awarded; and(b) direct the administrators of the compensation fund to pay that amount to such person as, in its opinion, appears to be properly entitled to receive the amount.(7) 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.(8) 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)(Added 4 of 1998 s. 2) 17C. Administrators to pay compensation to specified person (1) 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.(2) The administrators of the compensation fund must pay the compensation within the period, and in the manner, prescribed by the regulations.(3) 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.(4) The interest is to be calculated in accordance with the regulations.(Added 4 of 1998 s. 2) 18. Recovery of arrears and contribution surcharges (Replaced 1 of 2008 s. 60)(1) If a mandatory contribution that falls within paragraph (a) or (aa) of the definition of mandatory contribution in section 2(1) is not paid on or before the day by which it is required to be paid under this Ordinance, it becomes due for payment to the Authority on the expiry of that day. (Replaced 18 of 2008 s. 10)(2) 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)(3) 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)(a) any arrears; and(b) any contribution surcharge payable under subsection (2) in respect of the arrears. (Amended 40 of 2021 s. 15)(4) 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)(5) The Authority must pay any arrears or contribution surcharge paid to or recovered by the Authority—(a) in the case of an employee who is still employed by the employer concerned at the time the Authority makes payment—(i) to the approved trustee of the registered scheme nominated by the employer for this purpose; or(ii) if the employer has not nominated a registered scheme, to the approved trustee of the registered scheme nominated by the employee for this purpose; or(iii) if neither the employer nor the employee has nominated a registered scheme, to the approved trustee of a registered scheme that the Authority considers appropriate; or(b) in the case of an employee who has ceased to be employed by the employer concerned at the time the Authority makes payment—(i) to the approved trustee of the registered scheme nominated by the employee for this purpose; or(ii) if the employee has not nominated a registered scheme, to the approved trustee of a registered scheme that the Authority considers appropriate; or(c) in the case of a self-employed person—(i) to the approved trustee of the registered scheme nominated by the self-employed person for this purpose; or(ii) if the self-employed person has not nominated a registered scheme, to the approved trustee of a registered scheme that the Authority considers appropriate. (Replaced 1 of 2008 s. 60)(6) 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)(6A) For the purposes of this section, the regulations may—(a) prescribe the duties of approved trustees in relation to mandatory contributions, arrears and contribution surcharges received by them; or (Amended 40 of 2021 s. 15)(b) prescribe the requirements to be complied with in relation to the recovery of arrears and contribution surcharges. (Added 1 of 2008 s. 60)(6B) For the avoidance of doubt—(a) a person’s liability to pay a contribution surcharge under subsection (2); or(b) the exercise by the Authority of its power to recover any arrears or contribution surcharge under subsection (3), 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)(7) In this section, a reference to a mandatory contribution includes a part of such a contribution.(Replaced 4 of 1998 s. 2) 19. Powers of Authority in relation to mandatory contributions (1) 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)(a) subject to subsection (2), enter, inspect and examine at any reasonable time, by day or night, any premises in which the person knows or reasonably believes relevant employees or self-employed persons are employed or carrying on business;(b) require any person found in those premises or place or any other person to produce any record required to be kept under this Ordinance or otherwise in that other person’s possession or under his control and inspect, examine and copy the same;(c) make such examination and inquiry as may be necessary to ascertain whether the requirements of this Ordinance applicable to employers, relevant employees and self-employed persons are being complied with, and seize anything which may appear to the authorized person to be or contain evidence of an offence against this Ordinance;(d) exercise any other powers which may be conferred on the authorized person by the regulations. (Amended 4 of 1998 s. 2)(2) 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)(3) 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) that an offence under this Ordinance has been, is being or is about to be committed in those premises; or(b) that there is in those premises any thing that appears to the person to be or to contain evidence of such an offence. (Added 4 of 1998 s. 2)(4) 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) 19A. Power of Authority to require production of records (1) 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)(2) 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).(Added 1 of 2008 s. 58) Part 3A Special Contributions (Part 3A added 30 of 2008 s. 4)(Format changes—E.R. 1 of 2013) 19B. Authority may pay special contributions into accounts of scheme members (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.(2) 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—(a) pay the special contribution into a sub-account of the member’s contribution account or personal account specified in the notice. (Amended 11 of 2009 s. 4)(b) (Repealed 40 of 2021 s. 16)(3) 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.(4) The Authority may specify in the notice—(a) a period that is reasonable in the circumstances within which the approved trustee must pay the special contribution into the specified sub-account.(b) (Repealed 40 of 2021 s. 16)(5) The approved trustee must—(a) after receiving the special contribution and the Authority’s notice, pay the special contribution into the specified sub-account within the period specified under subsection (4)(a).(b) (Repealed 40 of 2021 s. 16)(Amended 40 of 2021 s. 16) 19C. Authority may require information or documents necessary for paying special contributions (1) The Authority may, for the purpose of paying special contributions, by a notice in writing—(a) (Repealed 40 of 2021 s. 17)(b) require a trustee of a relevant scheme to give to the Authority any information or document specified in the notice relating to the members of the scheme;(c) require an employer of a member of a registered scheme or relevant scheme to give to the Authority any information or document specified in the notice relating to the member; and(d) require any other person whom the Authority reasonably believes to have in his possession, or under his control, any information or document relating to a member of a registered scheme or relevant scheme to give to the Authority any information or document specified in the notice relating to the member.(2) 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—(a) the member’s name;(b) the member’s date of birth;(c) the member’s Hong Kong Identity Card number or travel document number;(d) the member’s income; and(e) the member’s correspondence address, telephone number and electronic mail address.(3) The Authority may specify in the notice—(a) a manner in which the specified information or document must be given to the Authority; and(b) a period that is reasonable in the circumstances within which the specified information or document must be given to the Authority.(4) Where—(a) a person is given a notice in writing under subsection (1); and(b) the information or document specified in the notice is in the possession, or under the control, of that person, that person must give the specified information or document to the Authority in the specified manner within the specified period.(5) In this section—member (成員), in relation to a registered scheme or relevant scheme, includes a former member of the scheme;relevant scheme (有關計劃) has the same meaning as in Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B). 19D. Authority may require approved trustees to take actions necessary for paying special contributions (1) 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.(2) The Authority may specify in the notice—(a) a manner in which the approved trustee must take the specified action; and(b) a period that is reasonable in the circumstances within which the approved trustee must take the specified action.(3) 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)(4) The approved trustee must, after receiving the Authority’s notice, take the specified action in the specified manner within the specified period.(5) Where—(a) the action specified in a notice in writing given to an approved trustee of a registered scheme under subsection (1) is to register a person specified in the notice as a member of the scheme and to open a personal account for that person; and (Amended 11 of 2009 s. 5)(b) the approved trustee takes the specified action in compliance with the requirements under subsection (4), that person is deemed to have agreed in writing to comply with the governing rules of the scheme. 19E. Authority may recover special contributions that should not have been paid (1) 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—(a) withdraw from the specified account a sum equal to the special contribution or the accrued benefits derived from the special contribution, whichever is the less, and pay it to the Authority, in the manner specified in the notice.(b) (Repealed 40 of 2021 s. 18)(2) 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—(a) withdraw from the specified account a sum equal to the special contribution or the accrued benefits, whichever is the less, and pay it to the Authority, in the manner specified in the notice.(b) (Repealed 40 of 2021 s. 18)(3) The Authority may specify in the notice—(a) a period that is reasonable in the circumstances within which the approved trustee must withdraw the sum from the specified account and pay it to the Authority.(b) (Repealed 40 of 2021 s. 18)(4) The approved trustee must—(a) after receiving the Authority’s notice, withdraw the sum from the specified account, and pay it to the Authority, in the specified manner within the period specified under subsection (3)(a).(b) (Repealed 40 of 2021 s. 18)(5) 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.(Amended 40 of 2021 s. 18) 19F. Vesting of special contributions Subject to section 19E—(a) a special contribution paid by the Authority in respect of a member of a registered scheme vests in the member as accrued benefits as soon as it is paid to an approved trustee of the scheme; and(b) the provisions of this Ordinance apply to accrued benefits derived from a special contribution in the same way they apply to accrued benefits derived from a mandatory contribution paid under section 7A(1)(b) or (2)(b) or 7C. 19G. Liability to pay other contributions (1) A special contribution paid under this Part does not extinguish or reduce the liability of any person to pay any other contributions under—(a) this Ordinance;(b) the governing rules of a registered scheme; or(c) the instrument (however described) that governs a relevant scheme.(2) In this section—relevant scheme (有關計劃) has the same meaning as in Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B). 19H. Part 3A prevails over any instruments applicable to registered schemes (Amended E.R. 1 of 2013)(1) 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.(2) In this section— specified instrument (指明文書) means— (a) any governing rules; (b) any participation agreement within the meaning of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A); or (c) any articles within the meaning of the Companies Ordinance (Cap. 622). (Amended 28 of 2012 ss. 912 & 920) Part 3B Electronic MPF System (Part 3B added 40 of 2021 s. 19) Division 1 Designation of Electronic MPF System 19I. Designation of electronic MPF system by Secretary (1) The Secretary may, by notice published in the Gazette, designate an electronic system administered and operated by a specified entity—(a) to provide any services and facilities to facilitate approved trustees of registered schemes in performing their scheme administration functions; and(b) to perform any other functions specified in Schedule 12.(2) The specified entity that administers and operates an electronic system designated under subsection (1) is the system operator of the system.(3) An electronic system designated under subsection (1) is to be administered and operated subject to conditions the Secretary imposes with respect to the administration and operation of the system.(4) As soon as practicable after a notice is published under subsection (1), the Authority must publish information about the designation, including the conditions imposed by the Secretary (if any), in the way the Authority considers appropriate. Division 2 Suspension of Electronic MPF System on Authority’s Direction 19J. Suspension of electronic MPF system on direction of Authority (1) If the Authority reasonably considers it necessary to do so, the Authority may in writing direct the system operator of an electronic MPF system to suspend (in accordance with the direction) the system or any part of it from being operated or used for any purpose relating to the designation under section 19I(1).(2) The system operator must comply with the direction given under this section by the Authority.(3) A suspension under this section—(a) may take effect in relation to a person who uses, or who is required under section 19M to use, the electronic MPF system;(b) may take effect—(i) for a period, or until the occurrence of an event, determined by the Authority; or(ii) until further notice by the Authority; and(c) may take effect subject to any condition the Authority considers appropriate.(4) Information about the suspension—(a) must be published by the Authority or the system operator, or both, as soon as practicable after a direction is given under subsection (1) to the system operator; and(b) must be published in the way the Authority considers appropriate. Division 3 System Operator 19K. General duties of system operator (1) The system operator of an electronic MPF system must—(a) administer and operate the system in a proper manner; and(b) provide scheme administration services to facilitate approved trustees of registered schemes in performing their scheme administration functions.(2) The system operator must ensure that—(a) there are in place rules, made by the system operator and approved by the Authority, governing the administration and operation of the electronic MPF system and a suspension of the system under section 19L(1)(a) or (b) (operating rules);(b) the electronic MPF system is administered and operated in a safe and efficient manner calculated to minimize the likelihood of any foreseeable disruption to the functioning of the system;(c) there are in place adequate arrangements to monitor and ensure compliance with the operating rules, including arrangements regarding the resources available to the system operator; and(d) there are available to the electronic MPF system financial resources appropriate for the performance of the functions of the system.(3) For the purposes of subsection (2)(b), regard must be had in particular to the following matters or aspects in determining whether an electronic MPF system is administered and operated in a safe manner—(a) the reliability and robustness of the operation of the system;(b) access control over the system;(c) the integrity of, and access control over, the information held within the system;(d) data protection and security;(e) record keeping;(f) the risk management and control procedures relating to the operation of the system;(g) the soundness of the system;(h) the services provided to the system by the infrastructure associated with the system;(i) whether the system is administered and operated in accordance with the operating rules.(4) For the purposes of subsection (2)(b), regard must be had in particular to the following matters or aspects in determining whether an electronic MPF system is administered and operated in an efficient manner—(a) the speed and efficiency with which scheme administration services are provided by the system;(b) the overall costs of the maintenance and operation of the system.(5) To avoid doubt, the operating rules are not subsidiary legislation. 19L. Powers of system operator (1) The system operator of an electronic MPF system may exercise one or more of the following powers—(a) suspend the operation or use of the electronic MPF system (or any part of it) for scheduled maintenance;(b) suspend the operation or use of the electronic MPF system (or any part of it) because of unforeseen circumstances;(c) employ or engage any person to assist the system operator in performing the operator’s functions;(d) charge any fee for providing any service or facility under this Ordinance or any other enactment in relation to the electronic MPF system, and seek reimbursement from any person who uses the service or facility;(e) do anything that is necessary for or expedient to the performance of any of the functions of the system operator.(2) The power under subsection (1)(a) may not be exercised unless information about the suspension is published by the system operator in accordance with the operating rules before the suspension.(3) If a suspension is made under subsection (1)(b), the system operator must publish information about the suspension in accordance with the operating rules.(4) A suspension under subsection (1)(a) or (b) must be made in accordance with the operating rules. Division 4 Mandatory Use of Electronic MPF System 19M. Mandatory use of electronic MPF system and scheme administration services provided by system operator (1) Subject to subsections (2) and (3), the approved trustee of a registered scheme must use the following system and services that are made available to the approved trustee to perform their scheme administration functions—(a) the electronic MPF system; and(b) the scheme administration services provided by the system operator of the system.(2) For a pre-existing scheme, subsection (1)—(a) begins to apply on the material day to the approved trustee of the scheme with respect to a function of the trustee that is not a specific function; and(b) begins to apply on the specified day to the approved trustee of the scheme with respect to a specific function of the trustee.(3) For a newly registered scheme, subsection (1) begins to apply on the specified day to the approved trustee of the scheme with respect to a specific function of the trustee.(4) In this section—material day (關鍵日), in relation to a pre-existing scheme, means the day specified under section 19N(1) for the scheme;newly registered scheme (新註冊計劃) means a scheme that is registered under section 21 or 21A on or after the date on which Schedule 17 takes effect;pre-existing scheme (既有計劃) means a registered scheme that is not a newly registered scheme;specific function (特定職能) means a function of the approved trustee of a registered scheme described in section 153 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A) as in force immediately before the commencement* of this section;specified day (指明日) means the day on which section 80 of the 2021 Amendment Ordinance comes into operation. Editorial Note: * Commencement date: 29 October 2021. 19N. Secretary to specify day on which approved trustee of pre-existing scheme must begin to use electronic MPF system to perform scheme administration functions (other than specific function) (1) The Secretary may, by notice published in the Gazette, specify a day for a pre-existing scheme for the purposes of section 19M(2)(a).(2) Different days may be specified under subsection (1) for different pre-existing schemes. 19O. Authority’s duty to publish relevant requirement (1) As soon as practicable after a notice is published in the Gazette under section 19N(1) for a pre-existing scheme, the Authority must publish information about the relevant requirement for the scheme, including the day on which the requirement is to take effect, in the way the Authority considers appropriate.(2) In this section—relevant requirement (相關規定), in relation to a pre-existing scheme, means the requirement that the approved trustee of the scheme must comply with section 19M(1) with respect to the scheme administration functions (other than a specific function) of the approved trustee;specific function (特定職能) has the meaning given by section 19M(4). Division 5 Duties of Approved Trustees 19P. What approved trustees should do in relation to implementation of electronic MPF system etc. (1) An approved trustee of a registered scheme must have in place effective plans, procedures and systems for enabling or facilitating—(a) the proper and efficient implementation of an electronic MPF system; and(b) the effective and efficient provision of scheme administration services by the system operator of the system.(2) The Authority may, by written notice given to an approved trustee of a registered scheme—(a) require the approved trustee to take any action the Authority considers necessary for any of the purposes mentioned in subsection (1);(b) require the approved trustee to do either or both of the following—(i) to take any action the Authority considers necessary for ensuring compliance by the approved trustee with section 19M;(ii) to comply with section 19M; and(c) if the system operator of an electronic MPF system has given the approved trustee a notice under section 19R(1), require the approved trustee to do either or both of the following—(i) to take any action the Authority considers necessary for ensuring compliance by the approved trustee with section 19R(3);(ii) to comply with section 19R(3).(3) An approved trustee of a registered scheme must—(a) take—(i) actions that are reasonably required for any of the purposes mentioned in subsection (1); and(ii) other actions required by the Authority under subsection (2)(a);(b) comply with the requirements imposed on the approved trustee under subsection (2)(b); and(c) comply with the requirements imposed on the approved trustee under subsection (2)(c). 19Q. Notice to be given to certain persons in relation to section 19N notice (1) As soon as practicable after a section 19N notice is published in the Gazette, the approved trustee concerned must notify in writing each of the persons mentioned in subsection (2) of the following matters—(a) the publication of the notice;(b) the date from which the trustee must comply with the requirement under section 19M(1); and(c) the matters and activities that are to be conducted by the electronic MPF system.(2) The persons are—(a) a participating employer of the registered scheme; and(b) a member of the scheme. Division 6 Collection and Use of Certain Information 19R. Collection of certain information by system operator (1) Subject to subsection (2), the system operator of an electronic MPF system may, by written notice given to an approved trustee of a registered scheme, require the approved trustee to provide, in the way specified by the system operator, any information regarding the registered scheme—(a) that is in the trustee’s possession or under the trustee’s control; and(b) that is reasonably required by the system operator for performing any of the system operator’s functions under section 19K(1) or 19S.(2) The system operator must specify in the notice the information that is required to be provided by the approved trustee.(3) An approved trustee of a registered scheme must comply with a requirement set out in the notice given to the approved trustee under subsection (1) within the period specified in the notice.(4) The system operator may use the information obtained under this section only for performing the system operator’s functions. Division 7 Regulation of Fees relating to Scheme Administration Subdivision 1 Preliminary 19T. Interpretation (1) In this Division and Schedules 13, 14, 15 and 16—corresponding period (相應期間), in relation to a constituent fund of a registered scheme, means the financial period of the constituent fund that coincides (whether wholly or partly) with a financial period of the registered scheme;FER means the fund expense ratio;financial period (財政期), in relation to a registered scheme, has the same meaning as in section 79 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A);inception date (成立日), in relation to a constituent fund of a registered scheme, means the first day on which the constituent fund is made available to members of the registered scheme for investment purpose;new constituent fund (新成分基金) means a constituent fund of a registered scheme the inception date of which is on or after the date on which section 80 of the 2021 Amendment Ordinance comes into operation;reference rate (參考行政費率)—see section 19X;reference ratio (參考開支比率)—see section 19W;relevant rate of administration fee (相關行政費率) means—(a) the relevant rate of administration fee determined under section 2 or 4 of Schedule 14 for a constituent fund of a registered scheme;

or(b) the relevant rate of administration fee determined under section 19ZB for a constituent fund of a registered scheme;second related financial period (第二相關財政期), in relation to a constituent fund of a registered scheme, means the financial period of the registered scheme that is immediately after the financial period covering the inception date of the constituent fund.(2) A constituent fund of a registered scheme begins to exist on the inception date.(3) If the units of a constituent fund of a registered scheme are divided into more than one class (fund class), this Division and Schedules 13, 14, 15 and 16 apply to a fund class of the constituent fund as if the fund class were a constituent fund of the registered scheme. Subdivision 2 Approved Trustee Not to Charge More Than Amount Payable to System Operator 19U. Approved trustee may charge fee for use of electronic MPF system and certain other services but must not charge more than amount payable to system operator (1) The approved trustee of a registered scheme may charge to a constituent fund of a registered scheme any amount payable, in relation to the constituent fund, by the approved trustee to the system operator of an electronic MPF system for the use of the system (use) or the provision to the trustee of any scheme administration services (provision), or both.(2) However, the aggregate amount that may be charged under subsection (1) in relation to a constituent fund of a registered scheme for a prescribed period relating to the fund must not exceed the total amount payable, in relation to the fund, by the approved trustee to the system operator for the use and provision for that period.(3) For a constituent fund of a registered scheme, each of the following periods is a prescribed period relating to the fund—(a) the period that begins on the material day and ends on the last day of the financial period of the registered scheme that covers the material day;(b) a financial period of the registered scheme that begins after the material day.(4) In this section—material day (關鍵日), in relation to a constituent fund of a registered scheme—(a) if the constituent fund is not a new constituent fund, means the day appointed under section 19ZE(1)(a) for the constituent fund; and(b) if the constituent fund is a new constituent fund, means the inception date of the constituent fund. Subdivision 3 Reference Ratio and Reference Rate 19V. Approved trustee’s duty to submit reference ratio and relevant rate of administration fee for constituent fund other than capital preservation fund (1) This section applies to a constituent fund of a registered scheme that is not a capital preservation fund.(2) The approved trustee of the registered scheme must, before the end of the specified 12-month period—(a) determine—(i) the reference ratio for the constituent fund; and(ii) the relevant rate of administration fee for the fund;(b) cause the reference ratio so determined to be audited by the auditor of the registered scheme; and(c) submit to the Authority—(i) the audited reference ratio; and(ii) the relevant rate of administration fee.(3) The approved trustee of a registered scheme is not required to comply with subsection (2)(a)(ii) and (c)(ii) if the relevant rate of administration fee is determined under section 19ZB for the constituent fund.(4) In this section—specified 12-month period (指明12個月期間)—(a) in relation to a constituent fund of a registered scheme to which section 19W(2) applies, means the 12-month period that begins immediately after 31 December 2021; and(b) in relation to a constituent fund of a registered scheme to which section 19W(3) applies—(i) if the constituent fund is not a new constituent fund, means whichever of the following periods ends later—(A) the 12-month period that begins immediately after 31 December 2021;(B) the 12-month period that begins immediately after the second related financial period; and(ii) if the constituent fund is a new constituent fund, means the 12-month period that begins immediately after the second related financial period. 19W. How to determine reference ratio for constituent fund (1) This section applies for the purpose of determining the reference ratio for a constituent fund of a registered scheme under section 19V.(2) If—(a) a financial period of a constituent fund of a registered scheme ends before 31 December 2020 (specified date); and(b) the constituent fund is in existence on the specified date,the reference ratio for the constituent fund is the FER determined, in accordance with Schedule 13, for the corresponding period of the constituent fund that coincides with the financial period of the registered scheme covering the specified date.(3) In any other case, the reference ratio for the constituent fund is the FER determined, in accordance with Schedule 13, for the corresponding period of the constituent fund that coincides with the second related financial period.(4) For the purpose of determining the FER for the corresponding period mentioned in subsection (2) or (3) (specified corresponding period)—(a) a reference in section 1 of Schedule 13 to a prescribed period is a reference to the financial period of the registered scheme to which the specified corresponding period relates; and(b) a reference in that Schedule to the relevant corresponding period is a reference to the specified corresponding period. 19X. How to determine reference rate for constituent fund (1) This section applies for the purpose of determining the reference rate for a constituent fund of a registered scheme.(2) For a constituent fund of a registered scheme to which section 19W(2) applies, the reference rate for the constituent fund is the relevant rate of administration fee determined under Part 1 of Schedule 14 for the fund.(3) For a constituent fund of a registered scheme to which section 19W(3) applies, the reference rate for the constituent fund is the relevant rate of administration fee determined under Part 2 of Schedule 14 for the fund.(4) Despite subsections (2) and (3), if the relevant rate of administration fee for a constituent fund of a registered scheme is determined under section 19ZB, the reference rate for the constituent fund is the rate determined under that section for the fund. Subdivision 4 Approved Trustee’s Duties in relation to FER for Relevant Corresponding Period of Constituent Fund 19Y. Approved trustee’s duty to determine FER for relevant corresponding period of constituent fund (1) This section applies to a constituent fund of a registered scheme.(2) The approved trustee of the registered scheme must, before the deadline for each prescribed period—(a) determine, in accordance with Schedule 13, the FER for the relevant corresponding period of the constituent fund;(b) cause the FER so determined to be audited by the auditor of the registered scheme; and(c) submit the audited FER to the Authority.(3) In this section—deadline (最後期限), in relation to a prescribed period relating to a constituent fund, means the end of the 6-month period that begins immediately after the prescribed period;material day (關鍵日)—(a) in relation to a constituent fund of a registered scheme that is not a new constituent fund, means the day appointed under section 19ZE(1)(b) for the constituent fund; and(b) in relation to a new constituent fund, means the day immediately after the second related financial period;prescribed period (訂明期間), in relation to a constituent fund of a registered scheme, means each of the following periods during which the constituent fund of the registered scheme is in existence (whether at all times or any time)—(a) the period that begins on the material day and ends on the last day of the financial period of the registered scheme that covers the material day;(b) a financial period of the registered scheme that begins after the material day;relevant corresponding period (相關相應期間), in relation to a prescribed period relating to a constituent fund of a registered scheme—(a) if the prescribed period is a financial period of the registered scheme, means the corresponding period, or the part of the corresponding period, of the constituent fund that coincides with the financial period of the registered scheme; and(b) in any other case, means the corresponding period, or the part of the corresponding period, of the constituent fund that coincides with the part of the scheme’s financial period that is the prescribed period. 19Z. Approved trustee’s duty to determine permitted percentage for constituent fund other than capital preservation fund (1) This section applies to a constituent fund of a registered scheme that is not a capital preservation fund.(2) The approved trustee of the registered scheme must, before the deadline for each prescribed period—(a) determine, in accordance with Schedule 15, the percentage permitted for the relevant corresponding period of the constituent fund; and(b) submit the percentage so determined to the Authority.(3) The submission under subsection (2)(b) must also specify—(a) whether the FER for the relevant corresponding period of the constituent fund (relevant FER) exceeds the permitted percentage; and(b) (if the relevant FER exceeds the permitted percentage) the amount calculated in accordance with Schedule 16.(4) In this section—deadline (最後期限), in relation to a constituent fund of a registered scheme and a prescribed period relating to the constituent fund, means the end of the 6-month period that begins immediately after the prescribed period;material day (關鍵日)—(a) in relation to a constituent fund of a registered scheme that is not a new constituent fund, means the day appointed under section 19ZE(1)(c) for the constituent fund; and(b) in relation to a new constituent fund, means the day immediately after the second related financial period;permitted percentage (獲准許百分比) means the percentage determined under subsection (2)(a);prescribed period (訂明期間), in relation to a constituent fund of a registered scheme, means each of the following periods during which the constituent fund of the registered scheme is in existence (whether at all times or any time)—(a) the period that begins on the material day and ends on the last day of the financial period of the registered scheme that covers the material day;(b) a financial period of the registered scheme that begins after the material day;relevant corresponding period (相關相應期間), in relation to a prescribed period relating to a constituent fund of a registered scheme—(a) if the prescribed period is a financial period of the registered scheme, means the corresponding period, or the part of the corresponding period, of the constituent fund that coincides with the financial period of the registered scheme; and(b) in any other case, means the corresponding period, or the part of the corresponding period, of the constituent fund that coincides with the part of the scheme’s financial period that is the prescribed period. 19ZA. Approved trustee’s duty to pay excess into relevant constituent fund (1) This section applies to a constituent fund of a registered scheme to which section 19Z applies if, in relation to a prescribed period to which the constituent fund relates, the FER for the relevant corresponding period of the constituent fund exceeds the permitted percentage (as defined by section 19Z(4)).(2) Within 10 specified working days after the deadline, the approved trustee of the registered scheme must pay the amount calculated in accordance with Schedule 16 (determined amount) into the constituent fund as income of the fund.(3) If the approval granted in respect of the constituent fund under section 21BB is cancelled before the approved trustee of the registered scheme has discharged the duty under subsection (2) in relation to the fund, the approved trustee must pay the determined amount into the registered scheme as income of the scheme.(4) In this section—deadline (最後期限) has the meaning given by section 19Z(4);prescribed period (訂明期間) has the meaning given by section 19Z(4);relevant corresponding period (相關相應期間) has the meaning given by section 19Z(4);specified working day (指明工作日) means a day other than any of the following days—(a) a Saturday;(b) a public holiday;(c) a gale warning day or black rainstorm warning day as defined by section 71(2) of Cap. 1. Subdivision 5 Powers of Authority to Determine Relevant Rate of Administration Fee and Require Approved Trustee to Determine FER for Specified Period of Constituent Fund 19ZB. Power of Authority to determine relevant rate of administration fee for constituent fund (1) Subject to subsection (2), the Authority may determine, in the way the Authority considers appropriate, the relevant rate of administration fee for a constituent fund of a registered scheme.(2) The Authority may exercise the power mentioned in subsection (1) in relation to a constituent fund of a registered scheme, if the Authority is satisfied that—(a) for the purpose of determining the relevant rate of administration fee under Schedule 14 for the constituent fund, the annual rate of the administration fee (or equivalent) of the constituent fund is not readily ascertainable by reference to the offering document of the registered scheme; and(b) the exercise of the power is justified.(3) In determining the relevant rate of administration fee for a constituent fund of a registered scheme under this section, regard must be had to the guidelines. 19ZC. Power of Authority to require approved trustee to determine FER for specified period of constituent fund (1) This section applies to a constituent fund of a registered scheme in relation to a financial period of the registered scheme.(2) If the Authority reasonably considers it necessary to do so, the Authority may require, by written notice, the approved trustee of the registered scheme to determine the FER for the corresponding period, or the part of the corresponding period, of a constituent fund of the registered scheme that coincides with the financial period of the scheme.(3) The approved trustee of the registered scheme must, before the end of the 6-month period after the date of the notice given to the approved trustee under subsection (2)—(a) determine, in accordance with Schedule 13, the FER for the period specified in the notice (specified period);(b) cause the FER so determined to be audited by the auditor of the registered scheme; and(c) submit the audited FER to the Authority.(4) For the purposes of subsection (3)(a)—(a) a reference in section 1 of Schedule 13 to a prescribed period is a reference to the financial period of the registered scheme, or the part of the financial period of the scheme, as the case requires, to which the specified period relates; and(b) a reference in that Schedule to the relevant corresponding period is a reference to the specified period. Subdivision 6 Authority’s Duties to Publish Specified Information and Fee Level Charged by System Operator of Electronic MPF System 19ZD. Authority’s duties to publish specified information and general fee level charged by system operator (1) As soon as practicable after having received any specified information in relation to a constituent fund of a registered scheme from the approved trustee of the registered scheme, the Authority must publish, in the manner the Authority considers appropriate, the information.(2) The Authority is not required to comply with subsection (1) in relation to the information described in paragraph (b) of the definition of specified information in subsection (5) if—(a) the information is received by the Authority after the Authority has determined the relevant rate of administration fee for the constituent fund; or(b) after having received the information from the approved trustee of the registered scheme, the Authority decides to exercise the power under section 19ZB in relation to the constituent fund.(3) The Authority must also publish, in the manner the Authority considers appropriate—(a) the relevant rate of administration fee determined under section 19ZB for a constituent fund of a registered scheme; and(b) the general fee level charged by the system operator of an electronic MPF system for the use of the system or the provision by the system operator of any scheme administration services, or both.(4) The Authority must publish the information mentioned in subsection (3) as soon as practicable after the information is available.(5) In this section—specified information (指明資料) means—(a) the audited reference ratio mentioned in section 19V(2)(c)(i);(b) the relevant rate of administration fee mentioned in section 19V(2)(c)(ii);(c) the audited FER mentioned in section 19Y(2)(c);(d) the percentage mentioned in section 19Z(2)(b); or(e) the audited FER mentioned in section 19ZC(3)(c). Subdivision 7 Powers of Secretary 19ZE. Power of Secretary to appoint days for purposes of sections 19U, 19Y and 19Z (1) The Secretary may, by notice published in the Gazette, appoint a day for the purposes of paragraph (a) of the definition of material day in any of the following provisions—(a) section 19U(4);(b) section 19Y(3);(c) section 19Z(4).(2) Different days may be appointed under subsection (1)(a), (b) and (c)—(a) for different constituent funds of a registered scheme; and(b) for constituent funds of different registered schemes. 19ZF. Power of Secretary to amend Schedules The Secretary may, by notice published in the Gazette, amend Schedules 12, 13, 14, 15 and 16. Division 8 Miscellaneous Provisions 19ZG. System operator to provide administrative support to Authority (1) If the Authority so requires, the system operator of an electronic MPF system must provide administrative support to the Authority to assist the Authority in performing the Authority’s functions.(2) The Authority may pay to the system operator an amount that, in the Authority’s opinion, represents the expenditure or cost incurred, or likely to be incurred, by the system operator in providing the administrative support.(3) A payment under subsection (2) is to be paid from the MPFA Administration Account under section 6M. 19ZH. Mandatory use of electronic MPF system etc. does not prevent approved trustees from seeking remedies from system operator The use by the approved trustee of a registered scheme of the electronic MPF system, or the scheme administration services provided by the system operator of the system, because of section 19M does not prevent the trustee from seeking any reasonable remedies from the system operator in respect of any liability of the trustee that is attributable to the system operator. Part 4 Mandatory Provident Fund Schemes (Format changes—E.R. 1 of 2013) 20. Approval of trustees (1) A person may apply to the Authority for approval as a trustee for the purposes of this Ordinance.(2) 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.(3) A natural person is not eligible to make an application under this section if the person—(a) is a public officer; or(b) is, in accordance with the Mental Health Ordinance (Cap. 136), found by the Court to be of unsound mind and incapable of managing himself or herself and his or her affairs; or(c) is an undischarged bankrupt or has entered into a composition with the person’s creditors without paying the creditors in full.(4) An application must—(a) be in a form approved by the Authority; and (b) contain such information, and be accompanied by such documents, as may be prescribed by the guidelines; and(c) be accompanied by an application fee of such amount as may be prescribed by the regulations.(5) 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.(6) The Authority may approve an application only if satisfied that the applicant—(a) is likely to be able to perform, in a proper manner, the duties that an approved trustee is required by this Ordinance to perform in relation to registered schemes; and(b) has given an undertaking to the Authority by deed, or by a document of like effect acceptable to the Authority, that the applicant will not, in relation to a registered scheme of which the applicant becomes the approved trustee, refuse—(i) an application for membership of the scheme made by or on behalf of a relevant employee of a participating employer, or by or on behalf of a self-employed person who is 18 years of age or over and below retirement age, who—(A) is not precluded by a provision of this Ordinance from being a member of the scheme; and(B) is required by this Ordinance to be a member of a registered scheme;(ii) an application for participation in the scheme made by or on behalf of an employer whose employee—(A) is not precluded by a provision of this Ordinance from being a member of the scheme; and(B) is required by this Ordinance to be a member of a registered scheme; or(iii) an application for membership of the scheme made only for the purpose of maintaining a personal account within the scheme by a person who— (Amended 11 of 2009 s. 6)(A) is not precluded by a provision of this Ordinance from being a member of the scheme; and(B) is required by this Ordinance to be a member of a registered scheme; and (Replaced 1 of 2008 s. 15)(c) complies with such requirements as are prescribed by the regulations.(7) The regulations referred to in subsection (6)(c) may include requirements as to the following matters—(a) the qualifications that an applicant must have;(b) the financial resources that an applicant must have (including capital adequacy);(c) in the case of an application by a company—(i) the membership of the company; and (ii) the objects of the company as set out in its constitution; and(iii) the suitability of the company’s controllers (including their reputation and character and their knowledge of, experience in and qualifications for administering provident fund schemes); and(iv) in the case of a company that is a non-Hong Kong company, requirements that the place where the company is incorporated has in force laws that provide for the establishment and operation of corporations and trusts and that there must be in that place an effective regulatory authority to supervise those corporations and trusts and to enforce those laws; (Amended 30 of 2004 s. 3)(d) in the case of an application by a natural person—(i) the suitability of the applicant to be an approved trustee (including the applicant’s reputation and character and the applicant’s knowledge of, experience in and qualifications for administering provident fund schemes); and(ii) the need to provide a performance guarantee and the contents of such a guarantee.(8) 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.(9) 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.(10) 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. (11) 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.(12) Where the Authority—(a) has decided that it is appropriate to—(i) amend any conditions imposed under subsection (8) or this subsection with respect to the conduct of an approved trustee’s business; or(ii) impose conditions with respect to the conduct of an approved trustee’s business; and(b) has given to the approved trustee—(i) not less than 30 days’ advance notice of its decision, specifying its grounds; and(ii) an opportunity to make written representations as to why the conditions should not be amended or imposed, then the Authority may, by written notice served on the approved trustee—(c) amend any conditions imposed under subsection (8) or this subsection with respect to the conduct of the approved trustee’s business; or(d) impose conditions with respect to the conduct of the approved trustee’s business. (Added 2 of 2002 s. 10)(13) The Authority may waive a person’s compliance with a condition imposed under subsection (8) or (12)—(a) in a particular case; and(b) where the person satisfies the Authority that such compliance is not, or has not been, reasonably practicable in all the circumstances of that case. (Added 2 of 2002 s. 10)(Replaced 4 of 1998 s. 2) 20A. Suspension of approval of approved trustee (1) The Authority may suspend the approval of an approved trustee if it reasonably suspects that—(a) the trustee has failed to comply with a condition to which the approval is subject; or(b) the trustee is for any reason unable to carry out any of the duties of an approved trustee in relation to a registered scheme; or(c) if the regulations specify requirements that are to be complied with as to the financial resources (including capital adequacy) or the qualifications of approved trustees, the trustee is not, or is no longer, able to satisfy those requirements; or(d) the trustee has failed to comply with section 22; or (Amended 18 of 2008 s. 27)(e) the trustee has failed to comply with section 42B(6) or (7) of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A). (Added 18 of 2008 s. 27)(2) 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.(3) 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.(4) 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.(Added 4 of 1998 s. 2. Amended E.R. 1 of 2013) 20B. Revocation of approval of approved trustee (1) The Authority may revoke the approval of an approved trustee on being satisfied on reasonable grounds that—(a) the trustee has failed to comply with a condition to which the approval is subject; or(b) the trustee is for any reason unable to carry out any of the duties of an approved trustee in relation to a registered scheme; or(c) if the regulations specify requirements that are to be complied with as to the financial resources (including capital adequacy) or the qualifications of approved trustees, the trustee is not, or is no longer, able to satisfy those requirements; or(d) the trustee has failed to comply with— (Amended 18 of 2008 s. 28; 9 of 2016 s. 4)(i) section 22;(ii) section 27(2A);(iii) section 34DB(1)(a), (b), (c) or (d);(iv) (Repealed 40 of 2021 s. 20)(v) section 34DD(1) or (4);(vi) section 34DH(1) or (2);(vii) section 34DI(1) or (2);(viii) section 34DJ(2), (3), (4) or (5);(ix) section 34DK(2); or (x) section 34DM; or (Amended 9 of 2016 s. 4)(e) the trustee has failed to comply with section 42B(6) or (7) of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A). (Added 18 of 2008 s. 28)(2) 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.(3) 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.(4) An approved trustee’s approval is, by operation of this subsection, revoked—(a) if the trustee is a company and—(i) the Court makes an order for the winding up of the company; or(ii) the company is dissolved otherwise than in consequence of such an order; or(b) if the trustee is a natural person, the person—(i) dies; or(ii) is, in accordance with the Mental Health Ordinance (Cap. 136), found by the Court to be of unsound mind and incapable of managing himself or herself and his or her affairs; or(iii) is adjudicated bankrupt or has entered into a composition with the person’s creditors without paying the creditors in full.(Added 4 of 1998 s. 2) 20C. Register of approved trustees to be kept (1) 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.(2) The register is to be kept at the head office of the Authority in Hong Kong.(3) Members of the public are entitled, without charge, to inspect the register during the ordinary business hours of the Authority.(Added 4 of 1998 s. 2) 21. Application for registration as employer sponsored scheme or master trust scheme (1) An application for the registration of a provident fund scheme as an employer sponsored scheme may be made to the Authority only—(a) by a company that is an approved trustee or has applied for approval as such under section 20; or(b) by 2 or more natural persons who are approved trustees, or have applied for approval under that section, and at least 1 of whom must be an independent trustee; or(c) by such a company and 1 or more such natural persons.(2) 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.(3) 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.(4) An application must—(a) specify particulars of the scheme sought to be registered and contain such other information (if any) as is prescribed in guidelines issued under section 6H; and(b) be accompanied—(i) by a copy of the proposed rules that are to govern the scheme and by such other documents (if any) as are prescribed in guidelines issued under section 6H; and(ii) by an application fee of such amount as is prescribed by the regulations.(5) 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.(6) As soon as practicable after receiving an application for the registration of a provident fund scheme, the Authority must consider the application.(7) The Authority may register a scheme only if satisfied that the scheme—(a) complies with, or will if registered comply with, such requirements and standards as are prescribed by the regulations referred to in section 21C; and(b) will be governed by the law of Hong Kong.(8) 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—(a) in the case of an application to register a scheme as an employer sponsored scheme, an undertaking not to refuse—(i) an application for membership of the scheme made by or on behalf of a relevant employee of the participating employer; or(ii) an application for participation in the scheme made by or on behalf of an employer; and(b) in the case of an application to register a scheme as a master trust scheme, an undertaking not to refuse—(i) an application for membership of the scheme made by or on behalf of—(A) any relevant employee; or(B) any self-employed person who is 18 years of age or over and below retirement age; or(ii) an application for participation in the scheme made by or on behalf of an employer; or(iii) an application for membership of the scheme made by a person only for the purpose of maintaining a personal account within the scheme. (Replaced 1 of 2008 s. 16. Amended 11 of 2009 s. 8)(8A) 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)(9) 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.(10) 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.(11) 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)(12) Where the Authority—(a) has decided that it is appropriate to—(i) amend any conditions imposed under subsection (8A) or this subsection with respect to the administration or marketing of a registered scheme; or(ii) impose conditions with respect to the administration or marketing of a registered scheme; and(b) has given to the approved trustee—(i) not less than 30 days’ advance notice of its decision, specifying its grounds; and(ii) an opportunity to make written representations as to why the conditions should not be amended or imposed, then the Authority may, by written notice served on the approved trustee—(c) amend any conditions imposed under subsection (8A) or this subsection with respect to the administration or marketing of the scheme; or(d) impose conditions with respect to the administration or marketing of the scheme. (Added 2 of 2002 s. 11)(13) The Authority may waive a person’s compliance with a condition imposed under subsection (8A) or (12)—(a) in a particular case; and(b) where the person satisfies the Authority that such compliance is not, or has not been, reasonably practicable in all the circumstances of that case. (Added 2 of 2002 s. 11)(14) 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)(Replaced 4 of 1998 s. 2) 21A. Applications for registration of schemes as industry schemes (1) The Authority may invite approved trustees that are companies to lodge with it applications to register a provident fund scheme as an industry scheme.(2) 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.(2A) 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)(3) The invitations sent or given to the approved trustees must be in writing and be identical in all material respects and must specify—(a) the criteria on which the consideration of applications will be based; and(b) the date by which applications must be lodged with the Authority.(4) An application by an approved trustee in response to an invitation sent or delivered under subsection (1) must—(a) specify particulars of the scheme sought to be registered and contain such other information as is specified in the invitation; and (b) be accompanied—(i) by a copy of the proposed rules that are to govern the scheme and by such other documents as are specified in the invitation; and(ii) by an application fee of such amount as is prescribed by the regulations; and(c) be made within the period specified in the invitation.(5) 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.(6) As soon as practicable after the date specified in the invitations sent or delivered under subsection (1), the Authority must—(a) consider the applications made in response to the invitation; and(b) from among the applicants, select the applicant that best satisfies the criteria specified in the invitation; and (c) register the scheme for the industry concerned and the successful applicant as the approved trustee of the scheme.(7) The Authority may register a scheme as an industry scheme only if satisfied that the scheme—(a) will, when registered, comply with such requirements and standards as are prescribed by the regulations referred to in section 21C; and(b) will be governed by the law of Hong Kong.(8) 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—(a) an application for membership of the scheme made by or on behalf of—(i) any relevant employee who is employed in the industry concerned; or(ii) any self-employed person who is 18 years of age or over and below retirement age and engaged in the industry concerned; or(b) an application for participation in the scheme made by or on behalf of an employer engaged in the industry concerned; or(c) an application for membership of the scheme made by a person only for the purpose of maintaining a personal account within the scheme. (Replaced 11 of 2009 s. 9)(8A) 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)(9) 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.(10) 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.(11) On registering a provident fund scheme as an industry scheme, the Authority must—(a) publish in the Gazette a notice of that registration containing such particulars as are prescribed by the regulations; and(b) 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. (Amended 2 of 2002 s. 12) The certificate must specify that the scheme is an industry scheme.(12) Where the Authority—(a) has decided that it is appropriate to—(i) amend any conditions imposed under subsection (8A) or this subsection with respect to the administration or marketing of a registered scheme; or(ii) impose conditions with respect to the administration or marketing of a registered scheme; and(b) has given to the approved trustee—(i) not less than 30 days’ advance notice of its decision, specifying its grounds; and(ii) an opportunity to make written representations as to why the conditions should not be amended or imposed, then the Authority may, by written notice served on the approved trustee—(c) amend any conditions imposed under subsection (8A) or this subsection with respect to the administration or marketing of the scheme; or(d) impose conditions with respect to the administration or marketing of the scheme. (Added 2 of 2002 s. 12)(13) The Authority may waive a person’s compliance with a condition imposed under subsection (8A) or (12)—(a) in a particular case; and(b) where the person satisfies the Authority that such compliance is not, or has not been, reasonably practicable in all the circumstances of that case. (Added 2 of 2002 s. 12)(14) 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)(Added 4 of 1998 s. 2) 21B. Register of schemes to be kept (1) 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.(2) The register is to be kept at the head office of the Authority in Hong Kong.(3) Members of the public are entitled, without charge, to inspect the register during the ordinary business hours of the Authority.(Added 4 of 1998 s. 2) 21BA. Constituent funds of registered schemes to be approved (1) 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.(2) An approved trustee who, without reasonable excuse, fails to comply with subsection (1) commits an offence and is liable—(a) on conviction on indictment to a fine of $5,000,000 and to imprisonment for 7 years and, in the case of a continuing offence, to a further fine of $100,000 for each day on which the offence is continued; or(b) on summary conviction to a fine of $500,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for each day on which the offence is continued.(Added 1 of 2015 s. 7) 21BB. Application for approval and cancellation of approval of constituent funds of registered schemes (1) The Authority may on application made by an approved trustee of a registered scheme—(a) approve a constituent fund of the scheme; or(b) cancel the approval granted in respect of a constituent fund of the scheme.(2) An application for approval or cancellation must—(a) be in a form specified or approved by the Authority; and(b) contain the information, and be accompanied by the documents, specified for the purposes of this section in the guidelines.(3) An application for approval must include a statement of investment policy that sets out—(a) the investment objectives of the fund;(b) the policy as to the kinds of securities and other assets in which the fund may be invested;(c) the policy as to the balance between different kinds of securities and other assets of the fund;(d) the policy regarding the acquisition, holding and disposal of financial futures contracts, and of financial option contracts, for the purposes of the fund; and(e) the risks inherent in implementing the policies referred to in paragraphs (b), (c) and (d), and the return expected to result from giving effect to those policies.(4) 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.(5) 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.(6) 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.(7) 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.(8) If the Authority rejects an application for approval or cancellation, it must—(a) give written notice of the rejection to the applicant; and(b) include in the notice a statement setting out the reasons for the rejection.(9) 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.(Added 1 of 2015 s. 7) 21C. Regulations with respect to registered schemes (1) Regulations may be made under section 46 as to the requirements and standards that must be complied with in relation to—(a) registered schemes; or(b) applications for the registration of provident fund schemes.(2) Those regulations may include requirements or standards as to the following matters—(a) the vesting in scheme members of accrued benefits;(b) the acceptance by approved trustees of mandatory contributions, voluntary contributions and special contributions under Part 3A in respect of scheme members; (Amended 30 of 2008 s. 5)(c) the preservation of the accrued benefits of scheme members;(d) the payment of accrued benefits to or in respect of scheme members;(e) the transfer of accrued benefits from one scheme to another or from one account in a scheme to another account in the same scheme;(f) the investment of accrued benefits;(g) (Repealed 18 of 2008 s. 29)(h) the keeping of records (including accounting records) relating to registered schemes;(i) the provision of information about the relevant scheme to scheme members;(j) the preparation and publication of financial and other reports relating to schemes;(k) the provision of information and documents to the Authority relating to schemes;(l) the provision of information to other persons in relation to schemes;(m) the financial viability of schemes (including their funding and solvency).(Added 4 of 1998 s. 2. Amended E.R. 1 of 2013) 22. Approved trustee to comply with prescribed requirements and standards The approved trustee of a registered scheme must, as far as reasonably practicable, ensure that the requirements and standards prescribed by the regulations referred to in section 21C are complied with in relation to the scheme.(Replaced 4 of 1998 s. 2) 22A.

Annual statements to be lodged with the Authority (1) 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.(2) The statement must include or be accompanied by the following—(a) the name and business address of the approved trustee;(b) such other information or documents as are prescribed by the regulations for the purposes of this section.(Added 4 of 1998 s. 2) 22B. Annual registration fee to be paid to the Authority (1) 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.(2) 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.(3) 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.(4) 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.(5) 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.(Added 4 of 1998 s. 2) 22C. Approved trustee must not charge certain fees The approved trustee of a registered scheme must ensure that no fee representing an annual registration fee payable by the trustee under section 22B is charged, whether in whole or in part, to—(a) the scheme;(b) a constituent fund of the scheme; or(c) a member of the scheme.(Added 16 of 2020 s. 9) 23. Residual Provident Fund Scheme (1) 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)(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—(a) (i) in the case of the employer, declares in writing to the Authority that he has not, through his own efforts or otherwise, been able to comply with the requirements of section 7(1); or(ii) in the case of the self-employed person, declares in writing to the Authority that he has not, through his own efforts or otherwise, been able to become a member of a registered scheme as required under section 7C; (Amended 4 of 1998 s. 2)(b) authorizes the Authority to assist him in obtaining access to a registered scheme for the purpose of compliance with the requirements referred to in paragraph (a), as applicable;(c) provides to the Authority all information and assistance as may reasonably be required by the Authority for that purpose, and 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).(3) 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—(a) to facilitate portability or transferability of accrued benefits to, from or between registered schemes;(b) to provide for any unclaimed accrued benefits; and(c) to achieve any other purposes of this Ordinance.(4) 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.(5) In this section employer (僱主) includes a prospective employer, and self-employed person (自僱人士) includes a prospective self-employed person. 24. Trustee’s covenants in respect of governing rules Where the governing rules of a registered scheme do not expressly contain covenants by the approved trustee of the registered scheme to the same, or substantially the same, effect as the implied covenants specified in Schedule 5 as to the discharge of the fiduciary duties of approved trustees, the performance or exercise of their functions in relation to registered schemes, those governing rules shall apply as if the implied covenants in that Schedule were expressly contained therein and any contrary provision in those governing rules purporting otherwise is void.(Amended 4 of 1998 s. 2) 25. Duties of officers of corporate trustees If the approved trustee of a registered scheme is a company, each of the officers of the company has a duty to exercise a degree of care and diligence sufficient to ensure that, as far as reasonably practicable, the company—(a) complies with all requirements and standards prescribed by the regulations referred to in section 21C; and(b) fulfils the trustee’s covenants (whether they are contained in the rules governing the scheme expressly or are implied because of section 24); and (c) performs all duties imposed on the trustee in accordance with section 27.(Replaced 4 of 1998 s. 2) 26. Governing rules not to exempt approved trustee from liability for breach of trust etc. A provision of the governing rules of a registered scheme is void in so far as it purports to exempt the approved trustee of the scheme from, or to indemnify that trustee against—(a) liability for breach of trust for failure to act honestly as regards a matter concerning the scheme; or(b) liability for breach of trust for an intentional or reckless failure to exercise, as regards a matter concerning the scheme, the degree of care and diligence that is to be reasonably expected of a trustee who is exercising functions in relation to a trust; or(c) liability for a fine or penalty imposed by or under the law,or purports to limit any such liability.(Replaced 4 of 1998 s. 2) 27. Duties and powers of approved trustees of registered schemes (1) An approved trustee shall comply with such duties in relation to a registered scheme as may be imposed by the regulations. (2) The duties that may be imposed by the regulations include (but are not limited to) the following—(a) the duty to collect or receive mandatory contributions;(b) the duty to exercise sufficient and adequate control over the investment of accrued benefits in relation to a registered scheme, including the control and supervision of persons responsible for such investment;(c) the duty to make arrangements for receiving and dealing expeditiously with inquiries and complaints by scheme members in relation to a registered scheme;(d) the duty to keep and retain records in respect of scheme members in relation to a registered scheme;(e) the duty to give to the Authority any information or document in the approved trustee’s possession or under his control as may be required by the Authority;(f) the duty to report events of a significant nature to the Authority in relation to a registered scheme;(g) the duty to keep accounting records which record and explain the transactions and financial position of a registered scheme at a current date;(h) the duty to prepare at regular intervals financial statements in respect of a registered scheme;(i) in the case of an approved trustee of a registered scheme that is a company, the duty of each officer of the company to make such disclosures affecting the scheme or that could affect the scheme, as are prescribed by those regulations; (Added 4 of 1998 s. 2)(j) in the case of an approved trustee of a registered scheme who is a natural person, the duty of the person to make such disclosures affecting the scheme, or that could affect the scheme, as are prescribed by those regulations; (Added 4 of 1998 s. 2)(k) the duty of an approved trustee to keep a register of disclosures referred to in paragraph (i) or (j), as appropriate. (Added 4 of 1998 s. 2)(2A) 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)(3) 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)(4) 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—(a) from responsibility to ensure that the duty is performed in relation to the scheme; or(b) from the consequences of any failure by the service provider to perform that duty. (Added 4 of 1998 s. 2)(Amended 4 of 1998 s. 2) 28. Authority may publish guidelines on forbidden investment practices in relation to registered schemes (1) 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)(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.(3) (Repealed 4 of 1998 s. 2) 29. Restricted investments (1) The approved trustee of a registered scheme may invest the accrued benefits of scheme members in restricted investments—(a) only in so far as approved trustees are not prohibited by the regulations from investing those benefits in those investments; or (b) if approved trustees are not so prohibited, only in accordance with such limitations and conditions as are prescribed by the regulations. (Replaced 4 of 1998 s. 2)(2) In this section restricted investments (受限制投資項目) means any investments in respect of an employer (or an associate of an employer) who is employing scheme members comprising—(a) loans to that employer or associate, as the case may be, other than loans made by way of deposits with authorized institutions within the meaning of the Banking Ordinance (Cap. 155);(b) shares or other securities of, or issued by, that employer or associate, as the case may be. 30. Report of auditor (1) 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—(a) to arrange for an auditor (who must be approved by the Authority) to investigate whether or not any such circumstances exist or have existed and to investigate any other matters relating to the trustee or the scheme that may be specified in the notice and to prepare for the trustee a report on the investigation; and(b) to provide a copy of the report to the Authority within the period specified in the notice. (Replaced 9 of 2016 s. 6)(1A) 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)(a) to arrange for an auditor (who must be approved by the Authority)—(i) to investigate whether or not the trustee has failed to comply with the provision;(ii) to investigate any other matters relating to the trustee or the scheme that may be specified in the notice; and(iii) to prepare for the trustee a report on the investigation; and(b) to provide a copy of the report to the Authority within the period specified in the notice. (Added 9 of 2016 s. 6)(2) The Authority may publish the report or supply the report to the scheme member referred to in subsection (1) or (1A).(3) 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.(Amended 9 of 2016 s. 6) 30A. General power of inspection (1) An authorized person may, at any reasonable time during ordinary business hours, enter premises at which the person reasonably believes that—(a) the affairs of a registered scheme are being conducted; or(b) any document relating to the scheme is being kept, 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)(2) Subsection (1) does not authorize an authorized person to enter premises that are being used as a private dwelling.(3) An authorized person may enter premises under this section without giving notice and without the consent of the occupier—(a) if entry is required urgently and the Authority has expressly authorized entry; or(b) if giving notice or obtaining the consent of the occupier would defeat the purpose for which it is intended to exercise the power of entry. In all other circumstances, an authorized person must give the occupier of the premises reasonable notice of the intention to enter the premises.(4) An authorized person who enters premises under this section may do any of the following—(a) inspect the premises and examine any record found on the premises that the person reasonably believes relates to a registered scheme;(b) take photographs of the premises or of any thing found on the premises that the authorized person reasonably believes relates to the scheme;(c) require the occupier of the premises or any person who is apparently an employee or agent of that occupier to provide the authorized person with such assistance and facilities as is or are reasonably necessary to enable the authorized person to exercise or perform that person’s functions;(d) require any person on the premises to produce for inspection records under the control of the person relating to the scheme and, if any such records are not legible or are not in the English or Chinese language, to produce a statement in writing in English or Chinese setting out the contents of those records;(e) make copies of all or any part of any such records or statements.(5) A person may exercise a power conferred by this section only if the person—(a) is in possession of a warrant of authority issued by the Authority; and(b) on being requested to do so, produces that warrant 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) 31. Information and documents (1) 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.(2) 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.(Amended 4 of 1998 s. 2) 32. Investigation (1) This section applies if the Authority reasonably believes that— (Amended 40 of 2021 s. 22)(a) a person has contravened this Ordinance (except sections 34L, 34ZL and 34ZM), a requirement imposed under this Ordinance, or a condition imposed under this Ordinance (except section 34X), with respect to a registered scheme; or (Amended 16 of 2012 s. 12)(b) circumstances may exist that could prejudice the interests of the scheme members of a registered scheme; or(c) the approved trustee of a registered scheme is failing, or has failed, to fulfil the trustee’s duties with respect to the scheme. (Replaced 4 of 1998 s. 2. Amended 40 of 2021 s. 22)(1A) (Repealed 40 of 2021 s. 22)(2) The Authority may appoint one or more competent persons to be inspectors to conduct an investigation under this section.(3) For the purpose of conducting an investigation, an inspector may do any of the following—(a) enter premises (other than premises referred to in subsection (3A)) if the inspector reasonably believes that it is necessary to enter those premises because they may have some connection with a registered scheme;(b) inspect those premises and make copies of records found on the premises that the inspector reasonably believes may relate to the financial or other affairs of the scheme;(c) require the trustee of the scheme or any other person who the inspector reasonably believes has custody of records relating to the affairs of the trustee or the scheme to produce the records to the inspector;(d) require the trustee or any other person who the inspector reasonably believes has information concerning the affairs of the scheme—(i) to give all reasonable assistance to the inspector in connection with the investigation; and(ii) to appear before the inspector at a time and place specified by the inspector in writing to be examined with respect to the matters relating to the affairs of the trustee or the scheme and to answer questions that the inspector may put to the trustee or other person. (Replaced 4 of 1998 s. 2)(3A) 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)(3B) 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—(a) that the premises may have some connection with a particular registered scheme; and(b) that there may be on the premises records relating to the affairs of the trustee or the scheme. (Added 4 of 1998 s. 2)(3C) 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)(4) 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.(5) 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. (6) 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.(7) 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.(8) 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.(9) 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—(a) provide a copy of the report to any person who appears to the Authority to have an interest in the scheme;(b) publish the report or any part of it in such publication as it considers appropriate. (Replaced 4 of 1998 s. 2)(10) Nothing in this section requires disclosure to an inspector appointed under subsection (2)—(a) by a solicitor of any privileged communication made to him in that capacity, except as respects the name and address of his client; or(b) by an authorized institution within the meaning of the Banking Ordinance (Cap. 155) relating to the affairs of a customer unless—(i) that customer is a person who the inspector reasonably believes may be able to give information relevant to the investigation; and(ii) the Authority is satisfied that the disclosure is necessary for the purposes of the investigation and certifies in writing that this is the case.(Amended 4 of 1998 s. 2) 33. Suspension and termination of approved trustee’s administration of registered scheme (1) 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) that the trustee’s conduct with respect to the scheme is having, has had or could have an adverse effect on the financial soundness of the scheme or the interests of the scheme members; (Amended 9 of 2016 s. 7)(b) that the trustee is engaging, or has engaged, in a forbidden investment practice specified in guidelines published under section 28; or (Amended 9 of 2016 s. 7)(c) that the trustee has failed to comply with—(i) section 27(2A);(ii) section 34DB(1)(a), (b), (c) or (d);(iii) (Repealed 40 of 2021 s. 23)(iv) section 34DD(1) or (4);(v) section 34DH(1) or (2);(vi) section 34DI(1) or (2);(vii) section 34DJ(2), (3), (4) or (5);(viii) section 34DK(2); or(ix) section 34DM. (Added 9 of 2016 s. 7)(2) A notice under subsection (1) must specify—(a) the period for which the approved trustee’s administration of the scheme is to be suspended; and (b) the grounds for the suspension.(3) 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.(4) 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.(5) 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.(6) 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—(a) that the trustee’s conduct with respect to the scheme is having, has had or could have an adverse effect on the financial soundness of the scheme or the interests of the scheme members; (Amended 9 of 2016 s. 7)(b) that the trustee is engaging or has engaged in a forbidden investment practice specified in guidelines published under section 28; or (Amended 9 of 2016 s. 7)(c) that the trustee has failed to comply with—(i) section 27(2A);(ii) section 34DB(1)(a), (b), (c) or (d);(iii) (Repealed 40 of 2021 s. 23)(iv) section 34DD(1) or (4);(v) section 34DH(1) or (2);(vi) section 34DI(1) or (2);(vii) section 34DJ(2), (3), (4) or (5);(viii) section 34DK(2); or(ix) section 34DM. (Added 9 of 2016 s. 7)(7) An approved trustee’s administration of a registered scheme is also terminated if the trustee’s approval is revoked under section 20B.(8) An approved trustee’s administration of a registered scheme is also suspended if the trustee’s approval is suspended under section 20A.(9) 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.(Replaced 4 of 1998 s. 2. Amended E.R. 1 of 2013) 33A. Authority to appoint administrator on suspension or termination of trustee’s administration (1) If—(a) the administration of an employer sponsored scheme by a trustee is suspended or terminated; and(b) after the suspension or termination—(i) there are no other trustees of the scheme; or(ii) there is only one remaining trustee (not being a company); or(iii) if each of the remaining trustees is a natural person, there is no remaining independent trustee, 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.(2) A person appointed under subsection (1) must, as far as possible, be an approved trustee.(3) 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.(4) If—(a) the administration of a master trust scheme or an industry scheme by a trustee is suspended or terminated; and(b) there are no other trustees of the scheme, 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.(5) A person appointed under subsection (4) must, as far as possible, be an approved trustee that is a company.(6) 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.(7) 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.(8) The Authority may terminate the appointment of an administrator after giving reasonable notice to the administrator and may—(a) if the approved trustee’s administration of the scheme is suspended and the suspension has not ended; or(b) if that trustee’s administration of the scheme is terminated, in accordance with this section appoint another administrator to administer the scheme.(9) The administrator of a registered scheme may resign by giving to the Authority not less than 30 days’ written notice of the resignation.(10) 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.(Added 4 of 1998 s. 2) 33B. Authority to appoint replacement trustee on termination of approved trustee’s administration (1) If—(a) the administration of an employer sponsored scheme by a trustee has been terminated; and(b) after the termination—(i) there are no other trustees of the scheme; or(ii) there is only one remaining trustee (not being a company); or(iii) if each of the remaining trustees is a natural person, there is no remaining independent trustee, 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.(2) A person appointed under subsection (1) must be an approved trustee.(3) If—(a) the administration of a master trust scheme or an industry scheme by a trustee has been terminated; and(b) there are no other trustees of the scheme, the Authority must take all reasonable steps to appoint another approved trustee to replace the trustee whose administration of the scheme was terminated.(4) A person appointed under subsection (3) must be an approved trustee that is a company.(5) 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.(6) 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.(Added 4 of 1998 s. 2) 34. Voluntary winding up of employer sponsored scheme (1) 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—(a) there are no longer any scheme members or, if there are any such members, the interests of those members are adequately protected and, if those members continue to have accrued benefits in the scheme, satisfactory arrangements have been made for the transfer of those benefits to another registered scheme; and(b) all existing liabilities relating to the scheme (including obligations to scheme members) can be met from the scheme assets.(2) 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.(3) An application must—(a) be in a form approved by the Authority; and(b) contain such information, and be accompanied by such documents, as are prescribed by the regulations; and(c) be accompanied by an application fee of such amount (if any) as is so prescribed.(4) 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.(5) 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.(6) 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. (7) 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.(8) 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.(9) A liquidator appointed under subsection (8) must have such qualifications as are specified in the regulations.(10) 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.(11) 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.(12) 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.(Replaced 4 of 1998 s. 2) 34A. Winding up of registered schemes otherwise than in accordance with section 34 or 34D (1) 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)(2) In winding up a registered scheme, the Court must satisfy itself—(a) that the interests of scheme members are adequately protected; and(b) if those members continue to have accrued benefits in the scheme, that satisfactory arrangements are made for the transfer of those benefits to another registered scheme.(3) 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.(4) A liquidator appointed under subsection (3) must have such qualifications as are specified in the regulations.(5) 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.(6) 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.(7) 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)(8) Winding up rules made for the purposes of this section are to be judicially noticed.(9) 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.(10) In this section, liquidator (清盤人) includes a provisional liquidator.(Added 4 of 1998 s. 2) 34B. Authority may consent to restructuring of registered schemes (Replaced 1 of 2008 s. 46)(1) 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)(2) (Repealed 29 of 2002 s. 9)(3) An application must—(a) be in a form approved by the Authority; and(b) contain such information, and be accompanied by such documents, as are prescribed by the rules; and(c) be accompanied by an application fee of such amount as is so prescribed.(4) 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.(5) 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—(a) that the interests of the members of the scheme or those schemes, as the case may be, will be adequately protected and that, if the restructuring is consented to, their accrued benefits will be transferred to the transferee scheme or schemes, as the case may be, as appropriate; and(b) that the transferee scheme or schemes, as the case may be, will be governed by the law of Hong Kong; and(c) that the transferee scheme or schemes, as the case may be, complies or comply with, or will if the restructuring is consented to, comply with, such requirements and standards as are prescribed by the regulations referred to in section 21C. (Replaced 29 of 2002 s. 9)(6) 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)(7) 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.(8) 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)(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)(10) 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)(11) 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)(Added 4 of 1998 s. 2. Amended E.R. 1 of 2013) 34C. (Repealed 29 of 2002 s. 10) 34D. Cancellation of registration of registered scheme which has no scheme members, etc. (1) 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.(2) An application must—(a) be in a form approved by the Authority; and(b) contain such information, and be accompanied by such documents, as are specified in the form.(3) 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.(Added 2 of 2002 s. 14) Part 4AA Default Investment Strategy (Part 4AA added 9 of 2016 s. 8) Division 1 Preliminary 34DA. Interpretation In this Part—*commencement date (生效日期) means the date on which this Part comes into operation; DIS constituent fund (預設投資策略成分基金) means— (a) an Age 65 Plus Fund as defined by section 1 of Schedule 10; or (b) a Core Accumulation Fund as defined by section 1 of Schedule 10; out-of-pocket expenses (實付開支)—(a) means any of the following charges, expenses and fees (however described)—(i) auditor’s fees for annual audit;(ii) printing expenses and postage;(iii) fund price publication expenses;(iv) bank charges;(v) governmental fees and charges (including stamp duties and licence fees);(vi) other charges, expenses or fees that are properly incurred and permitted under this Ordinance or the governing rules; and(b) does not include fees payable to the system operator of an electronic MPF system under section 19U; (Replaced 40 of 2021 s. 24)pre-existing account (既有帳户) means an account of a scheme member of a registered scheme that was opened before the commencement date;specific investment instructions (特定投資指示), in relation to an account of a scheme member of a registered scheme, means the instructions given by the member to the approved trustee of the scheme to invest the accrued benefits in the account according to the member’s selection as permitted under the governing rules. Editorial Note: * Commencement date: 1 April 2017. Division 2 Default Investment Strategy 34DB. Approved trustee to invest accrued benefits according to default investment strategy (1) An approved trustee of a registered scheme—(a) must provide in the governing rules of the scheme a default investment strategy that complies with Part 2 of Schedule 10;(b) must ensure that any investment related to the strategy accords with the requirements under this Part and Part 2 of Schedule 10;(c) subject to subsections (2), (3) and (4), must invest the accrued benefits of a scheme member according to the strategy; and(d) must ensure that the strategy is available for selection by scheme members.(2) The operation of subsection (1)(c) is subject to—(a) any specific investment instructions given by the member for the accrued benefits; and(b) Divisions 3 and 4.(3) The trustee must not invest the accrued benefits in a pre-existing account of a scheme member according to the strategy if the trustee is aware that the member has reached 60 years of age before the commencement date, unless the member has given specific investment instructions to invest those benefits according to the strategy.(4) Subsection (1)(c) does not oblige the trustee to invest the accrued benefits in an account of a scheme member of a registered scheme according to the strategy if—(a) all or any of the accrued benefits in that account—(i) have been transferred from an account in another registered scheme to that account in a restructuring to which the Authority consented under section 34B(5); and(ii) were not invested according to the strategy before the restructuring; or(b) all or any of the accrued benefits in that account have been invested in a constituent fund but the approval granted in respect of the fund has been cancelled by the Authority under section 21BB(1)(b). 34DC. Transfer of accrued benefits to an account within the same registered scheme (1) If all or any of the accrued benefits in an account of a scheme member of a registered scheme (transferor account) are transferred to another account of the member within the scheme (transferee account), the transferred benefits are to remain invested in the same manner as they were invested immediately before the transfer, unless the member otherwise instructs as permitted under the governing rules. (Amended 40 of 2021 s. 25)(2) For the purposes of this section—(a) section 27(2A) does not oblige the trustee to invest the transferred benefits according to any specific investment instructions that the member has given before the transfer for the accrued benefits in the transferee account; and(b) section 34DB(1)(c) does not oblige the trustee to invest the transferred benefits according to the default investment strategy if the member has given specific investment instructions for the transferred benefits before the transfer.(3) In this section—transferred benefits (轉移權益) means the accrued benefits in the transferor account that are transferred, or have been transferred, to the transferee account. 34DD. Control of payment for services relating to default investment strategy (1) Subject to subsection (3), the approved trustee of a registered scheme must ensure that no payment for the services specified in subsection (2) may be charged to or imposed on—(a) a DIS constituent fund of the scheme; or(b) a scheme member who invests in the fund.(2) The services specified for the purposes of subsection (1) are services provided in relation to the DIS constituent fund by—(a) the approved trustee;(b) a specified service provider; or(c) a person named as the sponsor or promoter in the governing rules of the registered scheme.(3) Subsection (1) does not apply to payments for those services—(a) that are calculated as a percentage of the net asset value of the DIS constituent fund;(b) that are—(i) for the services provided by a custodian in connection with holding, maintaining or transacting the investments of the fund; and(ii) customarily not calculated as a percentage of the net asset value of the fund;(c) that are for the services relating to the establishment or winding up of the fund; or(d) that are charged to the member for obtaining copies of documents not required to be provided under this Ordinance.(4) The approved trustee must ensure that—(a) the aggregate of the total amounts mentioned in subparagraphs (i) and (ii), when it is expressed as a percentage of the net asset value of the DIS constituent fund, does not, in a single day, exceed the percentage specified in section 1 of Schedule 11—(i) the total amount of all payments for the services specified in subsection (2) that are—(A) charged to or imposed on the fund, or a scheme member who invests in the fund; and(B) calculated as a percentage of the net asset value of the fund; and(ii) the total amount of any proportionate underlying investment fund fees chargeable to any underlying investment fund of the fund;

and(b) the total amount of all payments that are charged to or imposed on the DIS constituent fund, or a scheme member who invests in the fund, for out-of-pocket expenses incurred by the approved trustee on a recurrent basis in the discharge of the approved trustee’s duties to provide services in relation to the fund, when it is expressed as a percentage of the net asset value of the fund, does not, in a single year, exceed the percentage specified in section 2 of Schedule 11.(5) In this section— proportionate underlying investment fund fee (按比例基礎投資項目基金費用), in relation to an underlying investment fund, means an amount that is calculated by the following formula— A × B where— A is the underlying investment fund fee being calculated as a percentage of the net asset value of the underlying investment fund; B is the proportion of the assets of the DIS constituent fund that is invested in the underlying investment fund; specified CIS (指明CIS)—(a) means a collective investment scheme as defined by section 1(1) of Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A); and(b) does not include such a scheme that is a REIT; (Added 40 of 2021 s. 26) specified person (指明人士), in relation to the definition of underlying investment fund fee, means— (a) a person (first mentioned person) whose role in relation to an underlying investment fund is similar to that of any of the following persons who provide services in relation to a DIS constituent fund—(i) an approved trustee of a registered scheme;(ii) a specified service provider;(iii) a person named as the sponsor or promoter in the governing rules of the scheme; or(b) a person who provides services that are identical or similar to the services provided by the first mentioned person; specified service provider (指明服務提供者), in relation to a registered scheme, means— (a) the following persons appointed or engaged by the approved trustee of the scheme to provide services for the purposes of the scheme—(i) an investment manager of the scheme;(ii) a custodian of the scheme assets of the scheme;(iii) an administrator who administers the scheme in whole or in part; (Amended 40 of 2021 s. 26) (b) a person to whom the provision of those services is delegated by such a manager, custodian or administrator; or (Amended 40 of 2021 s. 26) (c) the system operator of an electronic MPF system; (Added 40 of 2021 s. 26) underlying investment fund (基礎投資項目基金), in relation to the DIS constituent fund in which the accrued benefits of a scheme member of a registered scheme is invested, means any of the following fund or scheme in which those accrued benefits are directly or indirectly invested by the fund— (a) an approved pooled investment fund as defined by section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A); (b) an index-tracking collective investment scheme as defined by section 1(1) of Schedule 1 to that Regulation; (c) a specified CIS; (Replaced 40 of 2021 s. 26) underlying investment fund fee (基礎投資項目基金費用)— (a) means any amount payable for the services provided in relation to an underlying investment fund by a specified person; but (b) does not include the payment for the services similar to those referred to in subsection (3)(b) and (c) in relation to a DIS constituent fund. (6) For the purposes of the definition of specified CIS in subsection (5), a REIT is a real estate investment trust with all of the following characteristics—(a) does not engage in active trading of real estate;(b) invests predominantly in real estate for generating recurrent rental income;(c) the majority of its income derives from rentals of real estate;(d) distributes a significant portion of its income to holders in the form of regular dividends or other distributions (however described);(e) is listed on a stock exchange. (Added 40 of 2021 s. 26) 34DE. Amendment of Schedules 10 and 11 (1) The Secretary may, by notice published in the Gazette, amend— (Amemded 40 of 2021 s. 27)(a) Schedule 10, in relation to any or all of the following matters—(i) the percentage of the net asset value of the DIS constituent fund targeted to be invested in higher risk assets;(ii) the range of variation of that percentage;(iii) the age of scheme members specified for an investment strategy;(iv) the number of constituent funds used for investments under the default investment strategy of a registered scheme;(v) a percentage set out in the table in section 4(3) of Schedule 10; or(b) Schedule 11.(2) A notice made under subsection (1) may contain incidental, supplementary, consequential, transitional or savings provisions that are necessary or expedient in consequence of an amendment made by the notice. Division 3 Transitional and Savings Provisions for Pre-existing Accounts Wholly Invested according to Default Investment Arrangement 34DF. Interpretation In this Division— default investment arrangement (預設投資安排)— (a) means a default arrangement—(i) provided before the commencement date in the governing rules of a registered scheme; and(ii) under which the accrued benefits in an account of a scheme member who has not given any specific investment instructions for those benefits are invested; but (b) does not include an arrangement for investing the accrued benefits in an account of a registered scheme—(i) that have been transferred from an account in another registered scheme to that account in a restructuring to which the Authority consented under section 34B(5); or(ii) in another constituent fund due to the Authority’s cancellation, under this Ordinance, of the approval granted in respect of a constituent fund in which the accrued benefits were invested; DIA account (預設投資安排帳户) means a pre-existing account of an existing member that meets the description of section 34DG(1)(b);existing member (現有成員) means a scheme member of a registered scheme to whom this Division applies under section 34DG;reply period (回覆期), in relation to a specified notice, means 42 days after the date of the notice;specified notice (指明通知) means a notice that is approved, or in the form specified, by the Authority for the purposes of this Division. 34DG. Scheme members to whom this Division applies (1) This Division applies to a scheme member of a registered scheme if—(a) either of the following descriptions is met—(i) the member is below 60 years of age, or becomes 60 years of age, on the commencement date;(ii) the approved trustee of the scheme is not aware of the age of the member; and(b) all of the accrued benefits in a pre-existing account of the member were, as at the commencement date, invested according to a default investment arrangement of the scheme and, since then, have remained so invested.(2) Despite subsection (1), this Division does not apply to the member if the trustee reasonably believes that the trustee has received specific investment instructions from the member to invest any of the accrued benefits in the pre-existing account according to the default investment arrangement. 34DH. Accrued benefits in pre-existing account (1) The approved trustee of a registered scheme must continue to invest the accrued benefits in the DIA account of an existing member according to the default investment arrangement of the scheme unless the trustee has received specific investment instructions from the member for those benefits.(2) Despite subsection (1), if those benefits have become invested according to the default investment strategy under section 34DI(2) or 34DJ(3) or (5), the trustee must continue to invest any accrued benefits in the account according to the default investment strategy, whether or not the member is still an existing member, unless the trustee has received specific investment instructions from the member for the benefits in that account.(3) Subsection (1) does not limit the operation of sections 34DI, 34DJ and 34DK. 34DI. Approved trustee to give specified notice to scheme member (1) The approved trustee of a registered scheme must, within 6 months after the commencement date—(a) give a specified notice to each existing member in respect of the DIA account, or each of the DIA accounts, of the member; and(b) in the specified notice, inform the member of the requirements under subsection (2).(2) Subject to section 34DK, if, by the expiry day of the reply period for a specified notice given under subsection (1) to a scheme member—(a) the trustee has not received specific investment instructions from the member for the accrued benefits in a DIA account of the member; and(b) the member is still an existing member,the trustee must, within 14 days after the expiry day, invest those benefits in the account according to the default investment strategy of the scheme.(3) Despite section 27(2A), the trustee must comply with subsection (2) regardless of any specific investment instructions received by the trustee from the member for those benefits within the 14 days referred to in that subsection. 34DJ. Locating scheme members whose addresses are unknown etc. (1) This section applies if—(a) it comes to the knowledge of an approved trustee of a registered scheme that a specified notice given to an existing member under section 34DI(1) is not taken to have been given under section 206(1A) or (2) of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A); or (b) the trustee is not aware of any contact details of an existing member that enable the trustee to give a specified notice to the member under section 34DI(1).(2) The trustee must proceed to locate the member in the manner, and within the time limit (time limit), specified in the guidelines for the purposes of this section.(3) Subject to section 34DK, if, after subsection (2) has been complied with in respect of a scheme member—(a) the member cannot be located before the expiry of the time limit; and(b) the member is still an existing member,the trustee must, within 14 days after the expiry of the time limit, invest the accrued benefits in the DIA account, or all of the DIA accounts, of the member, according to the default investment strategy of the scheme.(4) If a scheme member in relation to whom subsection (2) applies is located before the expiry of the time limit, and the member is still an existing member, the trustee must, within 14 days after the day on which the member is located—(a) in a case falling within subsection (1)(a), give another specified notice to the member informing the member of the requirements under subsection (5); or(b) in a case falling within subsection (1)(b), give a specified notice to the member informing the member of the requirements under subsection (5).(5) For the purposes of subsection (4) and subject to section 34DK, if, by the expiry day of the reply period for the notice given under that subsection—(a) the trustee has not received specific investment instructions from the member for the accrued benefits in a DIA account of the member; and(b) the member is still an existing member,the trustee must, within 14 days after the expiry day, invest those benefits in the account according to the default investment strategy of the scheme.(6) Despite section 27(2A), the trustee must comply with subsection (3) or (5) regardless of any specific investment instructions received by the trustee from the member for those benefits within the 14 days referred to in that subsection. 34DK. Guaranteed funds (1) This section applies to the accrued benefits of an existing member that have been invested in a guaranteed fund according to a default investment arrangement of the scheme.(2) For the purposes of section 34DI(2) or 34DJ(3) or (5), the approved trustee of the scheme must not invest those benefits according to the default investment strategy of the scheme if, on the expiry day, the market value of those benefits is less than the value guaranteed by the fund to be paid to the member on that day.(3) In this section— expiry day (屆滿日)— (a) in relation to section 34DI(2), means the expiry day referred to in that section; (b) in relation to section 34DJ(3), means the day on which the time limit referred to in that section expires; or (c) in relation to section 34DJ(5), means the expiry day referred to in that section; guaranteed fund (保證基金) means a constituent fund that provides a guaranteed return of capital, income on capital or both the capital and the income. Division 4 Transitional and Savings Provisions for Pre-existing Accounts Partially Invested according to Default Investment Arrangement 34DL. Interpretation In this Division—default investment arrangement (預設投資安排) has the meaning given by section 34DF. 34DM. Accrued benefits continue to be invested according to default investment arrangement If—(a) a scheme member of a registered scheme is below 60 years of age, or becomes 60 years of age, on the commencement date; and(b) immediately before the commencement date, part of the accrued benefits in a pre-existing account of the member have been invested according to a default investment arrangement of the scheme,then, the approved trustee must continue to invest part of the accrued benefits in the account according to the arrangement unless the trustee has received specific investment instructions from the member for those benefits. Part 4A Sales and Marketing Activities, and Giving of Advice, in relation to Registered Schemes (Part 4A added 16 of 2012 s. 13)(Format changes—E.R. 1 of 2013) Division 1 Preliminary 34E. Interpretation In this Part—certified public accountant (會計師) means a person who is registered as a certified public accountant by virtue of section 22 of the Professional Accountants Ordinance (Cap. 50);disciplinary order (紀律制裁命令) means an order made under section 34ZW(3), (4), (5) or (6); frontline regulator (前線監督)— (a) in relation to a person who is a principal intermediary, means the industry regulator assigned under section 34Z(1) or (2) as the regulator of the person for the purposes of this Part; (b) in relation to a person who is a subsidiary intermediary attached to a principal intermediary, means the industry regulator assigned under section 34ZA(1) or (2) as the regulator of the person, in the person’s capacity as such a subsidiary intermediary, for the purposes of this Part; or (c) in relation to an individual who is a responsible officer of a principal intermediary, means the industry regulator assigned under section 34ZB(1) or (2) as the regulator of the individual, in the individual’s capacity as such a responsible officer, for the purposes of this Part; industry regulator (行業監督) means— (a) the Insurance Authority; (b) the Monetary Authority; or (c) the Securities and Futures Commission; inspector (查察員), in relation to a regulated person, means— (a) the frontline regulator of the regulated person; or (b) a person directed by that frontline regulator under section 34ZQ(1)(b) to ascertain any matter in relation to the regulated person; investigator (調查員)— (a) in relation to an investigation under Division 3, means—(i) the Authority;(ii) an industry regulator nominated by the Authority under section 34O(1)(b) to assist the Authority in the investigation; or(iii) a person directed by the Authority or such an industry regulator under section 34O(1)(a)(ii) or (2)(b) in relation to the investigation; or (b) in relation to an investigation under Division 7 in respect of a regulated person, means—(i) the frontline regulator of the regulated person; or(ii) a person directed by that frontline regulator under section 34ZT(1)(b) in relation to the investigation; licensed long term individual insurance agent (持牌長期業務個人保險代理) means a licensed individual insurance agent as defined by section 2(1) of the Insurance Ordinance (Cap. 41) who is eligible to engage in long term business within the meaning of that Ordinance; (Added 12 of 2015 s. 121)licensed long term insurance agency (持牌長期業務保險代理機構) means a licensed insurance agency as defined by section 2(1) of the Insurance Ordinance (Cap. 41) who is eligible to engage in long term business within the meaning of that Ordinance; (Added 12 of 2015 s. 121)licensed long term insurance broker company (持牌長期業務保險經紀公司) means a licensed insurance broker company as defined by section 2(1) of the Insurance Ordinance (Cap. 41) who is eligible to engage in long term business within the meaning of that Ordinance; (Added 12 of 2015 s. 121)licensed long term technical representative (持牌長期業務代表) means—(a) a licensed technical representative (agent) as defined by section 2(1) of the Insurance Ordinance (Cap. 41) who is appointed as an agent by a licensed long term insurance agency; or(b) a licensed technical representative (broker) as defined by section 2(1) of the Insurance Ordinance (Cap. 41) who is appointed as an agent by a licensed long term insurance broker company; (Added 12 of 2015 s. 121) performance requirement (作業要求)— (a) in relation to a registered intermediary, means—(i) a requirement under section 34ZL; or(ii) a condition to which the registration as a principal or subsidiary intermediary, or the approval of the attachment to a principal intermediary, is subject by virtue of section 34X; or (b) in relation to a responsible officer, means—(i) a requirement under section 34ZM; or(ii) a condition to which the approval as such responsible officer is subject by virtue of section 34X; prescribed person (訂明人士)— (a) in relation to the Insurance Authority, means an employee of the Insurance Authority; (Replaced 12 of 2015 s. 121) (b) in relation to the Monetary Authority, means a person appointed by the Financial Secretary under section 5A(3) of the Exchange Fund Ordinance (Cap. 66); or (c) in relation to the Securities and Futures Commission, means an employee of the Commission; Register (中介人紀錄冊) means the register of intermediaries for regulated activities established under section 34Q(1); Type A regulatee (甲類受規管者)— (a) in relation to the Insurance Authority, means—(i) a company that is authorized under section 8 of the Insurance Ordinance (Cap. 41) to carry on long term business within the meaning of that Ordinance; or(ii) a licensed long term insurance broker company; (Replaced 12 of 2015 s. 121) (b) in relation to the Monetary Authority, means an authorized financial institution that is registered under section 119 of the Securities and Futures Ordinance (Cap. 571) for Type 1 or Type 4 regulated activity, or both, within the meaning of that Ordinance; or (c) in relation to the Securities and Futures Commission, means a corporation that is licensed under section 116 of the Securities and Futures Ordinance (Cap. 571) to carry on Type 1 or Type 4 regulated activity, or both, within the meaning of that Ordinance; Type B regulatee (乙類受規管者)— (a) in relation to the Insurance Authority, means—(i) a licensed long term individual insurance agent;(ii) a licensed long term insurance agency; or(iii) a licensed long term technical representative; (Replaced 12 of 2015 s. 121) (b) in relation to the Monetary Authority, means—(i) a relevant individual who is registered under section 20 of the Banking Ordinance (Cap. 155) as engaged in respect of Type 1 or Type 4 regulated activity, or both, within the meaning of the Securities and Futures Ordinance (Cap. 571); or(ii) a person who, with the consent of the Monetary Authority under section 71C of the Banking Ordinance (Cap. 155), is an executive officer of a registered institution appointed under section 71D of that Ordinance to be responsible for directly supervising the conduct of each business conducted by the registered institution that constitutes Type 1 or Type 4 regulated activity, or both, within the meaning of the Securities and Futures Ordinance (Cap. 571); or (c) in relation to the Securities and Futures Commission, means a person who is licensed under section 120 of the Securities and Futures Ordinance (Cap. 571) to carry on Type 1 or Type 4 regulated activity, or both, within the meaning of that Ordinance. (Amended 12 of 2015 s. 121) 34F. Regulated activity, material decision and regulated advice (1) For the purposes of this Part, a person carries on a regulated activity if the person—(a) invites or induces, or attempts to invite or induce, another person to make a material decision; or(b) gives regulated advice.(2) Despite subsection (1), a person does not carry on a regulated activity if—(a) the person issues an advertisement, invitation or document; and(b) the issue is authorized by the Securities and Futures Commission under section 105 of the Securities and Futures Ordinance (Cap. 571).(3) For the purposes of this Part, a person makes a material decision if the person makes a decision as to any matter specified in subsection (5).(4) For the purposes of this Part, a person gives regulated advice if the person gives an opinion in relation to any matter specified in subsection (5).(5) The following matters are specified for the purposes of subsections (3) and (4)—(a) whether, or when, to apply to join or become a member of a particular registered scheme;(b) whether, or when, to apply to participate in a particular registered scheme as an employer;(c) whether, or when, to pay contributions (including voluntary contributions) to a particular registered scheme, or to invest in a particular constituent fund of a registered scheme;(d) the amount of contributions (including voluntary contributions) to be paid to a particular registered scheme, or the amount to be invested in a particular constituent fund of a registered scheme;(e) whether, or when, to transfer accrued benefits from a particular registered scheme to another particular registered scheme, or from a particular constituent fund of a registered scheme to another particular constituent fund of the registered scheme;(f) the amount of accrued benefits to be transferred from a particular registered scheme to another particular registered scheme, or from a particular constituent fund of a registered scheme to another particular constituent fund of the registered scheme;(g) whether, or when, to transfer benefits from an occupational retirement scheme to a particular registered scheme;(h) the amount of benefits to be transferred from an occupational retirement scheme to a particular registered scheme;(i) whether, or when, to make a claim for the payment of accrued benefits from a registered scheme;(j) the amount of a claim mentioned in paragraph (i). 34G. Principal intermediary (1) In this Part—(a) a person is a principal intermediary if the person is registered under section 34T(4) as an intermediary for carrying on regulated activities; and(b) subject to section 34M(9)(a), such a person is still a principal intermediary even though the registration is suspended under this Part.(2) In this Part, a reference to a registration of a person as a principal intermediary—(a) is a reference to a registration under section 34T(4) as an intermediary for carrying on regulated activities; and(b) includes such a registration that is suspended under this Part. 34H. Subsidiary intermediary (1) In this Part—(a) a person is a subsidiary intermediary if the person is registered under section 34U(4) as an intermediary for carrying on regulated activities for a principal intermediary to which the person is to be attached; and(b) subject to section 34V(7), such a person is still a subsidiary intermediary even though the registration is suspended under this Part.(2) In this Part, a reference to a registration of a person as a subsidiary intermediary—(a) is a reference to a registration under section 34U(4) as an intermediary for carrying on regulated activities for a principal intermediary to which the person is to be attached; and(b) includes such a registration that is suspended under this Part.(3) In this Part—(a) a person is a subsidiary intermediary attached to a principal intermediary if the person is approved under section 34V(4) as being attached to the principal intermediary for the purpose of carrying on regulated activities; and(b) subject to sections 34M(9)(b) and 34W(7), such a person is still a subsidiary intermediary attached to the principal intermediary even though—(i) the registration of the person as a subsidiary intermediary is suspended under this Part; or(ii) the approval is suspended under this Part.(4) In this Part, a reference to an approval of the attachment of a person to a principal intermediary—(a) is a reference to an approval under section 34V(4) of the attachment of the person to the principal intermediary for the purpose of carrying on regulated activities; and(b) includes such an approval that is suspended under this Part. 34I. Responsible officer and specified responsibilities (1) In this Part—(a) an individual is a responsible officer of a principal intermediary if the individual is approved under section 34W(4) as an officer with specified responsibilities in relation to the principal intermediary; and(b) subject to section 34ZD(5), such an individual is still a responsible officer of the principal intermediary even though the approval is suspended under this Part.(2) In this Part, a reference to the approval of an individual as a responsible officer of a principal intermediary—(a) is a reference to an approval under section 34W(4) of the individual as an officer with specified responsibilities in relation to the principal intermediary; and(b) includes such an approval that is suspended under this Part.(3) In this Part, a reference to specified responsibilities in relation to a principal intermediary, is a reference to—(a) the responsibility to ensure that the principal intermediary has established and maintains proper controls and procedures for securing compliance by the principal intermediary, and by each subsidiary intermediary attached to the principal intermediary, with this Part; and(b) the responsibility to ensure that the principal intermediary uses the principal intermediary’s best endeavours to secure observance by subsidiary intermediaries attached to the principal intermediary of the controls and procedures mentioned in paragraph (a). 34J. Revocation or suspension of qualification as Type A regulatee (1) For the purposes of this Part, a person has a qualification as a Type A regulatee revoked on disciplinary grounds if—(a) in the case of the qualification mentioned in paragraph (a)(i) of the definition of Type A regulatee in section 34E as a company authorized to carry on long term business under the Insurance Ordinance (Cap. 41), the authorization granted under section 8 of that Ordinance is revoked under section 41P(2)(a) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 122)(b) in the case of the qualification mentioned in paragraph (a)(ii) of that definition as a licensed long term insurance broker company, the licence granted under section 64ZA of the Insurance Ordinance (Cap. 41) is revoked under section 81(4)(a)(i) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 122)(c) in the case of the qualification mentioned in paragraph (b) of that definition—(i) as an authorized financial institution registered for Type 1 or Type 4 regulated activity, the registration is revoked under section 196(1)(i)(A) of the Securities and Futures Ordinance (Cap. 571) in relation to that regulated activity; or(ii) as an authorized financial institution registered for Type 1 and Type 4 regulated activities, the registration is revoked under that section in relation to those regulated activities; or(d) in the case of the qualification mentioned in paragraph (c) of that definition—(i) as a corporation licensed to carry on Type 1 or Type 4 regulated activity, the licence is revoked under section 194(1)(i)(A) of the Securities and Futures Ordinance (Cap. 571) in relation to that regulated activity; or(ii) as a corporation licensed to carry on Type 1 and Type 4 regulated activities, the licence is revoked under that section in relation to those regulated activities.(2) For the purposes of this Part, a person has a qualification as a Type A regulatee suspended if—(a) in the case of the qualification mentioned in paragraph (a)(i) of the definition of Type A regulatee in section 34E as a company authorized to carry on long term business under the Insurance Ordinance (Cap. 41), the authorization granted under section 8 of that Ordinance is suspended under section 41P(2)(b) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 122)(ab) in the case of the qualification mentioned in paragraph (a)(ii) of that definition as a licensed long term insurance broker company, the licence granted under section 64ZA of the Insurance Ordinance (Cap. 41) is suspended under section 81(4)(a)(ii) of that Ordinance in relation to long term business; (Added 12 of 2015 s. 122)(b) in the case of the qualification mentioned in paragraph (b) of that definition—(i) as an authorized financial institution registered for Type 1 or Type 4 regulated activity, the registration is suspended under section 196(1)(i)(B) or 197(1) of the Securities and Futures Ordinance (Cap. 571), or is deemed to be suspended under section 197(4) of that Ordinance, in relation to that regulated activity; or(ii) as an authorized financial institution registered for Type 1 and Type 4 regulated activities, the registration is suspended under that section 196(1)(i)(B) or 197(1), or is deemed to be suspended under that section 197(4), in relation to those regulated activities; or(c) in the case of the qualification mentioned in paragraph (c) of that definition—(i) as a corporation licensed to carry on Type 1 or Type 4 regulated activity, the licence is suspended under section 194(1)(i)(B) or 195(1) of the Securities and Futures Ordinance (Cap. 571), or is deemed to be suspended under section 195(4) of that Ordinance, in relation to that regulated activity; or(ii) as a corporation licensed to carry on Type 1 and Type 4 regulated activities, the licence is suspended under that section 194(1)(i)(B) or 195(1), or is deemed to be suspended under that section 195(4), in relation to those regulated activities. 34K. Revocation or suspension of qualification as Type B regulatee (1) For the purposes of this Part, a person has a qualification as a Type B regulatee revoked on disciplinary grounds if—(a) in the case of the qualification mentioned in paragraph (a)(i) of the definition of Type B regulatee in section 34E as a licensed long term individual insurance agent, the licence granted under section 64W of the Insurance Ordinance (Cap. 41) is revoked under section 81(4)(a)(i) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 123)(b) in the case of the qualification mentioned in paragraph (a)(ii) of that definition as a licensed long term insurance agency, the licence granted under section 64U of the Insurance Ordinance (Cap. 41) is revoked under section 81(4)(a)(i) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 123)(c) in the case of the qualification mentioned in paragraph (a)(iii) of that definition as a licensed long term technical representative, the licence granted under section 64Y or 64ZC of the Insurance Ordinance (Cap. 41) is revoked under section 81(4)(a)(i) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 123)(d) (Repealed 12 of 2015 s. 123)(e) in the case of the qualification mentioned in paragraph (b)(i) of that definition—(i) as a relevant individual registered as engaged in respect of Type 1 or Type 4 regulated activity, all or any of the person’s relevant particulars are removed from the register under section 58A(1)(c) of the Banking Ordinance (Cap. 155) in relation to that regulated activity; or(ii) as a relevant individual registered as engaged in respect of Type 1 and Type 4 regulated activities, all or any of the person’s relevant particulars are removed from the register under that section in relation to those regulated activities;(f) in the case of the qualification mentioned in paragraph (b)(ii) of that definition—(i) as a person who is an executive officer appointed to be responsible for directly supervising the conduct of each business that constitutes Type 1 or Type 4 regulated activity, the consent is withdrawn under section 71C(4)(c) of the Banking Ordinance (Cap. 155) in relation to a business that constitutes that regulated activity; or(ii) as a person who is an executive officer appointed to be responsible for directly supervising the conduct of each business that constitutes Type 1 and Type 4 regulated activities, the consent is withdrawn under that section in relation to a business that constitutes those regulated activities; or(g) in the case of the qualification mentioned in paragraph (c) of that definition—(i) as a person licensed to carry on Type 1 or Type 4 regulated activity, the licence is revoked under section 194(1)(i)(A) of the Securities and Futures Ordinance (Cap. 571) in relation to that regulated activity; or(ii) as a person licensed to carry on Type 1 and Type 4 regulated activities, the licence is revoked under that section in relation to those regulated activities.(2) For the purposes of this Part, a person has a qualification as a Type B regulatee suspended if—(a) in the case of the qualification mentioned in paragraph (a)(i) of the definition of Type B regulatee in section 34E as a licensed long term individual insurance agent, the licence granted under section 64W of the Insurance Ordinance (Cap. 41) is suspended under section 81(4)(a)(ii) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 123)(b) in the case of the qualification mentioned in paragraph (a)(ii) of that definition as a licensed long term insurance agency, the licence granted under section 64U of the Insurance Ordinance (Cap. 41) is suspended under section 81(4)(a)(ii) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 123)(c) in the case of the qualification mentioned in paragraph (a)(iii) of that definition as a licensed long term technical representative, the licence granted under section 64Y or 64ZC of the Insurance Ordinance (Cap. 41) is suspended under section 81(4)(a)(ii) of that Ordinance in relation to long term business; (Replaced 12 of 2015 s. 123)(d) in the case of the qualification mentioned in paragraph (b)(i) of that definition—(i) as a relevant individual registered as engaged in respect of Type 1 or Type 4 regulated activity, all or any of the person’s relevant particulars are suspended from the register under section 58A(1)(d) of the Banking Ordinance (Cap. 155) in relation to that regulated activity; or(ii) as a relevant individual registered as engaged in respect of Type 1 and Type 4 regulated activities, all or any of the person’s relevant particulars are suspended from the register under that section in relation to those regulated activities;(e) in the case of the qualification mentioned in paragraph (b)(ii) of that definition—(i) as a person who is an executive officer appointed to be responsible for directly supervising the conduct of each business that constitutes Type 1 or Type 4 regulated activity, the consent is suspended under section 71C(4)(d) of the Banking Ordinance (Cap. 155) in relation to a business that constitutes that regulated activity; or(ii) as a person who is an executive officer appointed to be responsible for directly supervising the conduct of each business that constitutes Type 1 and Type 4 regulated activities, the consent is suspended under that section in relation to a business that constitutes those regulated activities; or(f) in the case of the qualification mentioned in paragraph (c) of that definition—(i) as a person licensed to carry on Type 1 or Type 4 regulated activity, the licence is suspended under section 194(1)(i)(B) or 195(1) of the Securities and Futures Ordinance (Cap. 571), or is deemed to be suspended under section 195(4) of that Ordinance, in relation to that regulated activity; or(ii) as a person licensed to carry on Type 1 and Type 4 regulated activities, the licence is suspended under that section 194(1)(i)(B) or 195(1), or is deemed to be suspended under that section 195(4), in relation to those regulated activities. Division 2 Prohibitions 34L. Prohibition against carrying on regulated activities etc. (1) A person must not carry on any regulated activity—(a) in the course of the person’s business or employment; or(b) for reward.(2) A person must not hold themselves out—(a) as carrying on regulated activities in the course of the person’s business or employment; or(b) as carrying on regulated activities for reward.(3) A person must not take or use—(a) the title of “principal intermediary”, “subsidiary intermediary”, “主事中介人” or “附屬中介人”; or(b) any other title suggesting that the person carries on regulated activities—(i) in the course of the person’s business or employment; or(ii) for reward. 34M. Exceptions to section 34L (1) Section 34L does not—(a) prohibit a principal intermediary from—(i) carrying on regulated activities in the course of the principal intermediary’s business; or(ii) holding themselves out as so carrying on regulated activities; or(b) prohibit a subsidiary intermediary attached to a principal intermediary from—(i) carrying on regulated activities for the principal intermediary in the course of acting as an employee, agent or representative of the principal intermediary; or(ii) holding themselves out as so carrying on regulated activities.(2) Section 34L does not—(a) prohibit a principal intermediary from taking or using the title of “principal intermediary” or “主事中介人”; or(b) prohibit a subsidiary intermediary from taking or using the title of “subsidiary intermediary” or “附屬中介人”.(3) Section 34L does not—(a) prohibit an approved trustee, a participating employer, or a service provider, from—(i) carrying on regulated activities for the purpose of complying with a requirement under this Ordinance; or(ii) holding themselves out as so carrying on regulated activities; or(b) prohibit the Authority from—(i) carrying on regulated activities for the purpose of performing a function under this Ordinance; or(ii) holding itself out as so carrying on regulated activities.(4) Section 34L does not—(a) prohibit a solicitor from—(i) giving regulated advice wholly incidental to his or her practice as a solicitor in a Hong Kong firm or foreign firm within the meaning of the Legal Practitioners Ordinance (Cap. 159); or(ii) holding himself or herself out as so giving regulated advice;(b) prohibit counsel from—(i) giving regulated advice wholly incidental to his or her practice as counsel; or(ii) holding himself or herself out as so giving regulated advice;(c) prohibit a certified public accountant from—(i) giving regulated advice wholly incidental to his or her practice as a certified public accountant in a practice unit as defined by section 2(1) of the Accounting and Financial Reporting Council Ordinance (Cap. 588); or(Amended L.N. 66 of 2022)(ii) holding himself or herself out as so giving regulated advice; or(d) prohibit a trust company registered under Part 8 of the Trustee Ordinance (Cap. 29) (other than an approved trustee) from—(i) giving regulated advice wholly incidental to the discharge of its duty as such trust company; or(ii) holding itself out as so giving regulated advice.(5) Section 34L does not prohibit a person from—(a) giving regulated advice through—(i) a newspaper, magazine, book or other publication that is made generally available to the public (excluding one that is made available on subscription only); or(ii) a television broadcast or radio broadcast for reception by the public, whether on subscription or otherwise; or(b) holding themselves out as so giving regulated advice.(6) Section 34L does not prohibit a company from—(a) giving regulated advice to a specified company; or(b) holding itself out as so giving regulated advice.(7) In this section—specified company (指明公司), in relation to a company, means—(a) a wholly owned subsidiary of the company;(b) another company that holds all the issued shares of the company; or(c) a wholly owned subsidiary of that other company mentioned in paragraph (b).(8) For the purposes of this section, a company is a wholly owned subsidiary of another company if it has only the following as members—(a) that other company;(b) a nominee of that other company;(c) a wholly owned subsidiary of that other company;(d) a nominee of such a wholly owned subsidiary.(9) In subsection (1)—(a) a reference to a principal intermediary does not include a person whose registration as a principal intermediary is suspended under this Part; and(b) a reference to a subsidiary intermediary attached to a principal intermediary does not include a person—(i) whose registration as a subsidiary intermediary is suspended under this Part; or(ii) the approval of whose attachment to the principal intermediary is suspended under this Part.(Amended E.R. 2 of 2014) 34N. Offence relating to prohibitions (1) A person who, without reasonable excuse, contravenes section 34L(1) or (2) commits an offence.(2) Subject to subsection (3), a person who commits an offence under subsection (1) is liable—(a) on conviction on indictment to a fine of $5,000,000 and to imprisonment for 7 years and, in the case of a continuing offence, to a further fine of $100,000 for each day on which the offence is continued; or(b) on summary conviction to a fine of $500,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for each day on which the offence is continued.(3) If a person contravenes section 34L(1) or (2) by carrying on regulated activities for another person in the course of acting as an employee, agent or representative of that other person, or for holding themselves out as so carrying on regulated activities, the person is liable—(a) on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $20,000 for each day on which the offence is continued; or(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $2,000 for each day on which the offence is continued.(4) A person who, without reasonable excuse, contravenes section 34L(3) commits an offence and is liable on conviction to a fine at level 6 and, in the case of a continuing offence, to a further fine of $2,000 for each day on which the offence is continued. Division 3 Investigation concerning Contravention of Prohibition 34O. Initiating investigation (1) If the Authority has reasonable cause to believe that a person may have contravened section 34L—(a) the Authority—(i) may exercise the powers under section 34P for the purpose of investigating the contravention or the question whether or not there has been such a contravention; or(ii) may in writing direct a person employed by the Authority to investigate, with those powers, the contravention or the question whether or not there has been such a contravention; or(b) the Authority may, in writing, nominate an industry regulator to assist the Authority in the investigation.(2) If the Authority nominates an industry regulator to assist the Authority in an investigation under subsection (1)(b), the industry regulator—(a) may exercise the powers under section 34P for the purpose of investigating the contravention or the question whether or not there has been such a contravention; or(b) may in writing direct a prescribed person to investigate, with those powers, the contravention or the question whether or not there has been such a contravention.(3) If the Authority or an industry regulator directs a person under subsection (1)(a)(ii) or (2)(b) in relation to an investigation—(a) the Authority or industry regulator must provide the person with a copy of the direction; and(b) the person must, before imposing a requirement under section 34P on another person, produce a copy of the direction to that other person.(4) Before the Authority, or a person directed by the Authority under subsection (1)(a)(ii), imposes a requirement under section 34P on another person who is a Type A or Type B regulatee of an industry regulator, the Authority or the person so directed must consult the industry regulator.(5) Before an industry regulator, or a person directed by an industry regulator under subsection (2)(b), imposes a requirement under section 34P on another person who is a Type A or Type B regulatee of another industry regulator, the industry regulator or the person so directed must consult that other industry regulator.(6) Even though the Authority or an industry regulator has directed a person under subsection (1)(a)(ii) or (2)(b) in relation to an investigation, the Authority or industry regulator may still exercise the powers under section 34P for the purpose of the investigation.(7) Even though the Authority has nominated an industry regulator under subsection (1)(b) to assist the Authority in an investigation, the Authority—(a) may still exercise the powers under section 34P for the purpose of the investigation; or(b) may still direct a person employed by the Authority under subsection (1)(a)(ii) in relation to the investigation. 34P. Investigation powers (1) An investigator may, in writing, require a person specified in subsection (2)—(a) to produce, within the time and at the place specified in the requirement, any record or document specified in the requirement—(i) that is or may be relevant to any matter under investigation; and(ii) that is in the person’s possession;(b) to attend before the investigator at the time and place specified in the requirement, and answer any question relating to any matter under investigation that the investigator may raise with the person;(c) to respond to any written question relating to any matter under investigation that the investigator may raise with the person; or(d) to give the investigator any assistance in connection with the investigation that the person is reasonably able to give.(2) The person specified for the purposes of subsection (1) is—(a) a person whom the Authority has reasonable cause to believe may have contravened section 34L; or(b) a person whom the investigator has reasonable cause to believe—(i) to be in possession of any record or document that contains, or that is likely to contain, information relevant to any matter under investigation; or(ii) to be otherwise in possession of such information.(3) If a person produces a record or document in compliance with a requirement imposed under subsection (1)(a), the investigator may require the person to give an explanation or further particulars in respect of the record or document.(4) If a person gives any answer, response, explanation or particulars in compliance with a requirement imposed under subsection (1) or (3), the investigator may, in writing, require the person to verify within the time specified in the requirement, the answer, response, explanation or particulars by a statutory declaration.(5) If, for the reason that the information concerned is not within the person’s knowledge or possession, a person does not give any answer, response, explanation or particulars in compliance with a requirement imposed under subsection (1) or (3), the investigator may, in writing, require the person to verify, within the time specified in the requirement, that reason and fact by a statutory declaration.(6) This section is subject to section 34ZZB(2). Division 4 Registration of Intermediaries and Approval of Responsible Officers 34Q.

Register of intermediaries (1) The Authority must establish and keep a register of intermediaries for regulated activities.(2) The Register may be kept in any form that the Authority considers appropriate.(3) At all reasonable times, a member of the public—(a) if the Register is kept in a documentary form, may inspect the Register free of charge; or(b) if the Register is kept otherwise than in a documentary form, may inspect a reproduction of any information recorded in the Register in a legible form free of charge.(4) At all reasonable times, a member of the public may, on payment of a fee of the amount prescribed by the regulations, obtain—(a) a copy of an entry in or extract of the Register; or(b) a copy of such an entry or extract, certified by an authorized officer of the Authority as a true copy of the entry or extract.(5) A right under subsection (3) or (4) is only exercisable for the purpose of enabling the member of the public—(a) to ascertain whether the member of the public is dealing with a regulated person in matters of or connected with any regulated activity; or(b) to ascertain the particulars of—(i) the registration of a person as a principal or subsidiary intermediary; or(ii) the approval of an individual as a responsible officer.(6) In any legal proceedings—(a) a document purporting to be a copy of an entry in or extract of the Register, and purporting to be certified by an authorized officer of the Authority as a true copy of the entry or extract, is admissible in evidence on its production without further proof; and(b) on being admitted in evidence under paragraph (a), the document, unless there is evidence to the contrary—(i) is presumed to be certified by an authorized officer of the Authority;(ii) is presumed to be a true copy of the entry or extract; and(iii) is proof of its contents. 34R. Register to be made available through internet The Authority must make the Register available to the public through the internet. 34S. Contents of Register (1) For every registered intermediary, the Register must contain—(a) the name and the registration number of the intermediary;(b) the condition (if any) to which the registration as a principal or subsidiary intermediary, or the approval of the attachment to a principal intermediary, is subject by virtue of section 34X;(c) the name of the frontline regulator;(d) a record of every disciplinary order (except an order under section 34ZW(5)(b)) that has been in force against the registered intermediary within the last 5 years;(e) if the registration as a principal or subsidiary intermediary, or the approval of the attachment to a principal intermediary, is suspended under this Part, a note to that effect; and(f) any other particulars that are prescribed by the rules.(2) Without limiting subsection (1)—(a) for every principal intermediary, the Register must also contain—(i) the address of the principal intermediary’s principal place of business in Hong Kong; and(ii) the name and the office address of every responsible officer of the principal intermediary; and(b) for every subsidiary intermediary attached to a principal intermediary, the Register must also contain—(i) the name of the principal intermediary;(ii) the address of the principal intermediary’s principal place of business in Hong Kong;(iii) if the registration of the principal intermediary as such is suspended under this Part—(A) a note to that effect; and(B) a note to the effect that section 34M(1)(b) does not apply to the subsidiary intermediary; and(iv) if the subsidiary intermediary is also a responsible officer of the principal intermediary—(A) a note to that effect;(B) the condition (if any) to which the approval as such a responsible officer is subject by virtue of section 34X; and(C) where the approval of the subsidiary intermediary as such responsible officer is suspended under this Part, a note to that effect. 34T. Registration as principal intermediary and related matters (1) A person may apply to the Authority for registration as an intermediary for carrying on regulated activities.(2) An application under subsection (1) must be accompanied by—(a) both of the following—(i) an application made by the principal applicant under section 34V(1) for approval of attachment of a subsidiary intermediary to the principal applicant for the purpose of carrying on regulated activities;(ii) an application made by the principal applicant under section 34W(1) for approval of the subsidiary intermediary as an officer with specified responsibilities in relation to the principal applicant; or(b) all of the following—(i) an application made by an individual under section 34U(1) for registration as an intermediary for carrying on regulated activities for a principal intermediary to which the individual is to be attached;(ii) an application made by the principal applicant under section 34V(1) for approval of attachment of the individual to the principal applicant for the purpose of carrying on regulated activities;(iii) an application made by the principal applicant under section 34W(1) for approval of the individual as an officer with specified responsibilities in relation to the principal applicant.(3) An application under subsection (1)—(a) must be made in the specified form; and(b) must be accompanied by an application fee of the amount prescribed by the regulations.(4) On application under subsection (1), the Authority may register the principal applicant as an intermediary for carrying on regulated activities if—(a) it is satisfied—(i) that the principal applicant is a Type A regulatee of an industry regulator;(ii) that, within 1 year immediately before the date of the application, the principal applicant has not had any qualification as a Type A regulatee revoked on disciplinary grounds;(iii) that the principal applicant does not have any qualification as a Type A regulatee suspended;(iv) that, within 1 year immediately before the date of the application, the principal applicant has not had a registration as a registered intermediary revoked under section 34ZW(3)(a)(i); and(v) that the principal applicant is not disqualified under section 34ZW(3)(a)(ii) from being registered as an intermediary for carrying on regulated activities; and(b) it is satisfied—(i) that—(A) an accompanying application is made for the purposes of subsection (2)(a)(i), and the criteria for approval under section 34V(4) are satisfied; and(B) an accompanying application is made for the purposes of subsection (2)(a)(ii), and the criteria for approval under section 34W(4)(b), (c) and (d) are satisfied; or(ii) that—(A) an accompanying application is made for the purposes of subsection (2)(b)(i), and the criteria for approval under section 34U(4) (except paragraph (g)) are satisfied;(B) an accompanying application is made for the purposes of subsection (2)(b)(ii), and the criteria for approval under section 34V(4)(b), (c) and (d) are satisfied; and(C) an accompanying application is made for the purposes of subsection (2)(b)(iii), and the criteria for approval under section 34W(4)(b), (c) and (d) are satisfied.(5) If the Authority registers under subsection (4) a principal applicant as an intermediary for carrying on regulated activities, the Authority must also grant the accompanying applications made for the purposes of subsection (2)(a) or (b).(6) If the Authority rejects an application made under subsection (1), the Authority must also reject the accompanying applications made for the purposes of subsection (2)(a) or (b).(7) The Authority must give the principal applicant a notice in writing of the results of the application made under subsection (1).(8) A notice under subsection (7) must, in the case of the application being rejected, include a statement of reasons for the rejection.(9) In this section—principal applicant (主要申請人) means the person who applies under subsection (1) for registration as an intermediary for carrying on regulated activities. 34U. Registration as subsidiary intermediary (1) A person may apply to the Authority for registration as an intermediary for carrying on regulated activities for a principal intermediary to which the person is to be attached.(2) An application under subsection (1) must be accompanied by an application made by a principal intermediary under section 34V(1) for approval of attachment of the principal applicant to the principal intermediary for the purpose of carrying on regulated activities.(3) An application under subsection (1)—(a) must be made in the specified form; and(b) must be accompanied by an application fee of the amount prescribed by the regulations.(4) On application under subsection (1), the Authority may register the principal applicant as an intermediary for carrying on regulated activities for a principal intermediary to which the principal applicant is to be attached if it is satisfied—(a) that the principal applicant is a Type B regulatee of an industry regulator but not a Type A regulatee of any industry regulator;(b) that, within 1 year immediately before the date of the application, the principal applicant has not had any qualification as a Type B regulatee revoked on disciplinary grounds;(c) that the principal applicant does not have any qualification as a Type B regulatee suspended;(d) that, within 1 year immediately before the date of the application, the principal applicant has not had a registration as a registered intermediary revoked under section 34ZW(3)(a)(i);(e) that the principal applicant is not disqualified under section 34ZW(3)(a)(ii) from being registered as an intermediary for carrying on regulated activities for a principal intermediary to which the principal applicant is to be attached;(f) that if the principal applicant is an individual, the principal applicant has, within 1 year immediately before the date of the application, passed a qualifying examination specified by the Authority; and(g) that—(i) an accompanying application is made for the purposes of subsection (2); and(ii) the criteria for approval of the attachment under section 34V(4)(b), (c) and (d) are satisfied.(5) Subsection (4)(f) does not apply if—(a) within 3 years immediately before the date of the application, the principal applicant has been registered as a subsidiary intermediary and that registration has been revoked; and(b) the revocation, or the last revocation (if there is more than one), is not made under section 34ZP(4).(6) If the Authority registers under subsection (4) the principal applicant as an intermediary for carrying on regulated activities for a principal intermediary to which the principal applicant is to be attached, the Authority must also grant the accompanying application made for the purposes of subsection (2).(7) If the Authority rejects an application made under subsection (1), the Authority must also reject the accompanying application made for the purposes of subsection (2).(8) The Authority must give the principal applicant a notice in writing of the results of the application made under subsection (1).(9) A notice under subsection (8) must, in the case of the application being rejected, include a statement of reasons for the rejection.(10) The Authority must publish the qualifying examination specified under subsection (4)(f) in any manner that it considers appropriate.(11) In this section—principal applicant (主要申請人) means the person who applies under subsection (1) for registration as an intermediary for carrying on regulated activities for a principal intermediary to which the person is to be attached. 34V. Approval of attachment of subsidiary intermediary to principal intermediary (1) A person specified in subsection (2) may apply to the Authority for approval of attachment of another person to the specified person for the purpose of carrying on regulated activities.(2) The person is—(a) a principal intermediary; or(b) a person who applies under section 34T(1) for registration as an intermediary for carrying on regulated activities.(3) An application under subsection (1)—(a) must be made in the specified form; and(b) must be accompanied by an application fee of the amount prescribed by the regulations.(4) On application under subsection (1), the Authority may approve the attachment if it is satisfied—(a) that the other person is a subsidiary intermediary;(b) that the applicant consents to the other person being an intermediary for carrying on regulated activities for the applicant;(c) that the other person is employed by, or acts as an agent or representative for, the applicant; and(d) that the other person is a Type B regulatee of an industry regulator that is the frontline regulator of the applicant.(5) The Authority must give the applicant and the other person a notice in writing of the result of the application made under subsection (1).(6) A notice under subsection (5) must, in the case of the application being rejected, include a statement of reasons for the rejection.(7) In subsection (4)(a), a reference to a subsidiary intermediary does not include a person whose registration as a subsidiary intermediary is suspended under this Part. 34W. Approval as responsible officer (1) A person specified in subsection (2) may apply to the Authority for approval of an individual as an officer with specified responsibilities in relation to the specified person.(2) The person is—(a) a principal intermediary; or(b) a person who applies under section 34T(1) for registration as an intermediary for carrying on regulated activities.(3) An application under subsection (1)—(a) must be made in the specified form; and(b) must be accompanied by an application fee of the amount prescribed by the regulations.(4) On application under subsection (1), the Authority may approve the individual as an officer with specified responsibilities in relation to the applicant if it is satisfied—(a) that the individual is a subsidiary intermediary attached to the applicant;(b) that the individual has sufficient authority within the applicant, and will be provided with sufficient resources and support, for carrying out specified responsibilities in relation to the applicant;(c) that, within 1 year immediately before the date of the application, the individual has not had an approval as a responsible officer revoked under section 34ZW(4)(a)(i); and(d) that the individual is not disqualified under section 34ZW(4)(a)(ii) from being approved as an officer with specified responsibilities in relation to a principal intermediary.(5) The Authority must give the applicant and the individual a notice in writing of the result of the application made under subsection (1).(6) A notice under subsection (5) must, in the case of the application being rejected, include a statement of reasons for the rejection.(7) In subsection (4)(a), a reference to a subsidiary intermediary attached to the applicant does not include a person—(a) whose registration as a subsidiary intermediary is suspended under this Part; or(b) the approval of whose attachment to the applicant is suspended under this Part. 34X. Authority may impose conditions on registration or approval (1) This section applies if the Authority—(a) registers a person as a principal or subsidiary intermediary;(b) approves the attachment of a person to a principal intermediary; or(c) approves an individual as a responsible officer of a principal intermediary.(2) The Authority may impose any conditions that it considers appropriate on the registration or approval when the Authority registers or approves the person or individual.(3) The Authority may also impose any conditions that it considers appropriate on the registration or approval after the Authority has registered or approved the person or individual.(4) Subsection (3) applies whether or not a condition has already been imposed on the registration or approval under subsection (2) or (3).(5) The Authority may amend or revoke any conditions imposed under subsection (2) or (3).(6) The power under subsection (2), (3) or (5) is only exercisable by notice in writing given to—(a) in relation to subsection (1)(a), the person;(b) in relation to subsection (1)(b), the person and the principal intermediary; or(c) in relation to subsection (1)(c), the individual and the principal intermediary.(7) A notice under subsection (6) must, in the case of any conditions being imposed or amended, include a statement of reasons for imposing or amending the conditions. 34Y. Procedural requirement for rejecting application, or imposing or amending conditions (1) The Authority must not reject an application made under section 34T(1) or 34U(1) for registration of a person as a principal or subsidiary intermediary, or impose a condition under section 34X(2) or (3) on such a registration, or amend such a condition under section 34X(5), without giving the person an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.(2) The Authority must not reject an application made under section 34V(1) for approval of an attachment of a person to a principal intermediary, or impose a condition under section 34X(2) or (3) on such an approval, or amend such a condition under section 34X(5), without giving the person and the principal intermediary an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.(3) The Authority must not reject an application made under section 34W(1) for approval of an individual as a responsible officer of a principal intermediary, or impose a condition under section 34X(2) or (3) on such an approval, or amend such a condition under section 34X(5), without giving the individual and the principal intermediary an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.(4) In this section, a reference to an opportunity to make representations is a reference to an opportunity to make oral representations or written representations, or both. 34Z. Assignment of frontline regulator for principal intermediary (1) As soon as practicable after the Authority registers a person as a principal intermediary, the Authority must assign an industry regulator as the regulator of the person for the purposes of this Part.(2) If the Authority considers appropriate, the Authority may replace the industry regulator assigned as the frontline regulator of a person registered as a principal intermediary by assigning another industry regulator as the regulator of the person for the purposes of this Part.(3) An assignment under subsection (1) or (2) must comply with subsections (4), (5) and (6).(4) If the person is a Type A regulatee of 1 industry regulator, the industry regulator is to be assigned as the regulator of the person for the purposes of this Part.(5) If the person is a Type A regulatee of the Monetary Authority and a Type A regulatee of another industry regulator—(a) subject to paragraph (b), the Monetary Authority is to be assigned as the regulator of the person for the purposes of this Part; or(b) where the Authority is satisfied that the person carries on the majority of its business activities as a Type A regulatee of that other industry regulator, that other industry regulator is to be assigned as the regulator of the person for the purposes of this Part.(6) If the person is a Type A regulatee of the Insurance Authority and a Type A regulatee of the Securities and Futures Commission—(a) subject to paragraph (b), the Insurance Authority is to be assigned as the regulator of the person for the purposes of this Part; or(b) where the Authority is satisfied that the person carries on the majority of its business activities as a Type A regulatee of the Securities and Futures Commission, the Commission is to be assigned as the regulator of the person for the purposes of this Part.(7) An assignment of an industry regulator as the frontline regulator of a person under subsection (1) or (2) ceases to be in force if—(a) another industry regulator is assigned as the frontline regulator of the person under subsection (2); or(b) the registration of the person as a principal intermediary is revoked under this Part. Editorial Note: This section has effect subject to section 8(3) of Schedule 5B in its application to a person who, by virtue of section 4(2) of that Schedule, is regarded as being registered as a principal intermediary. 34ZA. Assignment of frontline regulator for subsidiary intermediary (1) As soon as practicable after the Authority approves the attachment of a person to a principal intermediary, the Authority must assign the frontline regulator of the principal intermediary as the regulator of the person, in the person’s capacity as a subsidiary intermediary attached to the principal intermediary, for the purposes of this Part.(2) If—(a) the Authority assigns an industry regulator as the frontline regulator of a person in the person’s capacity as a subsidiary intermediary attached to a principal intermediary; and(b) the Authority assigns under section 34Z(2) another industry regulator as the frontline regulator of the principal intermediary, the Authority must replace the industry regulator mentioned in paragraph (a) by assigning that other industry regulator mentioned in paragraph (b) as the regulator of the person, in the person’s capacity as a subsidiary intermediary attached to the principal intermediary, for the purposes of this Part.(3) An assignment of an industry regulator as the frontline regulator of a person under subsection (1) or (2) ceases to be in force if—(a) another industry regulator is assigned as the frontline regulator of the person under subsection (2); or(b) the approval of the attachment of the person to the principal intermediary is revoked under this Part. 34ZB. Assignment of frontline regulator for responsible officer (1) As soon as practicable after the Authority approves an individual as a responsible officer of a principal intermediary, the Authority must assign the frontline regulator of the principal intermediary as the regulator of the individual, in the individual’s capacity as a responsible officer of the principal intermediary, for the purposes of this Part.(2) If—(a) the Authority assigns an industry regulator as the frontline regulator of an individual in the individual’s capacity as a responsible officer of a principal intermediary; and(b) the Authority assigns under section 34Z(2) another industry regulator as the frontline regulator of the principal intermediary, the Authority must replace the industry regulator mentioned in paragraph (a) by assigning that other industry regulator mentioned in paragraph (b) as the regulator of the individual, in the individual’s capacity as a responsible officer of the principal intermediary, for the purposes of this Part.(3) An assignment of an industry regulator as the frontline regulator of an individual under subsection (1) or (2) ceases to be in force if—(a) another industry regulator is assigned as the frontline regulator of the individual under subsection (2); or(b) the approval of the individual as a responsible officer of the principal intermediary is revoked under this Part. Division 5 Change in Circumstances after Registration or Approval 34ZC. Principal intermediary ceasing to be Type A regulatee etc. (1) This section applies if—(a) a person is a principal intermediary;(b) the person—(i) ceases to be a Type A regulatee of an industry regulator; or(ii) has any qualification as a Type A regulatee of an industry regulator suspended; and(c) the industry regulator is the frontline regulator of the person.(2) The registration of the person as a principal intermediary—(a) in the case of subsection (1)(b)(i), is revoked at the time the person ceases to be such a Type A regulatee; or(b) in the case of subsection (1)(b)(ii), is suspended for the period during which that suspension is in force. Editorial Note: This section has effect subject to section 8(4) of Schedule 5B in its application to a person who, by virtue of section 4(2) of that Schedule, is regarded as being registered as a principal intermediary. 34ZD. Principal intermediary without responsible officer (1) The Authority may suspend the registration of a person as a principal intermediary for a period, or until the occurrence of an event, determined by the Authority, if the Authority is satisfied that the person ceases to have a responsible officer.(2) The Authority may revoke the registration of the person as a principal intermediary if—(a) the person has not made an application under section 34W(1) for approval of an individual as a responsible officer of the principal intermediary within 90 days after the date on which the suspension takes effect; or(b) the person has made such an application within 90 days after the date on which the suspension takes effect, and the Authority rejects the application.(3) The power under subsection (1) is not exercisable unless, before exercising the power, the Authority—(a) has given the person a notice in writing of its intention to do so and the reasons for doing so; and(b) has given the person an opportunity to make oral or written representations, or both, on those reasons.(4) A notice under subsection (3)(a) must also include a statement describing—(a) the right of the person to make representations; and(b) how and when the person may make representations.(5) In subsection (1), a reference to a responsible officer does not include an individual whose approval as a responsible officer of the principal intermediary is suspended under this Part. 34ZE. Other change in relation to principal intermediary (1) This section applies if—(a) a principal intermediary ceases to carry on any regulated activity;(b) there is a change in the address or any contact details of a principal intermediary;(c) a principal intermediary—(i) acquires any qualification as a Type A regulatee;(ii) ceases to be a Type A regulatee of any industry regulator; or(iii) has any qualification as a Type A regulatee of an industry regulator suspended; or(d) a responsible officer of a principal intermediary ceases to be an officer with specified responsibilities in relation to the principal intermediary.(2) The principal intermediary must give the Authority a notice in writing of the cessation, change, acquisition or suspension within 7 working days after it occurs.(3) The Authority may revoke the registration of a person as a principal intermediary if the Authority is given a notice under subsection (2) that the person ceases to carry on any regulated activity.(4) The Authority may revoke the approval of an individual as a responsible officer of a principal intermediary if the Authority is given a notice under subsection (2) that the individual ceases to be an officer with specified responsibilities in relation to the principal intermediary.(5) A person who, without reasonable excuse, contravenes subsection (2) commits an offence and is liable to a fine at level 5. Editorial Note: This section has effect subject to section 8(5) of Schedule 5B in its application to a person who, by virtue of section 4(2) of that Schedule, is regarded as being registered as a principal intermediary. 34ZF. Subsidiary intermediary ceasing to be Type B regulatee etc. (1) This section applies if—(a) a person is a subsidiary intermediary attached to a principal intermediary;(b) the person—(i) ceases to be a Type B regulatee of an industry regulator; or(ii) has any qualification as a Type B regulatee of an industry regulator suspended; and(c) the industry regulator is the frontline regulator of the person in the person’s capacity of such intermediary.(2) The approval of the attachment of the person to the principal intermediary—(a) in the case of subsection (1)(b)(i), is revoked at the time the person ceases to be such a Type B regulatee; or(b) in the case of subsection (1)(b)(ii), is suspended for the period during which that suspension is in force.(3) Where the person is not approved as being attached to any principal intermediary after a revocation under subsection (2)(a), the Authority may revoke the registration of the person as a subsidiary intermediary if—(a) no application has been made under section 34V(1) for approval of attachment of the person to a principal intermediary within 90 days after the date on which the revocation under subsection (2)(a) takes effect; or(b) such an application has been made within 90 days after the date on which the revocation under subsection (2)(a) takes effect, and the Authority has rejected the application. Editorial Note: This section has effect subject to section 9(3) of Schedule 5B in its application to a person who, by virtue of section 5(2) or 6(2) of that Schedule, is regarded as being— (a) registered as a subsidiary intermediary; and (b) approved as being attached to another person regarded as being registered as a principal intermediary. 34ZG. Subsidiary intermediary without principal intermediary (1) This section applies if—(a) a person is a subsidiary intermediary attached to a principal intermediary; and(b) the principal intermediary intends to withdraw the consent to the person being an intermediary for carrying on regulated activities for the principal intermediary.(2) A withdrawal of the consent takes effect on—(a) the date on which the principal intermediary gives the Authority a notice in the specified form of the withdrawal; or(b) if a later date is specified in such a notice as the date on which the withdrawal is to take effect, that later date.(3) The approval of the attachment of the person to the principal intermediary is revoked on the date on which the withdrawal takes effect.(4) Where the person is not approved as being attached to any principal intermediary after a revocation under subsection (3), the Authority may revoke the registration of the person as a subsidiary intermediary if—(a) no application has been made under section 34V(1) for approval of attachment of the person to another principal intermediary within 90 days after the date on which the revocation under subsection (3) takes effect; or(b) such an application has been made within 90 days after the date on which the revocation under subsection (3) takes effect, and the Authority has rejected the application. 34ZH. Subsidiary intermediary whose principal intermediary having registration revoked (1) This section applies if—(a) a person is a subsidiary intermediary attached to another person who is a principal intermediary; and(b) the registration of that other person as a principal intermediary is revoked under this Part.(2) The approval of the attachment of the person to that other person is revoked at the time of that revocation.(3) Where the person is not approved as being attached to any principal intermediary after a revocation under subsection (2), the Authority may revoke the registration of the person as a subsidiary intermediary if—(a) no application has been made under section 34V(1) for approval of attachment of the person to another principal intermediary within 90 days after the date on which the revocation under subsection (2) takes effect; or (b) such an application has been made within 90 days after the date on which the revocation under subsection (2) takes effect, and the Authority has rejected the application. 34ZI. Other change in relation to subsidiary intermediary (1) This section applies if—(a) there is a change in the name of a subsidiary intermediary;(b) there is a change in the address or any contact details of a subsidiary intermediary;(c) a subsidiary intermediary—(i) acquires any qualification as a Type B regulatee;(ii) ceases to be a Type B regulatee of any industry regulator; or(iii) has any qualification as a Type B regulatee of an industry regulator suspended; or(d) a subsidiary intermediary ceases to be the responsible officer of a principal intermediary.(2) The subsidiary intermediary must give the Authority a notice in writing of the change, acquisition, cessation or suspension within 7 working days after it occurs.(3) A person who, without reasonable excuse, contravenes subsection (2), commits an offence and is liable to a fine at level 5. 34ZJ. Responsible officer no longer attached to principal intermediary (1) This section applies if—(a) an individual is a responsible officer of a principal intermediary; and(b) the approval of the attachment of the individual to the principal intermediary is revoked or suspended under this Part.(2) The approval of the individual as a responsible officer of the principal intermediary—(a) in the case of a revocation of the approval of the attachment, is revoked at the time of that revocation; or(b) in the case of a suspension of the approval of the attachment, is suspended for the period during which that suspension is in force. 34ZK. Responsible officer ceasing to have sufficient authority within principal intermediary etc. (1) This section applies to an individual who is a responsible officer of a principal intermediary.(2) The Authority may revoke the approval of the individual as a responsible officer of the principal intermediary if the Authority is satisfied that the individual has ceased to have sufficient authority within the principal intermediary, or to be provided with sufficient resources or support, for carrying out specified responsibilities in relation to the principal intermediary.(3) The power under subsection (2) is not exercisable unless, before exercising the power, the Authority—(a) has given the individual a notice in writing of its intention to do so and the reasons for doing so; and(b) has given the individual an opportunity to make oral or written representations, or both, on those reasons.(4) A notice under subsection (3)(a) must also include a statement describing—(a) the right of the individual to make representations; and(b) how and when the individual may make representations. Division 6 Conduct and Other Requirements for Intermediaries and Responsible Officers 34ZL. Conduct requirements for registered intermediary (1) When carrying on a regulated activity, a principal intermediary or a subsidiary intermediary attached to a principal intermediary—(a) must act honestly, fairly, in the best interests of the client, and with integrity;(b) must exercise a level of care, skill and diligence that may reasonably be expected of a prudent person who is carrying on the regulated activity; (c) may advise only on matters for which the principal or subsidiary intermediary (as the case may be) is competent to advise;(d) must have such regard to the client’s particular circumstances as is necessary for ensuring that the regulated activity is appropriate to the client;(e) must make such disclosure of information to the client as is necessary for the client to be sufficiently informed for the purpose of making any material decision;(f) must use best endeavours to avoid a conflict between the interests of the principal or subsidiary intermediary (as the case may be) and the interests of the client and, in the case of such a conflict, must disclose the conflict to the client;(g) must ensure that client assets are promptly and properly accounted for; and(h) must comply with other requirements that are prescribed by the rules.(2) A principal intermediary must keep such records of activities carried out by the principal intermediary, and of those carried out by every subsidiary intermediary attached to the principal intermediary, as may be necessary for enabling the frontline regulator of the principal intermediary to ascertain—(a) whether or not the principal intermediary has complied with subsection (1); and(b) whether or not every subsidiary intermediary attached to the principal intermediary has complied with subsection (1).(3) A principal intermediary—(a) must establish and maintain proper controls and procedures for securing compliance by the principal intermediary, and by each subsidiary intermediary attached to the principal intermediary, with this Part;(b) must use the principal intermediary’s best endeavours to secure observance by subsidiary intermediaries attached to the principal intermediary of the controls and procedures established under paragraph (a);(c) must ensure that the responsible officer has sufficient authority within the principal intermediary for carrying out specified responsibilities in relation to the principal intermediary; and(d) must provide the responsible officer with sufficient resources and support for carrying out specified responsibilities in relation to the principal intermediary.(4) In this section, a reference to a client of a principal intermediary, or a subsidiary intermediary attached to a principal intermediary, when carrying on a regulated activity, is a reference to—(a) a person whom the principal or subsidiary intermediary invites or induces, or attempts to invite or induce, to make a material decision; or(b) a person to whom the principal or subsidiary intermediary gives regulated advice. 34ZM. Conduct requirements for responsible officer A responsible officer of a principal intermediary must use his or her best endeavours to carry out specified responsibilities in relation to the principal intermediary. 34ZN. Annual fees (1) A person who is a registered intermediary must pay to the Authority for every chargeable period an annual fee of the amount prescribed by the regulations. The fee for a chargeable period must be paid within 1 month after the first day of the chargeable period.(2) If a person contravenes subsection (1), the person must pay to the Authority an additional fee of an amount equal to 10% of the annual fee that was unpaid on the date of the contravention.(3) The Authority may suspend the registration of a person as a registered intermediary for a period, or until the occurrence of an event, determined by the Authority if the person fails to pay to the Authority the annual fee for a chargeable period to which subsection (1) applies, or any additional fee payable under subsection (2) in relation to that annual fee, within 3 months after the first day of the chargeable period.(4) The power under subsection (3) is not exercisable unless the Authority has, by notice in writing given to the registered intermediary at least 15 working days before the suspension is to take effect, informed the registered intermediary of the contents of this section.(5) Where the Authority suspends the registration of a person as a registered intermediary under subsection (3) for failing to pay an annual fee or additional fee, the Authority may revoke that registration if the person fails to pay to the Authority the annual fee or additional fee—(a) within 30 days after the suspension takes effect; or(b) within any longer period that the Authority may specify in a notice in writing given to the registered intermediary.(5A) Subsection (5B) applies if—(a) a person (Party A) is a subsidiary intermediary attached to another person who is a principal intermediary; and(b) the registration of Party A as such a subsidiary intermediary is revoked under subsection (5) (subsection (5) revocation). (Added 40 of 2021 s. 28)(5B) The approval of the attachment of Party A to that other person is revoked at the time the subsection (5) revocation takes effect. (Added 40 of 2021 s. 28)(6) The Authority—(a) may specify a date for the purposes of this section; and(b) must publish the date in any manner that it considers appropriate.(7) In this section— chargeable period (收費期), in relation to a person who is a registered intermediary, means— (a) the period beginning on the date of the registration of the person as such registered intermediary and ending immediately before the specified date next following; or (b) each successive period of 12 months; specified date (指明日期) means the date specified by the Authority under subsection (6)(a). 34ZO. Annual return (1) A person who is a registered intermediary must deliver to the Authority for every reporting period a return in the specified form. The return for a reporting period must be delivered within 1 month after the last day of the reporting period.(2) Subsection (1) applies to a reporting period that begins on or after the date of the registration of the person as such registered intermediary.(3) The Authority may suspend the registration of the person as a registered intermediary for a period, or until the occurrence of an event, determined by the Authority if the person fails to deliver to the Authority the return for a reporting period to which subsection (1) applies within 3 months after the last day of the reporting period.(4) The power under subsection (3) is not exercisable unless the Authority has, by notice in writing given to the registered intermediary at least 15 working days before the suspension is to take effect, informed the registered intermediary of the contents of this section.(5) Where the Authority suspends the registration of a person as a registered intermediary under subsection (3) for failing to deliver a return, the Authority may revoke that registration if the person has not delivered to the Authority the return—(a) within 30 days after the suspension takes effect; or(b) within any longer period that the Authority may specify in a notice in writing given to the registered intermediary.(5A) Subsection (5B) applies if—(a) a person (Party A) is a subsidiary intermediary attached to another person who is a principal intermediary; and(b) the registration of Party A as such a subsidiary intermediary is revoked under subsection (5) (subsection (5) revocation). (Added 40 of 2021 s. 29)(5B) The approval of the attachment of Party A to that other person is revoked at the time the subsection (5) revocation takes effect. (Added 40 of 2021 s. 29)(6) The Authority—(a) may specify a date for the purposes of this section; and(b) must publish the date in any manner that it considers appropriate.(7) In this section— reporting period (報告期) means— (a) a period of 12 months beginning on the date specified by the Authority under subsection (6)(a); or (b) each successive period of 12 months. 34ZP. Continuing training (1) The Authority may, in relation to individuals who are subsidiary intermediaries or a class of subsidiary intermediaries, specify—(a) the training that is to be undertaken by those individuals; and(b) the time within which the training is to be completed by those individuals, as the Authority considers necessary for ensuring that those individuals will be able to comply with the performance requirements.(2) If the Authority is satisfied that an individual has failed to complete the training specified under subsection (1)(a) within the time specified under subsection (1)(b), the Authority may give the individual a notice in writing requiring the individual to complete the training within 30 days beginning on the date on which the notice is given or any longer period specified in the notice.(3) The Authority may suspend the registration of an individual as a subsidiary intermediary for a period, or until the occurrence of an event, determined by the Authority, if the Authority is satisfied that the individual has failed to comply with a notice given under subsection (2).(4) If, within 30 days after the suspension takes effect, the individual has not complied with the requirement set out in the notice given under subsection (2), the Authority may revoke the registration of the person as a subsidiary intermediary.(5) Subsection (6) applies if—(a) an individual is a subsidiary intermediary attached to another person who is a principal intermediary; and(b) the registration of the individual as such a subsidiary intermediary is revoked under subsection (4) (subsection (4) revocation). (Added 40 of 2021 s. 30)(6) The approval of the attachment of the individual to that other person is revoked at the time the subsection (4) revocation takes effect. (Added 40 of 2021 s. 30) Division 7 Inspection and Investigation concerning Failure to Comply with Performance Requirement 34ZQ. Initiating inspection powers for monitoring compliance (1) A frontline regulator of a regulated person—(a) may exercise the powers under section 34ZR for the purpose of ascertaining any matter specified in subsection (2); or(b) may direct a prescribed person to ascertain any specified matter with those powers.(2) The following matters are specified for the purposes of subsection (1)—(a) whether or not the regulated person has complied, or has failed to comply, with the performance requirements;(b) whether or not the regulated person is complying, or is failing to comply, with those requirements;(c) whether or not the regulated person is likely, or is unlikely, to be able to comply with those requirements.(3) If a frontline regulator directs a person under subsection (1)(b) to ascertain any specified matter—(a) the frontline regulator must provide the person with a copy of the direction; and(b) the person must, before imposing a requirement under section 34ZR on another person, produce a copy of the direction to that other person.(4) Even though a frontline regulator has directed a person under subsection (1)(b) to ascertain any specified matter, the frontline regulator may still exercise the powers under section 34ZR for the purpose of ascertaining the specified matter. 34ZR. Inspection powers (1) An inspector—(a) may enter at any reasonable time any place of business of the regulated person;(b) may inspect any business record of the regulated person;(c) may make copies or otherwise record details of any business record of the regulated person; and(d) may make inquiries of the regulated person, or a person specified in subsection (5)—(i) concerning any business record of the regulated person; or(ii) concerning any transaction or activity that was undertaken in the course of, or may affect, the business conducted by the regulated person.(2) In exercising a power under subsection (1)(b) or (c), the inspector may require the regulated person, or a person specified in subsection (5)—(a) to give the inspector access to any business record of the regulated person;(b) to produce to the inspector, within the time and at the place specified in the requirement, any business record of the regulated person; and(c) to answer any question regarding any business record of the regulated person.(3) In exercising a power under subsection (1)(d), the inspector may require the regulated person, or the specified person—(a) to give the inspector access to any business record of the regulated person;(b) to produce to the inspector, within the time and at the place specified in the requirement, any business record of the regulated person; and(c) to answer any question raised for the purposes of subsection (1)(d).(4) The power under subsection (1)(d) or (2) is not exercisable in relation to a specified person unless the inspector has reasonable cause to believe that the information or record sought under that subsection cannot be obtained by exercising the power in relation to the regulated person.(5) The person specified for the purposes of subsections (1)(d) and (2) is a person whom the inspector has reasonable cause to believe—(a) has information relating to any business record of the regulated person;

or(b) is in possession of any business record of the regulated person.(6) If a person gives an answer in compliance with a requirement imposed under subsection (1), (2) or (3), the inspector may, in writing, require the person to verify, within the time specified in the requirement, the answer by a statutory declaration.(7) If, for the reason that the information concerned is not within the person’s knowledge or possession, a person does not give any answer in compliance with a requirement imposed under subsection (1), (2) or (3), the inspector may, in writing, require the person to verify, within the time specified in the requirement, that reason and fact by a statutory declaration.(8) This section is subject to section 34ZZB(1).(9) In this section—business record (業務紀錄), in relation to a regulated person, means any record or document relating to—(a) the business conducted by the regulated person; or(b) any transaction or activity that was undertaken in the course of, or may affect, the business conducted by the regulated person. 34ZS. Inspection powers exercisable in relation to former regulated person (1) An industry regulator may exercise the powers under section 34ZR for the purpose of ascertaining whether or not a person who was a regulated person of which the industry regulator was formerly the frontline regulator has complied, or has failed to comply, with the performance requirements at any time during the period the industry regulator was the frontline regulator of the person.(2) An industry regulator may direct any prescribed person to ascertain, with those powers, whether or not a person who was a regulated person of which the industry regulator was formerly the frontline regulator has complied, or has failed to comply, with the performance requirements at any time during the period the industry regulator was the frontline regulator of the person.(3) This Part is to be construed accordingly. 34ZT. Initiating investigation powers for suspected non-compliance (1) If a frontline regulator of a regulated person has reasonable cause to believe that the regulated person may have failed to comply with a performance requirement, the frontline regulator—(a) may exercise the powers under section 34ZU for the purpose of investigating the failure or the question whether or not there has been such a failure; or(b) may in writing direct a prescribed person to investigate, with those powers, the failure or the question whether or not there has been such a failure.(2) If a frontline regulator directs a person under subsection (1)(b) in relation to an investigation—(a) the frontline regulator must provide the person with a copy of the direction; and(b) the person must, before imposing a requirement under section 34ZU on another person, produce a copy of the direction to that other person.(3) Before a frontline regulator, or a person directed by a frontline regulator under subsection (1)(b), imposes a requirement under section 34ZU on another person who is a Type A or Type B regulatee of an industry regulator that is not the frontline regulator, the frontline regulator or the person so directed must consult the industry regulator.(4) Even though a frontline regulator has directed a person under subsection (1)(b) in relation to an investigation, the frontline regulator may still exercise the powers under section 34ZU for the purpose of the investigation. 34ZU. Investigation powers (1) An investigator may, in writing, require a person specified in subsection (2)—(a) to produce, within the time and at the place specified in the requirement, any record or document specified in the requirement—(i) that is or may be relevant to any matter under investigation; and(ii) that is in the person’s possession;(b) to attend before the investigator at the time and place specified in the requirement, and answer any question relating to any matter under investigation that the investigator may raise with the person;(c) to respond to any written question relating to any matter under investigation that the investigator may raise with the person; or(d) to give the investigator any assistance in connection with the investigation that the person is reasonably able to give.(2) The person specified for the purposes of subsection (1) is—(a) a person whom the frontline regulator has reasonable cause to believe may have failed to comply with a performance requirement; or(b) a person whom the investigator has reasonable cause to believe—(i) to be in possession of any record or document that contains, or that is likely to contain, information relevant to any matter under investigation; or(ii) to be otherwise in possession of such information.(3) If a person produces a record or document in compliance with a requirement imposed under subsection (1)(a), the investigator may require the person to give an explanation or further particulars in respect of the record or document.(4) If a person gives any answer, response, explanation or particulars in compliance with a requirement imposed under subsection (1) or (3), the investigator may, in writing, require the person to verify within the time specified in the requirement, the answer, response, explanation or particulars by a statutory declaration.(5) If, for the reason that the information concerned is not within the person’s knowledge or possession, a person does not give any answer, response, explanation or particulars in compliance with a requirement imposed under subsection (1) or (3), the investigator may, in writing, require the person to verify, within the time specified in the requirement, that reason and fact by a statutory declaration.(6) This section is subject to section 34ZZB(2). 34ZV. Investigation powers exercisable in relation to former regulated persons (1) If an industry regulator has reasonable cause to believe that a person who was a regulated person of which the industry regulator was formerly a frontline regulator may have failed to comply with a performance requirement at any time during the period the industry regulator was the frontline regulator of the person—(a) the industry regulator may exercise the powers under section 34ZU for the purpose of investigating the failure or the question whether or not there has been such a failure; or(b) the industry regulator may direct a prescribed person to investigate, with those powers, the failure or the question whether or not there has been such a failure.(2) This Part is to be construed accordingly. Division 8 Disciplinary Order for Failure to Comply with Performance Requirements 34ZW. Authority may make disciplinary order (1) The Authority may make any disciplinary order under subsection (3), (4), (5) or (6) against a regulated person if the Authority is satisfied that the regulated person has failed to comply with a performance requirement.(2) The Authority may make any disciplinary order under subsection (3) or (4) against a regulated person if the regulated person is convicted of an offence under this Ordinance or any subsidiary legislation under this Ordinance.(3) If the regulated person is a registered intermediary—(a) the Authority—(i) may order that the registration of the person as such registered intermediary be revoked; and(ii) may order that the person be disqualified from being registered as an intermediary for carrying on regulated activities, or as an intermediary for carrying on regulated activities for a principal intermediary to which the person is to be attached, for a period determined by the Authority; or (b) the Authority may order that the registration of the person as such registered intermediary be suspended for a period determined by the Authority.(3A) Subsection (3B) applies if—(a) a regulated person is a subsidiary intermediary attached to another person who is a principal intermediary; and(b) the registration of the regulated person as such a subsidiary intermediary is revoked under subsection (3)(a)(i) (subsection (3) revocation). (Added 40 of 2021 s. 31)(3B) The approval of the attachment of the regulated person to that other person is revoked at the time the subsection (3) revocation takes effect. (Added 40 of 2021 s. 31)(4) If the regulated person is a responsible officer of a principal intermediary—(a) the Authority—(i) may order that the approval of the individual as such responsible officer be revoked; and(ii) may order that the person be disqualified from being approved as an officer with specified responsibilities in relation to a principal intermediary for a period determined by the Authority; or(b) the Authority may order that the approval of the individual as such responsible officer be suspended for a period determined by the Authority. (5) The Authority may order that the regulated person—(a) be publicly reprimanded; or(b) be privately reprimanded.(6) The Authority may order the regulated person to pay a pecuniary penalty not exceeding whichever is the greater amount of the following—(a) $10,000,000;(b) 3 times the amount of the profit gained or loss avoided by the regulated person as a result of the failure.(7) A power to make a disciplinary order against a regulated person under subsection (1) for a failure to comply with a performance requirement is only exercisable if—(a) the frontline regulator of the regulated person—(i) has exercised the powers under section 34ZU for the purpose of investigating the failure or the question whether or not there has been such a failure; or(ii) has directed a person under section 34ZT(1)(b) to investigate, with those powers, the failure or the question whether or not there has been such a failure;(b) in considering the matters specified in subsection (8), the Authority has regard to the information—(i) obtained by the frontline regulator or such a person from the investigation; and(ii) disclosed to the Authority for the purpose of assisting or enabling the Authority to consider those matters; and(c) the Authority complies with section 34ZZ before making the disciplinary order.(8) The matters specified for the purposes of subsection (7)(b) are—(a) whether the regulated person has failed to comply with the performance requirement; and(b) what disciplinary order is to be made against the regulated person.(9) If the Authority exercises a power under subsection (1) or (2) to make a disciplinary order against a regulated person, the Authority may disclose to the public details of the decision, including the reasons for it and any material facts of the case. (10) The Authority must pay any pecuniary penalty paid to or recovered by it under a disciplinary order into the general revenue.(11) In this section, a reference to a person being disqualified from registration or approval, or a registration or approval being suspended, for a period determined by the Authority includes the person being so disqualified, or the registration or approval being suspended, until the occurrence of an event determined by the Authority. 34ZX. When disciplinary order takes effect (1) This section applies if the Authority makes a disciplinary order against a regulated person.(2) If, before the expiry of the period prescribed by the regulations for making an appeal, the regulated person gives the Authority a notice in writing that the person will not appeal against the decision, the disciplinary order takes effect when the notice is given.(3) If the regulated person does not appeal against the decision within the period prescribed by the regulations for making an appeal, the disciplinary order takes effect when that period expires.(4) If the regulated person appeals against the decision—(a) where the appeal is withdrawn, the disciplinary order takes effect at the time of the withdrawal;(b) where the decision is upheld on appeal, the disciplinary order takes effect at the time it is upheld; or(c) where the decision is varied on appeal, the disciplinary order as varied takes effect at the time of the variation.(5) Despite subsections (2), (3) and (4), if the Authority considers appropriate, the disciplinary order takes effect at a time determined by the Authority. The Authority must give the regulated person a notice in writing of the time so determined.(6) In deciding whether or not a disciplinary order should take effect at a time determined by the Authority, the Authority must have regard—(a) to the maintenance of public confidence—(i) in the operation of registered schemes; and(ii) in the operation of the retirement schemes industry in Hong Kong; and(b) to the public interest. 34ZY. Further action by Authority (1) If the Authority is satisfied that a regulated person has failed to comply with a performance requirement and intends to make a disciplinary order against a regulated person under section 34ZW, it may, by agreement with the regulated person, take any further action, whether in place of or in addition to any disciplinary order, in respect of the regulated person that it considers appropriate in the circumstances of the case.(2) A power to take further action in respect of a regulated person under subsection (1) for a failure to comply with a performance requirement is only exercisable if—(a) the frontline regulator of the regulated person—(i) has exercised the powers under section 34ZU for the purpose of investigating the failure or the question whether or not there has been such a failure; or(ii) has directed a person under section 34ZT(1)(b) to investigate, with those powers, the failure or the question whether or not there has been such a failure;(b) in considering the matters specified in subsection (3), the Authority has regard to the information—(i) obtained by the frontline regulator or such a person from the investigation; and(ii) disclosed to the Authority for the purpose of assisting or enabling the Authority to consider those matters;(c) the Authority considers it appropriate to exercise the power, having regard to—(i) the maintenance of public confidence—(A) in the operation of registered schemes; and(B) in the operation of the retirement schemes industry in Hong Kong; and(ii) the public interest; and(d) subject to subsection (4), the Authority complies with section 34ZZ before taking the further action.(3) The matters specified for the purposes of subsection (2)(b) are—(a) whether the regulated person has failed to comply with the performance requirement; and(b) what further action is to be taken in respect of the regulated person.(4) The Authority is not required to comply with section 34ZZ(2)(b) for the purposes of subsection (2)(d) if the regulated person so agrees. In that case, section 34ZZ(3)(c) does not apply. 34ZZ. Procedural requirement for Authority before making disciplinary order or taking further action (1) This section applies if the Authority forms a preliminary view that it should make a disciplinary order against, or take further action under section 34ZY in respect of, the regulated person.(2) The Authority—(a) must give the regulated person a notice in writing of the preliminary view and the reasons for it; and(b) must give the regulated person an opportunity to make oral or written representations, or both, on the preliminary view and the reasons for it.(3) A notice under subsection (2)(a) must also include—(a) particulars of the disciplinary order or further action proposed to be made or taken;(b) particulars of the time at which the disciplinary order is proposed to take effect in accordance with section 34ZX; and(c) a statement describing—(i) the right of the regulated person to make representations; and(ii) how and when the regulated person may make representations.(4) For the purposes of subsection (3)(a), a notice under subsection (2)(a) must include—(a) for a disciplinary order under section 34ZW(3) or (4), particulars of the duration and terms of the proposed revocation, disqualification or suspension;(b) for a disciplinary order under section 34ZW(5), particulars of the terms of the proposed reprimand; or(c) for a disciplinary order under section 34ZW(6), the amount of the proposed pecuniary penalty and the proposed period within which that penalty must be paid. 34ZZA. Application of disciplinary powers in relation to former regulated person (1) This section applies to a power that is exercisable by the Authority under section 34ZW or 34ZY in relation to a person who is a regulated person, in connection with the person’s failure to comply with a performance requirement.(2) The power is also exercisable by the Authority in relation to the person if the person was a regulated person at the time of the failure, regardless of whether the person is a regulated person when the power is being exercised.(3) This Part is to be construed accordingly. Division 9 Miscellaneous Subdivision 1 Provisions Supplementary to Divisions 3 and 7 34ZZB. Inspection and investigation powers in relation to certain entity (1) An inspector has no power under section 34ZR to require an entity specified in subsection (3) to disclose any information, or to produce any record or document, relating to the affairs of a customer of the entity—(a) unless the inspector is a relevant authority of the entity; or(b) unless the inspector is satisfied that the disclosure or production is necessary for the purpose of ascertaining any matter specified in section 34ZQ(2) and so certifies in writing to the entity.(2) An investigator has no power under section 34P or 34ZU to require an entity specified in subsection (3) to disclose any information, or to produce any record or document, relating to the affairs of a customer of the entity—(a) unless the investigator is a relevant authority of the entity; or(b) unless—(i) the customer is a person whom the investigator has reasonable cause to believe may be able to give information relevant to the matter under investigation; and(ii) the investigator is satisfied that the disclosure or production is necessary for the purpose of the investigation and so certifies in writing to the entity.(3) The entity is—(a) an authorized financial institution;(b) a licensed corporation as defined by section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance (Cap. 571);(c) an insurer authorized under the Insurance Ordinance (Cap. 41); (Amended 12 of 2015 s. 125)(d) a licensed insurance agency as defined by section 2(1) of the Insurance Ordinance (Cap. 41); or (Replaced 12 of 2015 s. 125)(e) a licensed insurance broker company as defined by section 2(1) of the Insurance Ordinance (Cap. 41). (Replaced 12 of 2015 s. 125)(4) In this section— relevant authority (有關主管當局)— (a) in relation to an entity specified in subsection (3)(a), means—(i) the Monetary Authority; or(ii) a person directed by the Monetary Authority under section 34O(2)(b), 34ZQ(1)(b) or 34ZT(1)(b); (b) in relation to an entity specified in subsection (3)(b), means—(i) the Securities and Futures Commission; or(ii) a person directed by the Securities and Futures Commission under section 34O(2)(b), 34ZQ(1)(b) or 34ZT(1)(b); or (c) in relation to an entity specified in subsection (3)(c), (d) or (e), means—(i) the Insurance Authority; or(ii) a person directed by the Insurance Authority under section 34O(2)(b), 34ZQ(1)(b) or 34ZT(1)(b). 34ZZC. Offences relating to sections 34P, 34ZR and 34ZU (1) A person commits an offence if the person, without reasonable excuse, fails to comply with a specified requirement imposed on the person.(2) A person commits an offence if the person, with intent to defraud, fails to comply with a specified requirement imposed on the person. (3) A person commits an offence if—(a) in purported compliance with a specified requirement imposed on the person, the person produces any record or document, or gives an answer or response, or gives any explanation or particulars, that are false or misleading in a material respect; and(b) the person knows that, or is reckless as to whether, the record or document, or the answer or response, or the explanation or particulars, are false or misleading in a material respect.(4) A person commits an offence if, in purported compliance with a specified requirement imposed on the person, the person, with intent to defraud, produces any record or document, or gives an answer or response, or gives any explanation or particulars, that are false or misleading in a material respect.(5) A person commits an offence if, being an officer or employee of a company, the person, with intent to defraud—(a) causes or allows the company to fail to comply with a specified requirement imposed on the company; or(b) causes or allows the company, in purported compliance with a specified requirement imposed on the company, to produce any record or document, or give an answer or response, or give any explanation or particulars, that are false or misleading in a material respect.(6) A person is not excused from complying with a requirement imposed under section 34P or 34ZU on the person only on the ground that to do so might tend to incriminate the person.(7) Despite anything in this Ordinance, no criminal proceedings may be instituted against a person under subsection (1), (2), (3), (4) or (5) in respect of a conduct if—(a) proceedings have previously been instituted against the person for the purposes of section 34ZZD(3)(b) in respect of the same conduct; and (b) those proceedings remain pending, or by reason of the previous institution of those proceedings, no proceedings may again be lawfully instituted against that person for the purposes of section 34ZZD(3)(b) in respect of the same conduct.(8) A person who commits an offence under subsection (1) is liable—(a) on conviction on indictment to a fine of $200,000 and to imprisonment for 1 year; or(b) on summary conviction to a fine at level 5 and to imprisonment for 6 months.(9) A person who commits an offence under subsection (3) is liable—(a) on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.(10) A person who commits an offence under subsection (2), (4) or (5) is liable—(a) on conviction on indictment to a fine of $1,000,000 and to imprisonment for 7 years; or(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.(11) In this section—specified requirement (指明要求) means a requirement imposed under section 34P, 34ZR or 34ZU. 34ZZD. Court to inquire into failure to comply with inspection or investigation requirement (1) A person specified in subsection (2) may, by originating summons, apply to the Court for an inquiry into any person’s failure to comply with a requirement imposed under section 34P, 34ZR or 34ZU.(2) The person specified for the purposes of subsection (1) is—(a) in the case of section 34P or 34ZU, an investigator; or(b) in the case of section 34ZR, an inspector.(3) On such application, the Court may—(a) on being satisfied that there is no reasonable excuse for the person not to comply with the requirement, order the person to comply with the requirement within the period specified by the Court; and(b) on being satisfied that the failure was without reasonable excuse, punish the person, and any other person knowingly involved in the failure, in the same manner as if the person and, if applicable, that other person had been guilty of contempt of court.(4) An originating summons under subsection (1) is to be in Form No. 10 in Appendix A to the Rules of the High Court (Cap. 4 sub. leg. A).(5) Despite anything in this Ordinance, no proceedings may be instituted against a person for the purposes of subsection (3)(b) in respect of any conduct if—(a) criminal proceedings have previously been instituted against the person under section 34ZZC(1), (2), (3), (4) or (5) in respect of the same conduct; and(b) those criminal proceedings remain pending, or by reason of the previous institution of those criminal proceedings, no criminal proceedings may again be lawfully instituted against that person under section 34ZZC(1), (2), (3), (4) or (5) in respect of the same conduct. 34ZZE. Use of incriminating evidence in proceedings (1) If an investigator requires a person to give an answer or response to any question, or to give an explanation or further particulars, under section 34P or 34ZU, the investigator must ensure that the person has first been informed or reminded of the limitations imposed by subsection (2) on the admissibility in evidence of—(a) the requirement; and(b) the question and the answer or response, or the explanation or particulars.(2) Despite anything in this Part, if—(a) an investigator requires a person to give an answer or response to any question, or to give an explanation or further particulars, under section 34P or 34ZU; and(b) the answer or response, or the explanation or particulars, might tend to incriminate the person, and the person so claims before giving the answer or response or giving the explanation or particulars, the requirement, as well as the question and the answer or response, or the explanation or particulars, are not admissible in evidence against the person in criminal proceedings in a court of law other than those specified in subsection (3).(3) The criminal proceedings are those in which the person is charged with an offence under section 34ZZC(1), (2), (3), (4) or (5), or under Part V of the Crimes Ordinance (Cap. 200), or for perjury, in respect of the answer or response, or the explanation or particulars. 34ZZF. Magistrate’s warrant (1) If a magistrate is satisfied on information on oath laid by a person specified in subsection (2) that there are reasonable grounds to suspect that there is, or is likely to be, on premises specified in the information any record or document that may be required to be produced under section 34P, 34ZR or 34ZU, the magistrate may issue a warrant authorizing a person set out in the warrant, and such other person as may be necessary to assist in the execution of the warrant—(a) to enter the premises, if necessary by force, at any time within the period of 7 days beginning on the date of the warrant; and(b) to search for, seize and remove any record or document that the person so set out has reasonable cause to believe may be required to be produced under section 34P, 34ZR or 34ZU, as the case may be.(2) The person specified for the purposes of subsection (1) is—(a) in the case of section 34P or 34ZU, an investigator; or(b) in the case of section 34ZR, an inspector.(3) If a relevant person has reasonable cause to believe that another person on the premises is employed, or engaged to provide a service, in connection with a business that is or has been conducted on the premises, the relevant person may require that other person to produce for examination any record or document—(a) that is in the possession of that other person; and(b) that the relevant person has reasonable cause to believe may be required to be produced under section 34P, 34ZR or 34ZU, as the case may be.(4) A relevant person may, in relation to any record or document required to be produced under subsection (3)—(a) prohibit any person found on the premises from—(i) removing the record or document from the premises;(ii) erasing anything from, adding anything to or otherwise altering anything in, the record or document; or(iii) otherwise interfering in any manner with, or causing or permitting any other person to interfere with, the record or document; or(b) take any other step that appears to the relevant person to be necessary for—(i) preserving the record or document; or(ii) preventing interference with the record or document.(5) Any record or document removed under this section may be retained for—(a) a period not exceeding 6 months beginning on the day of its removal; or(b) if the record or document is or may be required for any criminal proceedings or for any other proceedings under this Part, such longer period as may be necessary for the purpose of those proceedings.(6) If a relevant person removes any record or document under this section, the relevant person—(a) must as soon as practicable after the removal give a receipt for the record or document; and(b) may permit any person who would be entitled to inspect the record or document but for the removal—(i) to inspect it; and(ii) to make copies or otherwise record details of it at all reasonable times.(7) Section 102 of the Criminal Procedure Ordinance (Cap. 221) applies to any property that has by virtue of this section come into the possession of an investigator or inspector, as it applies to property that has come into the possession of the police.(8) A person commits an offence if the person—(a) without reasonable excuse, fails to comply with a requirement or prohibition under subsection (3) or (4); or(b) obstructs a relevant person in the exercise of any power conferred by subsection (3) or (4).(9) A person who commits an offence under subsection (8) is liable—(a) on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.(10) In this section—relevant person (有關人士) means a person authorized by a warrant issued under subsection (1) to carry out the acts mentioned in paragraphs (a) and (b) of that subsection. Subdivision 2 Other Miscellaneous Provisions 34ZZG. Registration or approval revocable on request The Authority may revoke the registration of a person as a principal intermediary or subsidiary intermediary, or the approval of the attachment of a person to a principal intermediary, or the approval of an individual as a responsible officer of a principal intermediary, at the request of the person or individual. 34ZZH. Notice of revocation, suspension, etc. (1) This section applies if the Authority—(a) suspends or revokes the registration of a person as a registered intermediary under Division 5 or 6;(b) revokes the approval of a person as a responsible officer of a principal intermediary under section 34ZK; or(c) makes a disciplinary order against a person under section 34ZW.(2) The Authority must give the person a notice in writing of—(a) the suspension or revocation, or the disciplinary order; and(b) a statement of reasons for the suspension or revocation, or for the disciplinary order. 34ZZI. Effect of revocation and suspension (1) A revocation or suspension under this Part of the registration of a person as a registered intermediary does not affect any agreement, transaction or arrangement entered into by the person as such registered intermediary.(2) A revocation or suspension under this Part of the approval of the attachment of a person to a principal intermediary does not affect any agreement, transaction or arrangement entered into by the person as a subsidiary intermediary attached to the principal intermediary. 34ZZJ. Payment by Authority to industry regulator in relation to expenditure or cost for services (1) The Authority may pay to an industry regulator an amount that in the Authority’s opinion represents the expenditure or cost incurred, or likely to be incurred, by the industry regulator in providing the services or performing the functions under this Part.(2) A payment under subsection (1) is to be paid from the MPFA Administration Account. 34ZZK. Transitional and saving provisions Schedule 5B has effect. Part 5 Appeals (Format changes—E.R. 1 of 2013) 35. Appeal Board (1) Any person aggrieved by any decision specified in Schedule 6 may appeal to an Appeal Board called in English the “Mandatory Provident Fund Schemes Appeal Board” and in Chinese “強制性公積金計劃上訴委員會”. An appeal must be made within the period prescribed by the regulations. (Amended 4 of 1998 s. 2)(2) The Chief Executive shall appoint a person to be the Chairman of the Appeal Board and such other person or such number of other persons as he thinks fit to be the Deputy Chairman or Deputy Chairmen of the Appeal Board. (Amended 4 of 1998 s. 2)(3) Subject to subsection (7), the Chairman or any Deputy Chairman shall be appointed for a term of not more than 2 years but may be reappointed.(3A) A person appointed under subsection (2) to be the Chairman of the Appeal Board must be—(a) a person who is eligible for appointment as a judge of the High Court under section 9 of the High Court Ordinance (Cap. 4);(b) a former Justice of Appeal of the Court of Appeal; or(c) a former judge or a former deputy judge of the Court of First Instance. (Added 16 of 2012 s. 14)(4) A person appointed under subsection (2) to be the Deputy Chairman, or one of the Deputy Chairmen, of the Appeal Board must be a solicitor or barrister admitted under the Legal Practitioners Ordinance (Cap. 159). (Amended 16 of 2012 s. 14)(5) The Chief Executive shall appoint a panel of persons whom he considers suitable for appointment under section 36 as members of the Appeal Board. (Amended 4 of 1998 s. 2; 16 of 2012 s. 14)(5A) The panel of persons appointed under subsection (5)—(a) must not include any public officer; and(b) must include—(i) at least 1 but not more than 2 persons who, in the Chief Executive’s opinion, represent the interests of both Type A regulatees and Type B regulatees within the meaning of Part 4A; and(ii) at least 1 but not more than 2 persons who, in the Chief Executive’s opinion, represent the interests of relevant employees. (Added 16 of 2012 s. 14)(6) An appointment under subsection (2) or (5) shall be notified in the Gazette.(7) The Chairman and any Deputy Chairman or person appointed under subsection (5) may at any time resign by notice in writing to the Chief Executive. (Amended 4 of 1998 s. 2)(8) The Chairman and any Deputy Chairman or person appointed under subsection (5) shall be remunerated out of money provided by the Legislative Council for that purpose at a rate that the Financial Secretary may determine.(Amended E.R. 1 of 2013) 36. Constitution and powers of Appeal Board (1) The Appeal Board shall consist of the Chairman or any Deputy Chairman who shall preside at the hearing and such number of persons, not being fewer than 2, from the panel referred to in section 35(5) as the Chairman may appoint to be members of the Appeal Board to hear any appeal.(2) In relation to the hearing of appeals every question before the Appeal Board shall be determined by the opinion of the majority of the members hearing the appeal except a question of law which shall be determined by the Chairman or (where appropriate) the Deputy Chairman and in the case of an equality of votes the Chairman or Deputy Chairman shall have a casting vote.(3) In hearing an appeal the Appeal Board may—(a) receive and consider any material, whether by way of oral evidence, written statements, documents or otherwise, and whether or not it would be admissible in a court of law;(b) by notice in writing signed by the Chairman, summon any person—(i) to produce to it any document that is relevant to the appeal and is in his custody or under his control; or(ii) to appear before it and to give evidence relevant to the appeal;(c) administer oaths and affirmations;(d) require evidence to be given on oath or affirmation;(e) make an award of such sum, if any, in respect of the costs involved in the appeal as is just and equitable in all the circumstances of the case.(4) After hearing an appeal made in respect of any decision specified in Schedule 6 the Appeal Board may uphold, vary or quash that decision and make such consequential orders as may be necessary. 37. Appeal Board’s decision is final Subject to section 39, the determination of an appeal by the Appeal Board or any order as to costs made by the Appeal Board shall be final. 38. Supplementary provisions relating to appeals (1) The procedure and practice of the Appeal Board shall, subject to this Ordinance, be determined by the Chairman.(2) If the Chairman is precluded by illness, absence from Hong Kong or any other cause from exercising his functions, the Chief Executive may appoint any Deputy Chairman to act as Chairman and as such to exercise all the functions of the Chairman during the period of his appointment. (Amended 4 of 1998 s. 2)(3) If a person appointed by the Chairman under section 36(1) to hear an appeal is precluded by illness, absence from Hong Kong or any other cause from exercising his functions, the Chairman may appoint any other person from the panel referred to in section 35(5) to act in his place.(4) At the hearing of an appeal, the appellant is entitled to appear in person or to be represented by any of the following persons—(a) a legal practitioner;(b) if the appellant is a company, any of its officers or employees;(c) if the appellant is a partnership, any of its partners or employees; (d) with the leave of the Appeal Board, any other person. (Replaced 4 of 1998 s. 2)(4A) At the hearing of an appeal, the Authority is entitled to be represented by any of the following persons—(a) the Managing Director;(b) any of the Authority’s employees;(c) a legal practitioner;(d) with the leave of the Appeal Board, any other person. (Added 4 of 1998 s. 2)(5) In relation to any appeal to the Appeal Board, the members of the Appeal Board, the appellant, and any witness, representative or other person appearing before the Appeal Board shall have the same privileges and immunities as they would have if the proceedings were civil proceedings before a court.(6) A sum awarded to the Authority under section 36(3) as costs is recoverable by the Authority in a court of competent jurisdiction as a debt due to the Authority. (Replaced 4 of 1998 s. 2)(7) A sum awarded against the Authority under section 36(3) as costs is recoverable from the Authority in a court of competent jurisdiction as a debt. (Added 4 of 1998 s. 2) 39. Case may be stated for Court of Appeal (1) The Appeal Board may refer any question of law arising in an appeal to the Court of Appeal for determination by way of case stated.(2) On the hearing of the case, the Court of Appeal may either—(a) determine the question stated; or(b) remit the case to the Appeal Board, in whole or in part, for reconsideration in the light of the Court’s determination. (Replaced 4 of 1998 s. 2)(3) Where a case is stated under subsection (1), the Appeal Board shall not determine the relevant appeal before the Court of Appeal determines the relevant point of law. 40. Offences relating to appeal Any person who, without reasonable excuse, refuses or fails—(a) to attend and give evidence when required to do so by the Appeal Board; or(b) to answer truthfully, and completely questions put to him by the Appeal Board; or(c) to produce any document which he is required by the Appeal Board to produce,commits an offence and is liable on summary conviction to a fine at level 4.(Amended 4 of 1998 s. 2) Part 6 Miscellaneous (Format changes—E.R. 1 of 2013) 41. Persons not to disclose certain information (1) A person who obtains information in the performance of functions conferred or imposed by or under this Ordinance— (Amended 40 of 2021 s. 33)(a) must not disclose the information to any other person, unless the disclosure is necessary in order to perform those functions; and(b) must not enable another person to have access to the information, except in so far as that access is necessary to allow that other person to perform functions under or for the purposes of this Ordinance. (Amended 40 of 2021 s. 33)(2) Subsection (1) does not prevent the disclosure of, or the provision of access to, information (not being information contained in a report referred to in section 7C(4)) in accordance with an order of a court or in accordance with a law or a requirement made under a law.(2A) Subsection (1) does not prevent the disclosure of, or the provision of access to, the information by a relevant person (Party A) if—(a) the disclosure or the provision is made to another relevant person (Party B); and(b) the information is, in the opinion of Party A, necessary for Party B’s performance of functions under or for the purposes of this Ordinance. (Added 40 of 2021 s. 33)(2B) Subsection (1) does not prevent the disclosure of, or the provision of access to, the information by a prescribed person (Party C) if—(a) the disclosure or the provision is made to another prescribed person (Party D); and(b) the disclosure or the provision is, in the opinion of Party C, necessary—(i) to assist Party C’s performance of functions under or for the purposes of this Ordinance; or(ii) to facilitate Party D’s performance of functions under or for the purposes of this Ordinance. (Added 40 of 2021 s. 33)(3) A person who, without lawful authority, contravenes subsection (1) commits an offence and is liable on conviction to a fine at level 4.(4) In this section—prescribed person (訂明人士) means—(a) a specified entity;(b) a person employed or engaged under section 6EA(3)(a)(i) by a specified entity;(c) a person to whom a function of a specified entity is delegated or subdelegated; or(d) the Authority;relevant person (相關人士) means—(a) the system operator of an electronic MPF system; or(b) the approved trustee of a registered scheme. (Added 40 of 2021 s. 33)(Replaced 4 of 1998 s. 2) 41A. Supplementary provisions to section 41—disclosure by system operator to approved trustees (1) Subject to subsection (2), section 41(1) does not prevent the system operator of an electronic MPF system from—(a) allowing the approved trustee of a registered scheme to have access to the information obtained by the system operator as described in that section; or(b) otherwise disclosing the information to the approved trustee.(2) Subsection (1) applies only if—(a) the information is to be disclosed by the approved trustee to a person located in a place outside Hong Kong;(b) the person performs in that place functions that correspond to those of the Commissioner of Inland Revenue; and(c) the disclosure by the trustee of the information to the person is for the purpose of complying with the trustee’s reporting obligation under the taxation law of that place.(Added 40 of 2021 s. 34) 41B. Supplementary provisions to section 41—disclosure by persons other than Authority (1) Section 41(1) does not prevent a person (other than the Authority) who obtains information as described in that section from—(a) disclosing the information for the purpose of any criminal proceedings in Hong Kong or an investigation conducted with a view to bringing any such proceedings;(b) disclosing the information in connection with any civil proceedings to which the person is a party or with a view to bringing any such proceedings;(c) disclosing the information for the purposes of sections 50B and 50C of the Inland Revenue Ordinance (Cap. 112); or(d) disclosing the information for seeking advice from, or giving advice by, counsel or a solicitor or other professional adviser acting or proposing to act in a professional capacity in connection with a matter arising under this Ordinance.(2) Section 41(1) does not prevent the system operator of an electronic MPF system from disclosing any information obtained by the system operator as described in that section as a summary compiled from information provided by persons in accordance with this Ordinance.(3) However, subsection (2) applies only if the summary is compiled so as to prevent the identities and businesses of those persons from being ascertained from the summary.(4) Section 41(1) does not prevent a wholly owned subsidiary from disclosing any information obtained by the subsidiary as described in that section if the disclosure is—(a) for the purpose of, or otherwise in connection with, an audit conducted, by the auditor of the subsidiary, for the subsidiary; or(b) for the purpose of enabling the Director of Audit to perform, in relation to the Authority or the subsidiary, a function under section 6PA.(5) Any information disclosed under subsection (1)(c) may be used or disclosed only for the purposes mentioned in that subsection.(6) A person who uses or discloses any information in contravention of subsection (5) commits an offence and is liable on conviction to a fine at level 4.(Added 40 of 2021 s. 34) 42. Authority may disclose certain information despite section 41 (1) Section 41 does not prevent the Authority from doing any of the following with respect to information obtained by it under this Ordinance—(a) disclose the information as a summary compiled from information provided by persons in accordance with this Ordinance but only if the summary is compiled so as to prevent the identities and businesses of those persons from being ascertained from the summary;(b) disclose the information for the purposes of any criminal proceedings in Hong Kong or an investigation conducted with a view to bringing any such proceedings;(c) disclose the information in connection with any civil proceedings to which the Authority is a party or with a view to bringing any such proceedings;(caa) disclose the information for seeking advice from, or giving advice by, counsel or a solicitor or other professional adviser acting or proposing to act in a professional capacity in connection with a matter arising under this Ordinance; (Added 1 of 2015 s. 9)(ca) disclose the information in such form as the Authority considers appropriate but only if the information has been made available to members of the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by section 41; (Added 1 of 2008 s. 37)(d) subject to subsections (1A) and (2), disclose the information to—(i) the Chief Executive;(ii) the Financial Secretary;(iii) the Secretary for Justice;(iv) the Registrar of Occupational Retirement Schemes;(v) the Insurance Authority;(vi) the Monetary Authority;(vii) the Securities and Futures Commission;(viii) the Commissioner of Inland Revenue;(ix) the Privacy Commissioner for Personal Data;(x) the Ombudsman;(xi) the Registrar of Companies;(xii) the Accounting and Financial Reporting Council continued under section 6 of the Accounting and Financial Reporting Council Ordinance (Cap. 588);(Amended L.N. 66 of 2022)(xiii) the Official Receiver appointed under the Bankruptcy Ordinance (Cap. 6);(xiv) a liquidator appointed under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32); or(xv) a person authorized by a person or body specified in subparagraph (i), (ii), (iii), (iv), (v), (vi) or (vii); (Replaced 1 of 2015 s. 9. Amended E.R. 4 of 2019)(e) disclose the information to a body specified in accordance with subsection (4), but only if the Authority—(i) is satisfied that the information will be used only in disciplinary proceedings brought or proposed to be brought against a member of the body; and(ii) considers that the disclosure is appropriate; (Amended 1 of 2008 s. 37)(f) disclose the information with the consent of the person from whom the information was obtained or received and, if the information relates to a different person, with the consent also of the person to whom the information relates; (Added 1 of 2008 s. 37)(g) disclose the information relating to provident fund schemes or constituent funds or approved pooled investment funds, but only if the Authority considers that it could—(i) promote understanding by the public of the retirement scheme industry in Hong Kong and of the benefits, risks and liabilities associated with investing in provident fund schemes or occupational retirement schemes;(ii) promote understanding by the public of the importance of making informed decisions relating to provident fund schemes or occupational retirement schemes, including, in particular, the importance of making informed decisions when choosing registered schemes or investing contributions or accrued benefits;

or(iii) secure an appropriate degree of protection for the public by ensuring that they have sufficient information to help them make informed decisions relating to provident fund schemes or occupational retirement schemes, including, in particular, sufficient information to help them make informed decisions when choosing registered schemes or investing contributions or accrued benefits; (Added 1 of 2008 s. 37. Amended 40 of 2021 s. 35)(h) disclose the information for the purpose of, or otherwise in connection with, an audit as required by section 6P; (Added 40 of 2021 s. 35)(i) disclose the information for the purpose of enabling the Director of Audit to perform, in relation to the Authority or a wholly owned subsidiary, a function under section 6PA. (Added 40 of 2021 s. 35)(1A) The Authority may only disclose information under subsection (1)(d) if it is satisfied that—(a) the disclosure is in the interests of the scheme members concerned;(b) the disclosure is in the public interest; or(c) the disclosure enables the exercise or performance of a function imposed or conferred by law. (Added 1 of 2015 s. 9)(2) The Authority may disclose information under subsection (1) to the Commissioner of Inland Revenue only if it is satisfied that the information is required in order to assist the Commissioner in determining a matter that the Commissioner is required or empowered to determine under the Inland Revenue Ordinance (Cap. 112).(3) Subsection (1) does not authorize the disclosure of information contained in a report referred to in section 7C(4) to a person or body specified in subsection (1)(d) or (e).(4) The Authority may, by notice published in the Gazette, specify a body for the purposes of subsection (1)(e).(5) (Repealed 1 of 2015 s. 9)(5A) The information that may be disclosed under subsection (1)(g) includes (but is not limited to) information relating to—(a) the investment portfolios and investment policies of provident fund schemes, constituent funds or approved pooled investment funds;(b) the investment performances of provident fund schemes, constituent funds or approved pooled investment funds;(c) the risks associated with investing in provident fund schemes, constituent funds or approved pooled investment funds;(d) the fees and charges payable under provident fund schemes, constituent funds or approved pooled investment funds; and(e) the types of services available to members of provident fund schemes. (Added 1 of 2008 s. 37)(6) Section 41 does not prevent the Authority from disclosing to a person located in a place outside Hong Kong information obtained by it under this Ordinance if—(a) the person exercises or performs in that place functions that correspond to those of the Authority or a person or body specified in subsection (1)(d); and(b) the Authority is satisfied that—(i) the person is subject to adequate secrecy provisions imposed by the law of that place; or(ii) the disclosure will enable or assist the person to exercise or perform the person’s official functions, and that it is not contrary to the interests of any scheme members or the public interest that the information should be disclosed to the person.(7) The information that may be disclosed under subsection (6) includes (but is not limited to) information on matters relating to the affairs of an approved trustee or a service provider—(a) that is incorporated, or that has its principal place of business, in a place outside Hong Kong; or(b) that is incorporated in or outside Hong Kong and that is an associate of an approved trustee that is incorporated, or has its principal place of business, in that place; or(c) that is incorporated in Hong Kong and that has, or is proposing to establish, in that place an associate that is or would be subject to supervision by that person.(8) Subject to subsection (9), if information is disclosed by the operation of subsection (1) (other than paragraph (a), (ca) or (f) of that subsection), any of the following persons must not disclose the information (or any part of it) to any other person—(a) the person to whom the information is so disclosed;(b) another person obtaining or receiving the information, whether directly or indirectly, from that person. (Added 1 of 2015 s. 9)(9) Subsection (8) does not prevent a person from disclosing information to any other person if—(a) the Authority consents to the disclosure;(b) the disclosure—(i) is made by a person or body specified in subsection (1)(d)(v), (vi) or (vii), or a person authorized by any of them; and(ii) in the opinion of the person or body, enables or assists the person or body to perform their functions under Part 4A;(c) the information (or the part of it) has already been made available to the public;(d) the disclosure is for seeking advice from, or giving advice by, counsel or a solicitor or other professional adviser acting or proposing to act in a professional capacity in connection with a matter arising under this Ordinance;(e) the disclosure is in connection with any judicial or other proceedings to which the person or that other person referred to in subsection (8)(a) or (b) is a party; or(f) the disclosure is in accordance with a court order, a law or a requirement made under a law. (Added 1 of 2015 s. 9)(10) Section 41 does not prevent the Authority from giving consent under subsection (9)(a) if it is satisfied that the disclosure—(a) is in the interests of the scheme members concerned;(b) is in the public interest; or(c) enables the exercise or performance of a function imposed or conferred by law. (Added 1 of 2015 s. 9)(11) The Authority may, in disclosing information under this section or in giving consent under subsection (9)(a), impose conditions that it considers appropriate. (Added 1 of 2015 s. 9)(12) A person who contravenes subsection (8) commits an offence and is liable on conviction to a fine at level 4. (Added 1 of 2015 s. 9)(Replaced 4 of 1998 s. 2) 42AA. Insurance Authority, Monetary Authority and Securities and Futures Commission may disclose information obtained under Part 4A despite section 41 (Amended 1 of 2015 s. 10; 40 of 2021 s. 36)(1) Section 41 does not prevent an entity specified in subsection (5) from disclosing the information to another entity so specified if, in the opinion of the entity disclosing the information— (Amended 1 of 2015 s. 10)(a) the disclosure will enable or assist the recipient of the information to perform the recipient’s functions under Part 4A;(b) the disclosure will enable or assist the recipient of the information to perform the recipient’s functions (other than those under Part 4A) and it is not contrary to the interest of the investing public or to the public interest that the information should be so disclosed; or(c) it is desirable or expedient that the information should be disclosed in the interest of the investing public or in the public interest.(2) Section 41 does not prevent an entity specified in subsection (5) from disclosing the information to the Authority if, in the opinion of the entity, the disclosure will enable or assist the Authority to perform its functions.(3) Section 41 does not prevent an entity specified in subsection (5) from doing any of the following with respect to information obtained by it under Part 4A—(a) disclose the information as a summary compiled from information provided by persons in accordance with Part 4A but only if the summary is compiled so as to prevent the identities and businesses of those persons from being ascertained from the summary;(b) disclose the information for the purpose of any criminal proceedings in Hong Kong or an investigation conducted with a view to bringing any such proceedings;(c) disclose the information in connection with any civil proceedings to which the entity is a party or with a view to bringing any such proceedings;(ca) disclose the information for seeking advice from, or giving advice by, counsel or a solicitor or other professional adviser acting or proposing to act in a professional capacity in connection with a matter arising under this Ordinance; (Added 1 of 2015 s. 10)(d) disclose the information in such form as the entity considers appropriate but only if the information has been made available to members of the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by section 41;(e) subject to subsections (3A) and (4), disclose the information to—(i) the Chief Executive;(ii) the Financial Secretary;(iii) the Secretary for Justice;(iv) the Registrar of Occupational Retirement Schemes;(v) the Commissioner of Inland Revenue;(vi) the Privacy Commissioner for Personal Data;(vii) the Ombudsman;(viii) the Registrar of Companies;(ix) the Accounting and Financial Reporting Council continued under section 6 of the Accounting and Financial Reporting Council Ordinance (Cap. 588);(Amended L.N. 66 of 2022)(x) the Official Receiver appointed under the Bankruptcy Ordinance (Cap. 6);(xi) a liquidator appointed under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32); or(xii) a person authorized by a person or body specified in subparagraph (i), (ii), (iii) or (iv); (Replaced 1 of 2015 s. 10. Amended E.R. 4 of 2019)(f) disclose the information with the consent of the person from whom the information was obtained or received and, if the information relates to a different person, with the consent also of the person to whom the information relates.(3A) An entity specified in subsection (5) may only disclose information under subsection (3)(e) if, in its opinion, the disclosure—(a) is in the interests of the scheme members concerned;(b) is in the public interest; or(c) enables the exercise or performance of a function imposed or conferred by law. (Added 1 of 2015 s. 10)(4) An entity specified in subsection (5) may disclose information under subsection (3) to the Commissioner of Inland Revenue only if the entity is satisfied that the information is required in order to assist the Commissioner in determining a matter that the Commissioner is required or empowered to determine under the Inland Revenue Ordinance (Cap. 112). (Amended 1 of 2015 s. 10)(5) The entity specified for the purposes of this section is—(a) the Insurance Authority;(b) the Monetary Authority; or(c) the Securities and Futures Commission.(6) Subject to subsection (7), if information is disclosed by the operation of subsection (3) (other than paragraph (a), (d) or (f) of that subsection), any of the following persons (not being the Authority or an entity specified in subsection (5)) must not disclose the information (or any part of it) to any other person—(a) the person to whom the information is so disclosed;(b) another person obtaining or receiving the information, whether directly or indirectly, from that person. (Added 1 of 2015 s. 10)(7) Subsection (6) does not prevent a person from disclosing information to any other person if—(a) the entity disclosing the information consents to the disclosure;(b) the information (or the part of it) has already been made available to the public;(c) the disclosure is for seeking advice from, or giving advice by, counsel or a solicitor or other professional adviser acting or proposing to act in a professional capacity in connection with a matter arising under this Ordinance;(d) the disclosure is in connection with any judicial or other proceedings to which the person or that other person referred to in subsection (6)(a) or (b) is a party; or(e) the disclosure is in accordance with a court order, a law or a requirement made under a law. (Added 1 of 2015 s. 10)(8) Section 41 does not prevent the entity disclosing the information from giving consent under subsection (7)(a) if, in its opinion, the disclosure—(a) is in the interests of the scheme members concerned;(b) is in the public interest; or(c) enables the exercise or performance of a function imposed or conferred by law. (Added 1 of 2015 s. 10)(9) The entity disclosing the information may, in disclosing information under this section or in giving consent under subsection (7)(a), impose conditions that it considers appropriate. (Added 1 of 2015 s. 10)(10) A person who contravenes subsection (6) commits an offence and is liable on conviction to a fine at level 4. (Added 1 of 2015 s. 10)(Added 16 of 2012 s. 15. Amended E.R. 1 of 2013) 42AAB. Specified persons may disclose certain information despite section 41 (Amended 40 of 2021 s. 37)(1) Section 41 does not prevent a specified person from disclosing information if— (Amended 40 of 2021 s. 37)(a) the Authority has given written consent; and(b) any of the following applies—(i) the person to whom the information relates has given written consent;(ii) the information is disclosed in a manner that prevents particulars relating to the identity of the person to whom the information relates from being ascertained from the information.(2) The Authority may give consent only if—(a) the information is to be disclosed to a person located in a place outside Hong Kong;(b) the person exercises or performs in that place functions that correspond to those of the Commissioner of Inland Revenue; and(c) the Authority is satisfied that the disclosure will enable or assist the person to exercise or perform the person’s official functions.(3) The Authority may, in giving consent, impose conditions that it considers appropriate.(4) In this section—relevant employer (有關僱主) has the meaning given by section 2(1) of the Occupational Retirement Schemes Ordinance (Cap. 426);specified person (指明人士) means—(a) an administrator as defined by section 2(1) of the Occupational Retirement Schemes Ordinance (Cap. 426);(b) an approved trustee of a registered scheme; or(c) a relevant employer of an occupational retirement scheme. (Added 40 of 2021 s. 37)(Added 1 of 2015 s. 11) 42AB. Person not to disclose information obtained in the course of inspection, investigation or disciplinary action (1) This section applies to—(a) a person on whom a requirement under section 34P, 34ZR or 34ZU has been imposed by—(i) the Authority or a person directed by the Authority under section 34O(1)(a)(ii); or(ii) an industry regulator or a person directed by an industry regulator under section 34O(2)(b), 34ZQ(1)(b) or 34ZT(1)(b); or(b) a person who has been given a notice under section 34ZZ(2)(a) or 34ZZH(2).(2) The person specified in subsection (1)(a) must not disclose any information obtained in the course of the requirement being imposed, or in the course of a compliance or purported compliance with the requirement, to any other person unless—(a) the following consents to the disclosure—(i) in the case of subsection (1)(a)(i), the Authority;(ii) in the case of subsection (1)(a)(ii), the industry regulator; or(b) any of the conditions specified in subsection (4) is satisfied.(3) The person specified in subsection (1)(b) must not disclose any information obtained from the notice, or from any communication with the Authority in relation to the subject matter of the notice, unless—(a) the Authority consents to the disclosure; or(b) any of the conditions specified in subsection (4) is satisfied.(4) The conditions specified for the purposes of subsections (2)(b) and (3)(b) are—(a) the information has already been made available to the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by section 41;(b) the disclosure is for the purpose of seeking advice from, or giving advice by counsel, a solicitor, or any other professional advisor, acting or proposing to act in a professional capacity in connection with any matter arising under a provision of Part 4A;(c) the disclosure is in connection with any judicial or other proceedings to which the person is a party; and(d) the disclosure is in accordance with an order of a court, or in accordance with a law or a requirement made under a law.(5) The Authority or industry regulator may impose any conditions that it considers appropriate on a consent given by it for the purposes of subsection (2)(a) or (3)(a).(6) A person who contravenes subsection (2) or (3) commits an offence and is liable on conviction to a fine at level 4.(Added 16 of 2012 s. 15. Amended E.R. 1 of 2013) 42A. Protection for auditors and service providers (1) An auditor or a service provider appointed or engaged by an approved trustee under this Ordinance does not contravene a duty owed by the auditor or service provider in law only because the auditor or service provider has given to the Authority in good faith information, an opinion or a document concerning a matter if—(a) the auditor or service provider became aware of the matter in the auditor’s or service provider’s capacity as such; and(b) the matter is relevant to a function of the Authority under this Ordinance.(2) Subsection (1) has effect with respect to information, an opinion or a document given to the Authority whether or not it is given in response to a request of the Authority.(3) Subsection (1) applies—(a) to a person whose appointment or engagement as an auditor or service provider has ceased; and(b) to an auditor or service provider who was appointed by a trustee whose approval has been revoked.(Added 4 of 1998 s. 2) 42B. Immunity (1) No civil liability shall be incurred by the Authority, a director of the Authority or an employee of the Authority in respect of anything done, or omitted to be done, by the Authority, director or employee (as the case requires) in good faith in the performance or purported performance of any function under this Ordinance or any other enactment. (Amended 16 of 2012 s. 16)(1A) No civil liability is incurred by—(a) a wholly owned subsidiary (other than a specified entity); or(b) a director or employee of the subsidiary,in respect of anything done, or omitted to be done, by the subsidiary, director or employee (as the case requires) in good faith in the performance or purported performance of any function delegated to the subsidiary under section 6F. (Added 16 of 2020 s. 10)(2) No civil liability is incurred by an entity specified in subsection (3), or a director or employee of such an entity, or a person directed by such an entity under section 34O(2)(b), 34ZQ(1)(b) or 34ZT(1)(b), in respect of anything done, or omitted to be done, by the entity, director, employee or person (as the case requires) in good faith in the performance or purported performance of any function under Part 4A. (Added 16 of 2012 s. 16)(3) The entity is—(a) the Insurance Authority;(b) the Monetary Authority; or(c) the Securities and Futures Commission. (Added 16 of 2012 s. 16)(4) No civil liability is incurred by—(a) a specified entity; or(b) a director or employee of the specified entity,in respect of anything done, or omitted to be done, by the entity, director or employee (as the case requires) in good faith in the performance or purported performance of the functions mentioned in subsection (5). (Added 40 of 2021 s. 38)(5) The functions are—(a) to provide (in the capacity of the system operator of an electronic MPF system) administrative support to the Authority under section 19ZG;(b) to perform a function delegated under section 6F(2) by the Authority; and(c) to comply with a direction or instruction given by the Authority to the specified entity (as the system operator of an electronic MPF system). (Added 40 of 2021 s. 38)(6) In subsection (5)(c), a reference to a direction or instruction includes a direction or instruction under section 6E(1)(ec)(ii). (Added 40 of 2021 s. 38)(Added 2 of 2002 s. 15. Amended E.R. 1 of 2013; 40 of 2021 s. 38) 43. Offence for unapproved person to carry on business as approved trustee, etc. (1) A person must not act as, or purport to carry on business as, an approved trustee unless the person is approved as a trustee under section 20.(2) A person must not administer, or purport to administer, a provident fund scheme unless—(a) the person is an approved trustee or has been appointed under section 33A(3) as administrator of the scheme; and(b) the scheme is registered under section 21 or 21A.(2A) However, subsection (2) does not apply to the system operator of an electronic MPF system or a person engaged by the system operator for providing scheme administration services to approved trustees. (Added 40 of 2021 s. 39)(3) A person who contravenes subsection (1) or (2) commits an offence and is liable—(a) on conviction on indictment to a fine of $5,000,000 and to imprisonment for 7 years and, in the case of a continuing offence, to a further fine of $100,000 for each day on which the offence is continued; or (Replaced 1 of 2015 s. 12)(b) on summary conviction to a fine of $500,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for each day on which the offence is continued. (Replaced 1 of 2015 s. 12)(Replaced 4 of 1998 s. 2) 43A. Offences by approved trustees (1) An approved trustee of a registered scheme commits an offence if the trustee, without reasonable excuse—(a) pays the accrued benefits of a scheme member otherwise than in the circumstances permitted by or under this Ordinance; or(b) fails to pay accrued benefits of a scheme member in accordance with an entitlement conferred by or under this Ordinance.(2) An approved trustee of a registered scheme who invests the accrued benefits of scheme members in restricted investments in contravention of section 29 commits an offence.(3) An approved trustee who, without reasonable excuse, fails to comply with a requirement of section 14(3) commits an offence.(4) An approved trustee who is convicted of an offence against this section is liable—(a) to a fine at level 6 and to imprisonment for 12 months on the first occasion on which the person is convicted of the offence; and(b) to a fine of $200,000 and to imprisonment for 2 years on each subsequent occasion on which the person is convicted of the offence.(Added 4 of 1998 s. 2) 43B. Offences by employers (1) An employer who, without reasonable excuse, fails to comply with a requirement imposed on employers by section 7 commits an offence and is liable on conviction to a fine of $350,000 and to imprisonment for 3 years and, in the case of an offence consisting of a failure by the employer to comply with the requirement imposed by section 7(1A), to a daily penalty of $500 for each day on which the offence is continued. (Replaced 18 of 2008 s. 3)(1A) For the purposes of subsection (1), an employer does not have a reasonable excuse for failing to comply with a requirement imposed by section 7 by reason only that the relevant employee’s not becoming or continuing to be a member of a registered scheme was wholly or partly due to the fault of the employee. (Added 18 of 2008 s. 3)(1B) An employer who, without reasonable excuse, fails to comply with section 7A(1), (2) or (7) commits an offence and is liable on conviction—(a) to a fine at level 6 and to imprisonment for 6 months on the first occasion on which the person is convicted of the offence; and(b) to a fine of $200,000 and to imprisonment for 12 months on each subsequent occasion on which the person is convicted of the offence. (Added 18 of 2008 s. 3)(1C) An employer who, without reasonable excuse, fails to comply with section 7A(8) commits an offence and is—(a) in the case where he has deducted any amount from the employee’s relevant income for the contribution period concerned as the employee’s contribution and the total amount of contribution paid in respect of the employee to the approved trustee for that contribution period is less than the amount so deducted, liable on conviction to a fine of $450,000 and to imprisonment for 4 years and, in the case of a continuing offence, to a daily penalty of $700 for each day on which the offence is continued; and(b) in any other case, liable on conviction to a fine of $350,000 and to imprisonment for 3 years and, in the case of a continuing offence, to a daily penalty of $500 for each day on which the offence is continued. (Added 18 of 2008 s. 3. Amended 16 of 2012 s. 17)(1D) An employer who, without reasonable excuse, fails to comply with section 7AA(2), (3) or (6) commits an offence and is liable on conviction—(a) to a fine at level 6 and to imprisonment for 6 months on the first occasion on which the person is convicted of the offence; and(b) to a fine of $200,000 and to imprisonment for 12 months on each subsequent occasion on which the person is convicted of the offence. (Added 18 of 2008 s. 11)(1E) An employer who, without reasonable excuse, fails to comply with section 7AA(7) commits an offence and is—(a) in the case where he has deducted any amount from the employee’s relevant income for the contribution period concerned as the employee’s contribution and the total amount of contribution paid in respect of the employee to the Authority for that contribution period is less than the amount so deducted, liable on conviction to a fine of $450,000 and to imprisonment for 4 years and, in the case of a continuing offence, to a daily penalty of $700 for each day on which the offence is continued; and(b) in any other case, liable on conviction to a fine of $350,000 and to imprisonment for 3 years and, in the case of a continuing offence, to a daily penalty of $500 for each day on which the offence is continued. (Added 18 of 2008 s. 11. Amended 16 of 2012 s. 17)(2) An employer who, without reasonable excuse, fails to comply with a requirement of section 14(4) commits an offence and is liable on conviction— (Amended 18 of 2008 s. 3)(a) to a fine at level 6 and to imprisonment for 6 months on the first occasion on which the person is convicted of the offence; and(b) to a fine of $200,000 and to imprisonment for 12 months on each subsequent occasion on which the person is convicted of the offence. (Amended 18 of 2008 s. 3)(3) (Repealed 18 of 2008 s. 3)(3A) If—(a) in proceedings brought under section 18(3), a court orders an employer to pay any arrears or contribution surcharge to the Authority; and(b) without reasonable excuse, the employer fails to pay to the Authority any sum payable under the order at the end of 14 days after the date by which the sum must be paid to the Authority under the order, the employer commits an offence and is liable on conviction to a fine of $350,000 and to imprisonment for 3 years and, in the case of a continuing offence, to a daily penalty of $500 for each day on which the offence is continued. (Added 16 of 2012 s. 17)(3B) In subsection (3A), a reference to a sum payable under an order includes—(a) any part of a sum payable under the order; and(b) in the case of a sum payable by instalments, any instalment or any part of an instalment. (Added 16 of 2012 s. 17) (4) Notwithstanding section 26 of the Magistrates Ordinance (Cap. 227), proceedings may be instituted for an offence against this section within 6 months after the offence is discovered by, or comes to the notice of, the Authority. (Added 29 of 2002 s. 11. Amended 1 of 2008 s. 42)(Added 4 of 1998 s. 2) 43BA. Court may make certain orders in proceedings for offences under section 43B (1) Where an employer is convicted by a court of an offence against section 43B(1), the court may, in addition to any penalty imposed under that section, make an order requiring the employer to procure for the employee concerned membership in a registered scheme within the time specified in the order.(2) Where an employer is acquitted by a court of an offence against section 43B(1) on the ground that there was a reasonable excuse for the default, the court may make an order requiring the employer to procure for the employee concerned membership in a registered scheme within the time specified in the order.(3) Where an employer is convicted by a court of an offence against section 43B(1C) or (1E), the court may, in addition to any penalty imposed under that section, make an order requiring the employer to pay any mandatory contribution or contribution surcharge that is outstanding at the time of the conviction and in respect of which the offence was committed.(4) Where an employer is acquitted by a court of an offence against section 43B(1C) or (1E) on the ground that there was a reasonable excuse for the default, the court may make an order requiring the employer to pay any mandatory contribution or contribution surcharge that is outstanding at the time of the acquittal and in respect of which the charge was brought.(5) An employer who, without reasonable excuse, fails to comply with an order made under this section commits an offence and is liable on conviction to a fine of $350,000 and to imprisonment for 3 years and, in the case of a continuing offence, to a daily penalty of $500 for each day on which the offence is continued.(6) The Authority must pay any contribution or surcharge that is paid to it in respect of a relevant employee pursuant to an order made under subsection (3) or (4)—(a) where the employee is still employed by the employer concerned at the time the Authority makes payment—(i) to the approved trustee of the registered scheme nominated by the employer for this purpose; or(ii) if the employer has not nominated a registered scheme, to the approved trustee of the registered scheme nominated by the employee for this purpose; or(iii) if neither the employer nor the employee has nominated a registered scheme, to the approved trustee of a registered scheme that the Authority considers appropriate; or(b) where the employee has ceased to be employed by the employer concerned at the time the Authority makes payment—(i) to the approved trustee of the registered scheme nominated by the employee for this purpose; or(ii) if the employee has not nominated a registered scheme, to the approved trustee of a registered scheme that the Authority considers appropriate.(7) On receiving the contribution or surcharge paid to the approved trustee under subsection (6), the approved trustee must take actions reasonably required by the Authority with regard to the contribution or surcharge. (Replaced 40 of 2021 s. 40)(8) (Repealed 40 of 2021 s. 40)(9) Nothing in subsection (3) or (4) affects the rights conferred on the Authority or any other person by this Ordinance or any other law to bring proceedings to recover from the employer any outstanding mandatory contribution or contribution surcharge.(Added 18 of 2008 s. 12) 43C. Offences by self-employed persons (1) A self-employed person who is 18 years of age or over and below retirement age commits an offence if, without reasonable excuse, the person— (Amended 2 of 2002 s. 16)(a) fails to become a member of a registered scheme; or(b) fails to continue to be a member of a registered scheme; or(c) being a member of a registered scheme—(i) fails to pay a mandatory contribution on time; or(ii) pays as a mandatory contribution an amount that is less than the required amount.(2) A self-employed person who is convicted of an offence against this section is liable—(a) to a fine at level 5 and to imprisonment for 6 months on the first occasion on which the person is convicted of the offence; and(b) to a fine at level 6 and to imprisonment for 12 months on each subsequent occasion on which the person is convicted of the offence.(3) (Repealed 1 of 2015 s. 13)(Added 4 of 1998 s. 2) 43D. Offence to obstruct Authority etc. in the exercise or performance of functions (1) Any person who—(a) without lawful authority, obstructs or hinders, or interferes with, a person to whom this section applies in the exercise or performance of a function conferred or imposed on that person by or under this Ordinance; or(b) without reasonable excuse, fails to comply with a lawful requirement made by such a person in the course of exercising or performing such a function, commits an offence and is liable on conviction—(i) to a fine at level 6 and to imprisonment for 12 months on the first occasion on which the person is convicted of the offence; and(ii) to a fine of $200,000 and to imprisonment for 2 years on each subsequent occasion on which the person is convicted of the offence.(2) This section applies to the following persons—(a) the Authority;(b) an authorized person;(c) an auditor who is appointed by an approved trustee for the purposes of section 30;(d) an inspector appointed for the purposes of section 32.(Added 4 of 1998 s. 2) 43E. Offence to make false or misleading statement (1) A person who, in any document given to a prescribed person in connection with this Ordinance, makes a statement that the person knows to be false or misleading in a material respect, or recklessly makes a statement which is false or misleading in a material respect, commits an offence and is liable on conviction— (Amended 1 of 2008 s. 44; 9 of 2016 s. 9; 40 of 2021 s. 41)(a) to a fine at level 6 and to imprisonment for 12 months on the first occasion on which the person is convicted of the offence; and(b) to a fine of $200,000 and to imprisonment for 2 years on each subsequent occasion on which the person is convicted of the offence.(2) (Repealed 1 of 2015 s. 14)(3) In this section—prescribed person (訂明人士) means—(a) the Authority;(b) a system operator of an electronic MPF system;(c) an approved trustee;(d) a trustee of a relevant scheme; or(e) an auditor of an approved trustee or of a registered scheme; (Added 40 of 2021 s. 41)relevant scheme (有關計劃) has the meaning given by section 1(1) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B). (Added 9 of 2016 s. 9)(Added 4 of 1998 s. 2) 43F. Offence relating to pay-record (1) A participating employer who, in a pay-record given to an employee, provides any information that the employer knows to be false or misleading in a material respect, or recklessly provides any information that is false or misleading in a material respect, commits an offence and is liable on conviction—(a) to a fine at level 6 and to imprisonment for 12 months on the first occasion on which the person is convicted of the offence; and(b) to a fine of $200,000 and to imprisonment for 2 years on each subsequent occasion on which the person is convicted of the offence.(2) (Repealed 1 of 2015 s. 15)(3) In this section, pay-record (供款紀錄) means a pay-record prepared under section 139 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A).(Added 18 of 2008 s. 35) 44. Liability of officers, managers and partners (1) Where an offence under this Ordinance is committed by a company and is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any officer, or other person concerned in the management of the company, or any person who was purporting to act in that capacity, the officer or person as well as the company commits the offence and is liable to be proceeded against and punished accordingly. (Amended 4 of 1998 s. 2)(2) Where an offence under this Ordinance committed by a partner is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any other partner of the partnership, that other partner also commits the offence and is liable to be proceeded against and punished accordingly. (Amended 4 of 1998 s. 2)(3) Where an offence under section 43B(3A) is committed by a company, the offence is presumed to have been committed with the consent or connivance of, or to be attributable to the neglect on the part of, an officer or any person who was purporting to act in that capacity if it is proved that, at the time the offence was committed, the officer or person—(a) was concerned in the management of the company; or(b) knew or ought to have known that the order in respect of which the offence was committed had been made against the company. (Added 16 of 2012 s. 18)(4) Where an offence under section 43B(3A) is committed by a company, the offence is presumed to have been committed with the consent or connivance of, or to be attributable to the neglect on the part of, a person (other than an officer) concerned in the management of the company or any person who was purporting to act in that capacity if it is proved that, at the time the offence was committed, the person knew or ought to have known that the order in respect of which the offence was committed had been made against the company. (Added 16 of 2012 s. 18)(5) Where an offence under section 43B(3A) is committed by a partner, the offence is presumed to have been committed with the consent or connivance of, or to be attributable to the neglect on the part of, another partner of the partnership if it is proved that, at the time the offence was committed, the other partner—(a) was concerned in the management of the partnership; or(b) knew or ought to have known that the order in respect of which the offence was committed had been made against the partner. (Added 16 of 2012 s. 18)(6) The presumption under subsection (3), (4) or (5) is rebutted by a person charged with an offence under section 43B(3A) by virtue of that subsection if—(a) there is sufficient evidence to raise an issue that the offence was committed without the person’s consent or connivance and was not attributable to the person’s neglect; and(b) the contrary is not proved by the prosecution beyond reasonable doubt. (Added 16 of 2012 s. 18) 44A. Proof of certain matters in proceedings for offence under section 43B(3A) (1) In proceedings for an offence under section 43B(3A)—(a) a document purporting to be a copy of a document specified in subsection (6), and purporting to be certified by or on behalf of the registrar of a court as a true copy of the specified document, is admissible in evidence on its production without further proof; and(b) on being admitted in evidence under paragraph (a), the document, unless there is evidence to the contrary—(i) is presumed to be so certified;(ii) is presumed to be a true copy of the specified document; and(iii) if the specified document is prepared by an officer of a court, is proof of its contents.(2) In proceedings for an offence under section 43B(3A)—(a) a document purporting to be a copy of any document relevant to any of the facts specified in subsections (7) and (8), and purporting to be certified by or on behalf of the registrar of a court as a true copy of the document so relevant, is admissible in evidence on its production without further proof; and(b) on being admitted in evidence under paragraph (a), the document, unless there is evidence to the contrary—(i) is presumed to be so certified;(ii) is presumed to be a true copy of the document so relevant; and(iii) if the document so relevant is prepared by an officer of a court, is proof of the facts to which the document is relevant.(3) In proceedings for an offence under section 43B(3A)—(a) a certificate purporting to be issued by or on behalf of the registrar of a court, and stating any of the facts specified in subsection (7), is admissible in evidence on its production without further proof; and(b) on being admitted in evidence under paragraph (a), the certificate, unless there is evidence to the contrary—(i) is presumed to be so issued; and(ii) is proof of the facts so stated.(4) In proceedings for an offence under section 43B(3A)—(a) a certificate purporting to be issued by or on behalf of the Registrar of the High Court or of the Court of Final Appeal, and stating any of the facts specified in subsection (8), is admissible in evidence on its production without further proof; and(b) on being admitted in evidence under paragraph (a), the certificate, unless there is evidence to the contrary—(i) is presumed to be so issued; and(ii) is proof of the facts so stated.(5) In proceedings for an offence under section 43B(3A)—(a) a certificate purporting to be issued by the Authority, and stating either or both of the facts specified in subsection (9), is admissible in evidence on its production without further proof; and(b) on being admitted in evidence under paragraph (a), the certificate, unless there is evidence to the contrary—(i) is presumed to be issued by the Authority; and(ii) is proof of the facts so stated.(6) The document specified for the purposes of subsection (1)(a) is—(a) a claim filed with a court of competent jurisdiction in proceedings brought under section 18(3);(b) an order made by a court of competent jurisdiction in those proceedings; or(c) any other document relating to proceedings brought under section 18(3).(7) The facts specified for the purposes of subsections (2)(a) and (3)(a) are—(a) whether any payment has been made to the court in full or partial discharge of an order of the court and if so, the particulars of the payment (including the amount and date of the payment);(b) whether a decision has been made in any proceedings to set aside or review an order of the court and, if so, the particulars of the decision;(c) whether any proceedings are pending to set aside or review an order of the court and, if so, the particulars of the pending proceedings;(d) whether any person was present—(i) at the hearing of the court at which an order of the court was made; or(ii) at any hearing of the claim to which the order relates; and(e) whether any document relating to the proceedings before the court has been served on any person and, if so, the particulars of service (including the mode, time and address of the service).(8) The facts specified for the purposes of subsections (2)(a) and (4)(a) are—(a) whether a decision has been made in an appeal (if any) against an order of a court and, if so, the particulars of the decision; and(b) whether an appeal is pending against an order of a court and, if so, the particulars of the pending appeal.(9) The facts specified for the purposes of subsection (5)(a) are—(a) the amount and date of any payment received in satisfaction of an order of a court made in proceedings brought under section 18(3); and(b) the outstanding amount under such an order.(Added 16 of 2012 s. 19) 44B. Defence for offence under section 43A(1) or (3) (1) It is a defence for a person charged with an offence under section 43A(1)(a) to establish that the payment was made only because of the failure of the system operator of the electronic MPF system to discharge the system operator’s duties.(2) It is a defence for a person charged with an offence under section 43A(1)(b) to establish that the default was only because of the failure of the system operator of the electronic MPF system to discharge the system operator’s duties.(3) It is a defence for a person charged with an offence under section 43A(3) to establish that the non-compliance was only because of the failure of the system operator of the electronic MPF system to discharge the system operator’s duties.(4) A person charged with an offence under section 43A(1)(a) or (b) or (3) is taken to have established a matter that needs to be established for the purpose of the relevant defence if—(a) there is sufficient evidence to raise an issue with respect to that matter; and(b) the contrary is not proved by the prosecution beyond reasonable doubt.(5) In this section—default (欠付權益), in relation to a person charged with an offence under section 43A(1)(b), means a failure of the person to pay accrued benefits of a scheme member in accordance with an entitlement conferred by or under this Ordinance;non-compliance (違規), in relation to a person charged with an offence under section 43A(3), means a failure of the person to comply with a requirement of section 14(3);relevant defence (相關免責辯護)—(a) in relation to an offence under section 43A(1)(a), means the defence under subsection (1);(b) in relation to an offence under section 43A(1)(b), means the defence under subsection (2); and(c) in relation to an offence under section 43A(3), means the defence under subsection (3).(Added 40 of 2021 s. 42) 45. Application and interpretation of sections 45B and 45C (1) Sections 45B and 45C apply to—(a) approved trustees;(b) participating employers; (Amended 30 of 2008 s. 6)(c) self-employed persons who are 18 years of age or over and below retirement age; and (Replaced 2 of 2002 s. 17. Amended 30 of 2008 s. 6)(d) persons required to give information or documents under section 19C. (Added 30 of 2008 s. 6)(2) In sections 45B and 45C—prescribed financial penalty (訂明罰款) means the amount of financial penalty prescribed by the regulations in relation to a provision referred to in section 45A(1)(a);prescribed provision (訂明條文) means a provision of this Ordinance or of the regulations prescribed by the regulations for the purposes of those sections.(Replaced 4 of 1998 s. 2) 45A. Power to make regulations for purposes of sections 45B and 45C (1) For the purposes of sections 45B and 45C, the regulations may—(a) prescribe a provision of this Ordinance or of the regulations that—(i) specifies a duty that is required to be performed, or a requirement or standard that is required to be complied with; or(ii) requires a fee, contribution or other amount of money to be paid; and(b) prescribe the amount of financial penalty payable for a failure to perform the duty, or to comply with the requirement or standard, or to pay the amount of money on time; and (c) subject to subsection (2), prescribe different amounts of financial penalties in respect of different provisions of this Ordinance and of the regulations and prescribe different amounts of financial penalties according to whether it is the first or second or a subsequent occasion on which the person concerned has failed—(i) to perform a duty, or comply with a requirement or standard, specified in a prescribed provision; or(ii) to pay on time a fee, contribution or other amount under such a provision; and(d) subject to subsection (2), prescribe a daily penalty for each day on which a failure to perform a duty, or to comply with a requirement or standard, specified in a prescribed provision continues. (Added 18 of 2008 s. 30)(2) The maximum amount that the regulations may prescribe as a financial penalty—(a) for failing to perform a duty, or to comply with a requirement or standard, specified in a prescribed provision, is— (Amended 18 of 2008 s. 30)(i) in the case of a daily penalty, $1,000 per day; and(ii) in any other case, $50,000; and(b) for failing to pay on time a fee, contribution or other amount of money payable under a prescribed provision, is $5,000 or 10 per cent of the amount, whichever is the greater.(Added 4 of 1998 s. 2. Amended 18 of 2008 s. 30) 45B. Authority may serve notice requiring payment of financial penalty in certain cases (1) The Authority may serve on a person to whom this section applies a notice in the required form if it reasonably believes that the person has failed—(a) to perform a duty or to comply with a requirement or standard specified in a prescribed provision; or(b) to pay on time a fee, contribution or other amount of money payable under such a provision.(1A) However, subsection (1) does not apply if the failure occurs only because the system operator of an electronic MPF system fails to discharge the system operator’s duties under this Ordinance. (Added 40 of 2021 s. 43)(2) For the purposes of subsection (1), a notice is in the required form if it—(a) alleges that the person concerned has failed to perform a duty or to comply with a requirement or standard, or to pay on time a fee, contribution or other amount of money, referred to in that subsection; and(b) specifies the prescribed financial penalty that is applicable to the alleged failure; and(c) states that, if within the period specified in the notice (being a period of not less than 14 days), the person—(i) pays to the Authority the prescribed financial penalty specified in the notice;

and(ii) performs the duty, or complies with the requirement or standard, or pays the fee, contribution or other amount of money,no further action will be taken against the person in relation to the matter; and(d) further states that, if at the end of that period, the person has not paid the prescribed financial penalty to the Authority or has not performed the duty, or complied with the requirement or standard, or paid that fee, contribution or amount of money, civil proceedings may be brought against the person to recover the amount of the penalty.(3) If a person on whom a notice is served under this section, within the specified period—(a) pays the prescribed financial penalty to the Authority; and(b) performs the duty or complies with the requirement or standard, or pays the fee, contribution or amount of money, specified in the notice, no proceedings are to be brought against the person for the recovery of that penalty.(4) The fact that a person pays a financial penalty to the Authority does not absolve the person from having to perform the duty or to comply with the relevant requirement or standard specified in, or to pay the fee, contribution or amount of money payable under, the relevant prescribed provision.(Added 4 of 1998 s. 2) 45C. Proceedings for recovery of financial penalty (1) If a person on whom a notice is served under section 45B does not, within the period specified in the notice—(a) pay the prescribed financial penalty to the Authority; or(b) perform the duty or comply with the relevant requirement or standard specified, or pay the fee, contribution or amount of money payable under, the relevant prescribed provision, the Authority may bring proceedings in a court of competent jurisdiction for the recovery of that penalty.(2) On the hearing of proceedings brought under this section, the court may, if satisfied that the defendant has failed to perform the duty or to comply with the requirement or standard, or to pay the fee, contribution or other amount of money, that gave rise to the proceedings, order the defendant to pay—(a) the amount of the prescribed financial penalty; or(b) such smaller amount as it considers appropriate, having regard to the nature and extent of the failure.(3) It is a defence to proceedings brought under this section (other than proceedings relating to the payment of an amount of money) that it was not reasonably practicable to perform the duty, or to comply with the requirement or standard, to which the proceedings relate.(4) Proceedings under this section may be brought at any time—(a) within 6 years after the date on which it is alleged that the relevant duty was not performed, the relevant requirement or standard was not complied with or the relevant fee, contribution or amount of money was not paid; or(b) if the failure to perform that duty, or to comply with that requirement or standard, or to pay that fee, contribution or amount has continued, within 6 years after the date on which the failure ceased.(5) The procedure and rules of evidence, and the burden of proof, applicable to civil proceedings apply to proceedings brought under this section.(6) In proceedings brought under this section, the court may make an order awarding costs to either party and assess the amount of those costs. An award of costs can be made against the Authority only in the circumstances in which an award of costs could be made against a prosecutor in criminal proceedings.(7) Failure to comply with an order made under this section is a contempt of the court.(Added 4 of 1998 s. 2) 45D. How financial penalty is to be dealt with when paid or recovered A financial penalty paid under section 45B or recovered under section 45C is to be paid into the MPFA Administration Account maintained under section 6M.(Added 4 of 1998 s. 2) 45E. Person not liable to be proceeded against for offence and financial penalty relating to same matter (1) A person may not be charged with an offence arising out of a contravention of a provision of this Ordinance if proceedings for the recovery of a financial penalty have been brought for the same contravention.(2) Proceedings for the recovery of a financial penalty may not be brought against a person for a contravention of this Ordinance if the person has been charged with an offence arising out of the same contravention.(Added 4 of 1998 s. 2) 45F. Power of Court to make certain orders (1) Whenever a person has done, is doing or is proposing to do any act or thing that constituted, constitutes or would constitute a contravention of this Ordinance, the Court may, on the application of the Authority or of any person whose interests have been, are being or would be affected by the doing of the act or thing—(a) make an order restraining the person from again doing, continuing to do or doing that act or thing; and(b) if in the opinion of the Court it is desirable to do so, make a further order requiring the person to do any act or thing.(2) Whenever a person has refused or failed, is refusing or failing, or is proposing to refuse or fail, to do any act or thing that the person is required to do by or under this Ordinance, the Court may, on the application of the Authority or of any person whose interests have been, are being or would be affected by the refusal or failure to do the act or thing, make an order requiring the person to do the act or thing.(3) An order under subsection (1) or (2) may be made on such terms as the Court considers appropriate.(4) The Court may grant an interim order pending determination of an application referred to in subsection (1) if in its opinion it is desirable to do so.(5) The Court may from time to time rescind or vary an order made under this section.(6) The power of the Court to make an order restraining a person from again doing, continuing to do or doing an act or thing may be exercised—(a) whether or not it appears to the Court that the person intends to do the act or thing again or to continue to do the act or thing; and(b) whether or not the person has previously done the act or thing; and(c) whether or not there is imminent danger of substantial damage to any other person if the person does the act or thing.(7) The power of the Court to make an order requiring a person to do an act or thing may be exercised—(a) whether or not it appears to the Court that the person intends to refuse or fail again, or to continue to refuse or fail, to do the act or thing; and(b) whether or not the person has previously refused or failed to do the act or thing; and(c) whether or not there is an imminent danger of substantial damage to any other person if the person refuses or fails to do the act or thing.(8) If an application for an order under this section is made by the Authority, the Court may not require the Authority or any other person, as a condition of making an interim order, to give any undertaking as to damages.(9) The Court may, in addition to or instead of making an order under this section in respect of a person, order the person to pay damages to another person.(Added 4 of 1998 s. 2) 45G. Right to bring civil proceedings to recover financial loss (1) A person who has sustained financial loss that is attributable—(a) to a contravention of the governing rules of a registered scheme by another person; or(b) to the failure of another person to perform a duty, or to comply with a requirement or standard, imposed on that other person by or under this Ordinance (except Part 4A), (Amended 16 of 2012 s. 20) is entitled, by proceedings brought in a court of competent jurisdiction, to recover from that other person the amount of that loss as damages.(2) The right conferred by this section is in addition to any other right conferred by law to recover the loss or damages in respect of the loss.(Added 4 of 1998 s. 2. Amended E.R. 1 of 2013) 46. Regulations (1) The Chief Executive in Council may make regulations, not inconsistent with this Ordinance, for or with respect to any matter—(a) that by this Ordinance is required or permitted to be prescribed by regulations; or(b) that is necessary or convenient to be prescribed for achieving the objects of this Ordinance. (Replaced 4 of 1998 s. 2)(1A) Regulations may also be made under subsection (1) for all or any of the following purposes—(a) providing for the giving of undertakings to the Authority by approved trustees and applicants for approval as trustees;(b) requiring approved trustees and persons applying for approval as such to enter into arrangements for the provision of adequate insurance against the risk of losses that are attributable to misfeasance or other illegal conduct by them or by others with respect to registered schemes;(c) prescribing the retirement age for the purposes of this Ordinance;(d) requiring approved trustees of registered schemes to provide information to scheme members and prescribing the kind of information that is to be provided to them;(da) providing for the keeping of records (including the establishment and maintenance of registers), and the provision of information in those records; (Added 11 of 2009 s. 10)(e) providing for the payment of accrued benefits to or in respect of scheme members and providing for the transfer of accrued benefits from one registered scheme to another or from one account in a registered scheme to another;(f) providing for the preservation of the accrued benefits of scheme members until the occurrence of a specified event (including, but not limited to, the retirement, death, total incapacity, terminal illness or permanent departure from Hong Kong of scheme members); (Amended 1 of 2015 s. 16)(g) providing for the disposal of unclaimed accrued benefits;(h) providing for the operation of the compensation fund referred to in section 17;(i) providing for the formulation of proper accounting systems (including the keeping of proper accounting records) with respect to registered schemes;(j) prescribing requirements with which approved trustees must comply with with respect to keeping scheme member’s accounts;(k) permitting approved trustees, despite section 12, to deduct from scheme members’ accounts fees for administrative expenses;(l) providing for the auditing of the accounting records and financial statements of approved trustees and of registered schemes;(m) prescribing the duties of auditors so appointed (including the duty of an auditor to report specified matters to the Authority in specified circumstances);(n) providing for the engagement or appointment by the approved trustee of a registered scheme of service providers to provide services for the purposes of the scheme and for the delegation of the trustee’s functions in relation to the scheme to such a service provider;(o) prescribing the duties of service providers and other persons engaged or appointed by the approved trustee of a registered scheme to provide services for the purposes of the scheme (including the duty of such a service provider or other person to report specified matters to the Authority in specified circumstances);(p) prescribing requirements that are to be complied with with respect to the funds of registered schemes, including—(i) requirements relating to the separation of the funds and other assets of a registered scheme from other funds and assets that are beneficially owned by employers who are participating in the scheme; and(ii) requirements that the funds and other assets of a registered scheme are to be applied only for the purposes of the scheme; and(iii) requirements that the funds and other assets of a registered scheme are not to be subject to any charge, pledge, lien, mortgage or other encumbrance, except in circumstances specified in the rules or by the Authority;(q) requiring approved trustees of registered schemes to enter into arrangements for the scheme assets to be held by custodians and prescribing requirements to be complied with with respect to those arrangements and the qualifications of custodians;(r) requiring the approved trustees of registered schemes to maintain adequate reserves so as to provide investment guarantees;(s) requiring approved trustees of registered schemes to maintain specified internal control procedures with respect to those schemes;(sa) providing for, in relation to approved trustees that are companies—(i) the composition of the board of directors of those trustees and the composition of committees of those boards;(ii) any change or proposed change of controllers of those trustees; and(iii) the objection by the Authority to the existing controllers of those trustees continuing to be such controllers; (Added 18 of 2008 s. 31)(t) requiring persons to lodge with the Authority returns containing specified kinds of information, or to provide the Authority with specified kinds of information, relevant to the exercise of the Authority’s functions;(u) providing for the service or notification of documents for the purposes of this Ordinance;(v) providing for the voluntary winding up of employer sponsored schemes;(w) providing for the merger of existing registered schemes and for the division of an existing registered scheme into one or more other schemes;(wa) requiring the guarantor of an approved pooled investment fund, within the meaning of section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A), to maintain adequate reserves so as to provide investment guarantees; (Added 2 of 2002 s. 18)(x) prohibiting funds of a registered scheme from being invested in pooled investment funds except as permitted by the regulations or as approved by the Authority. (Added 4 of 1998 s. 2)(1B) A regulation under this section may do all or any of the following—(a) apply generally or be limited in its application by reference to specified exceptions or factors;(b) apply differently according to different factors of a specified kind;(c) authorize any matter or thing to be determined, applied or regulated by any specified person;(d) prescribe fees for the purposes of those regulations, including fees for the granting of approvals for the purposes of this Ordinance;(e) authorize the Authority to charge (on a cost recovery basis) for any service provided by the Authority. (Added 4 of 1998 s. 2)(1C) A regulation under this section may apply, adopt or incorporate by reference, with or without modifications, any publication (including an Ordinance or subsidiary legislation), either in force at the time of publication or as in force from time to time. (Added 4 of 1998 s. 2)(2) Any regulations made under this section may prescribe offences in respect of contraventions of the regulations, and may provide for the imposition of a fine not exceeding level 6 and of imprisonment for a period not exceeding 1 year.(3) Regulations made under this section shall be subject to the approval of the Legislative Council. 47. Rules (1) The Authority may make rules, not inconsistent with this Ordinance or the regulations, for or with respect to any matter that by this Ordinance is required or permitted to be prescribed by the rules. (Replaced 4 of 1998 s. 2)(1A) Rules may also be made under subsection (1) for all or any of the following purposes—(a) providing for matters relating to the administration of registered schemes; (b) prescribing methods by which mandatory contributions must or may be paid to approved trustees of registered schemes;(c) prescribing the measures to be taken by participating employers, relevant employees and self-employed persons in order to ensure that sections 7, 7A and 7C are complied with. (Added 4 of 1998 s. 2)(2) Rules under this section may do all or any of the following—(a) apply generally or be limited in their application by reference to specified exceptions or factors;(b) apply differently according to different factors of a specified kind;(c) authorize any matter or thing to be determined, applied or regulated by any specified person;(d) prescribe fees for the purposes of those rules. (Replaced 4 of 1998 s. 2)(3) Any rules made under this section may prescribe offences in respect of contraventions of the rules, and may provide for the imposition of a fine not exceeding level 4 and of imprisonment for a period not exceeding 6 months.(4) Rules made under this section shall be subject to the approval of the Legislative Council. 47A. Authority may specify or approve forms (1) The Authority may specify or approve the form and contents of documents required for the purposes of this Ordinance.(2) If the Authority has specified or approved a form for the purposes of this Ordinance, strict compliance with the form is not necessary and substantial compliance is sufficient.(3) If a form specified or approved by the Authority for the purposes of this Ordinance requires the form to be completed in a specified way, or requires specified information to be included in or be attached to, or to accompany, the form, the form is not properly completed unless it is completed in that way, or includes or has attached to it, or is accompanied by, that information.(Added 4 of 1998 s. 2) 47B. Rules against perpetuities not to apply to registered schemes The rules of law relating to perpetuities do not apply to the trusts relating to registered schemes or to the approved trustees of those schemes.(Added 4 of 1998 s. 2) 47C. Service of summons Notwithstanding section 8 of the Magistrates Ordinance (Cap. 227) and without limiting the generality of section 803 or 827 of the Companies Ordinance (Cap. 622), a summons relating to an offence against this Ordinance that is alleged to have been committed by any employer may be served on the employer by leaving it at, or sending it by post to, any place at which the employer carries on business.(Added 1 of 2008 s. 47. Amended 28 of 2012 ss. 912 & 920) 47D. Time limit for prosecution (1) Despite section 26 of the Magistrates Ordinance (Cap. 227), proceedings in respect of an offence (other than an indictable offence) under this Ordinance or any subsidiary legislation under this Ordinance may be brought within 3 years after the commission of the offence unless otherwise specified.(2) Subsection (1) does not apply in relation to proceedings in respect of an offence that was committed before the commencement date* of section 17 of the Mandatory Provident Fund Schemes (Amendment) Ordinance 2015 (1 of 2015).(Added 1 of 2015 s. 17)Editorial Note:* Commencement date: 30 January 2015. 48. Power of Chief Executive in Council to amend Schedules (Amended 40 of 2021 s. 44)(1) The Chief Executive in Council may, by notice published in the Gazette, amend Schedules 1, 1B, 2, 3, 5, 5A, 6, 7, 8 and 17 (specified schedules). (Amended 4 of 1998 s. 2; 9 of 2016 s. 10)(2) Amendments made under this section to the specified schedules are subject to the approval of the Legislative Council.(Amended 40 of 2021 s. 44) 49. (Omitted as spent—E.R. 1 of 2013) 50. Transitional provisions for 2021 Amendment Ordinance The transitional provisions specified in Schedule 17 have effect.(Added 40 of 2021 s. 45) Schedule 1 [ss. 4 & 48]Exempt Persons (Format changes—E.R. 1 of 2012) Part 1 Item Description 1. Any person who is an officer to which the Pensions Ordinance (Cap. 89) applies. 2. Any person who is an officer to which the Pension Benefits Ordinance (Cap. 99) applies. 3. Any person who is an officer to which the Pension Benefits (Judicial Officers) Ordinance (Cap. 401) applies. 4. Any person who is a teacher to which the Grant Schools Provident Fund Rules (Cap. 279 sub. leg. C) apply. 5. Any person who is a teacher to which the Subsidized Schools Provident Fund Rules (Cap. 279 sub. leg. D) apply. 6. Any relevant employee or self-employed person who, at the date of the coming into operation of this Schedule, has attained 64 years of age. 7. (1) Any relevant employee (other than a casual employee) whose employment ceases before the 60th day after the relevant time except a relevant employee who has been employed— (Amended L.N. 224 of 2000) (a) for not less than 60 days after the relevant time; and(b) under a continuous contract. (2) In this item—continuous contract (連續性合約) has the same meaning as in section 3(1) of the Employment Ordinance (Cap. 57); relevant time (有關時間), in relation to a relevant employee, means— (a) if the employee is being employed on the commencement* of section 7 of this Ordinance, the time of that commencement; (b) if the employee is employed after that commencement, the beginning of the date on which the employment begins. (Amended 2 of 2002 s. 19) (Replaced L.N. 225 of 2000) Editorial Note: * Commencement date: 1 December 2000. 8. Any employer of a person specified in items 1 to 7 and 9. (Replaced 4 of 1998 s. 2) 9. Any person employed in the European Union Office of the European Commission in Hong Kong. (1) In respect of items 1 to 5 and 9, the person described in those items is an exempt person only to the extent that the relevant statutory provisions apply to his relevant income derived from employment the subject of those provisions, and not to other income (if any) derived from other sources which may be otherwise subject to the provisions of this Ordinance or to any obligation under this Ordinance in his capacity as an employer, if applicable. (2) In respect of item 7, the relevant employee first-mentioned in that item is an exempt person only to the extent that he is under the employment first-mentioned in that item. (Replaced L.N. 225 of 2000) (3) In respect of item 8, the employer described in that item is an exempt person only to the extent of the relevant income of persons or relevant employees described in items 1 to 7 and 9 and not to other income (if any) derived from other sources which may be otherwise subject to the provisions of this Ordinance. (Amended 4 of 1998 s. 2)(Amended E.R. 1 of 2013) Part 2 Item Description 1. Any person who is a domestic employee in respect of a contract of employment as such. 2. Any self-employed person who is a hawker. 3. Any employer of a person specified in item 1. 4. The employer of an employee who is, because of the operation of section 4(3) of this Ordinance, exempt from the operation of this Ordinance. (Added 4 of 1998 s. 2) (1) In this Part— (Amended 4 of 1998 s. 2)domestic employee (家務僱員) means an employee whose contract of employment is wholly or substantially for the provision of domestic services in the residential premises of the employer;hawker (小販) has the same meaning as in the Public Health and Municipal Services Ordinance (Cap. 132). (2) The persons referred to in items 1 and 2 are exempt from the operation of this Ordinance only in so far as their relevant income is derived from employment of the kind referred to in those items. (Added 4 of 1998 s. 2) (3) An employer referred to in item 3 is exempt from the operation of this Ordinance only in respect of the relevant income of a domestic employee employed by the employer. (Added 4 of 1998 s. 2) (4) An employer referred to in item 4 is exempt from the operation of this Ordinance only in respect of the relevant income of the exempted employee of the employer. (Added 4 of 1998 s. 2) Schedule 1A [ss. 2 & 6A](Amended 40 of 2021 s. 46)Provisions relating to Authority (Schedule 1A added 4 of 1998 s. 2)(Format changes—E.R. 1 of 2012) Part 1 Definitions 1. Definitions In this Schedule—chairperson (主席) means the chairperson of the Authority;deputy chairperson (副主席) means the deputy chairperson of the Authority;director (董事) means a director of the Authority. Part 2 Directors of Authority 2. Periods for which directors may be appointed Subject to this Schedule, a director holds office for such period (not exceeding 4 years) as is specified in the director’s document of appointment, but is eligible (if otherwise qualified) for re-appointment. 3. Terms and conditions of office of directors A director is entitled to such terms and conditions of office (including remuneration and travelling and subsistence allowances) as the Chief Executive may, from time to time, determine in respect of the director. 4. Vacancy in office of director (1) The office of a director becomes vacant if the director—(a) dies; or(b) completes a term of office and is not re-appointed; or(c) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit; or(d) is, under the Mental Health Ordinance (Cap. 136), found by the Court to be of unsound mind and incapable of managing himself or herself and his or her affairs; or(e) is convicted in Hong Kong of an offence which is punishable by imprisonment for 12 months or more or is convicted elsewhere than in Hong Kong of an offence which, if committed in Hong Kong, would be an offence so punishable; or(f) resigns the office by written notice given to the Chief Executive; or(g) is removed from office by the Chief Executive under this section.(2) The Chief Executive may remove a director from office at any time. 5. Filling of vacancy in office of director If the office of a director becomes vacant, the Chief Executive must arrange for a suitable person to be appointed to fill the vacancy in accordance with this Ordinance as soon as practicable after the date on which the vacancy occurred. 6. Acting executive directors etc. (1) The Chief Executive may, from time to time, appoint a person to act in the office of the Managing Director—(a) during the illness or absence of the Managing Director; or(b) during a vacancy in the office of Managing Director, and the person, while so acting, has all the functions of, and is taken to be, the Managing Director.(2) The Chief Executive may, at any time, remove from office a person appointed under subsection (1).(3) The Financial Secretary may, from time to time, appoint a person to act in the office of an executive director (other than the Managing Director)—(a) during the illness or absence of the director; or(b) during a vacancy in the office of such a director,and the person, while so acting, has all the functions of, and is taken to be, an executive director.(4) The Financial Secretary may, at any time, remove from office a person appointed under subsection (3).(5) The deputy chairperson has the functions of the chairperson under sections 8 and 12 of this Schedule, and is taken to be the chairperson for the purposes of those section—(a) during the illness or absence of the chairperson; or(b) during a vacancy in the office of chairperson. 7. Disclosure of pecuniary interests (1) If—(a) a director has a pecuniary interest in a matter that is considered or is to be considered at a meeting of the Authority; and(b) the interest appears to raise a conflict with the proper performance of the director’s duties in relation to the consideration of the matter,the director must, as soon as practicable after becoming aware of the relevant facts, disclose the nature of the interest at a meeting of the Authority.(2) A disclosure by a director at a meeting of the Authority that the director—(a) is an officer or member, or is in the employment, of a specified company or other body; or(b) is a partner, or is in the employment, of a specified person; or(c) has some other specified interest relating to a specified company or other body or to a specified person,is a sufficient disclosure of the nature of the interest in any matter relating to that company or other body or to that person which may arise after the date of the disclosure and which is required to be disclosed under subsection (1).(3) Particulars of any disclosure made under this section must be recorded by the Authority in a book kept for the purpose and that book must be open at all reasonable hours to inspection by any person.(4) After a director has disclosed the nature of any interest in any matter, the director must not, unless the Authority otherwise determines—(a) be present during any deliberation of the Authority with respect to the matter; or(b) take part in any decision of the Authority with respect to the matter.(5) For the purposes of the making of a determination by the Authority under subsection (4), a director who has a pecuniary interest in a matter to which the disclosure relates must not—(a) be present during any deliberation of the Authority for the purpose of making the determination; or(b) take part in the making by the Authority of the determination.(6) A contravention of this section does not invalidate a decision of the Authority.(7) This section does not apply to or in respect of an interest of a director in a matter or thing which arises merely because the director is a member of a registered scheme. Part 3 Procedure at Meetings of Authority 8. General procedure for meetings of Authority (1) Meetings are to be held as often as necessary to enable the Authority to exercise and perform its functions.(2) A meeting of the Authority may be convened by the chairperson.(3) The chairperson must convene a meeting of the Authority on being given a notice for that purpose by 2 or more other directors.(4) The procedure for the convening meetings of the Authority and for the conduct of business at those meetings is, subject to this Schedule, to be as determined by the Authority. 9. Quorum for meetings of Authority The quorum for a meeting of the Authority is a majority of its directors, but at least 3 of the directors present must be non-executive directors. 10. Presiding director at meetings of Authority (1) A meeting of the Authority is to be presided over by—(a) the chairperson; or(b) in the absence of the chairperson, the deputy chairperson; or(c) in the absence of the chairperson and deputy chairperson, a director elected by the directors present at the meeting.(2) The director presiding at a meeting of the Authority has a deliberative vote and also has a casting vote if the numbers of votes for and against a motion are equal. However, that director must consult with the Financial Secretary before exercising a casting vote. 11. Voting at meetings of Authority A decision supported by a majority of the votes cast at a meeting of the Authority at which a quorum is present is the decision of the Authority. 12. Transaction of business otherwise than at ordinary meetings (1) The business of the Authority may be transacted by the circulation of papers among all of the then existing directors.(2) Any of the directors may initiate a motion concerning Authority business by circulating a paper.(3) A motion under this section is to be approved by a simple majority of the directors unless within 3 working days of the date of the paper the chairperson orders, or any 2 other directors require under section 8(3) of this Schedule, that a meeting of the Authority to be convened to consider the motion.(4) Papers may be circulated among directors for the purposes of this section by facsimile message or other means of transmitting the information in the papers concerned. Schedule 1B [ss. 6F & 48]Delegation of Functions of Authority (Schedule 1B added 4 of 1998 s. 2)(Format changes—E.R. 1 of 2012) 1. A delegation under section 6F—(a) may be general or limited; and(b) must be in, or be evidenced by, writing signed by the Managing Director or by a person authorized by the Managing Director for that purpose; and(c) may be revoked, wholly or partly, by the delegator. 2. A delegated function may be exercised only in accordance with any conditions to which the delegation is subject. 3. A delegate may, in the exercise of a function delegated under this section, exercise any other function that is incidental to the delegated function. 4. A delegated function that purports to have been exercised by a delegate is, until the contrary is proved, taken to have been duly exercised by the delegate. 5. A delegated function that is duly exercised by a delegate is taken to have been exercised by the delegator. 6. If—(a) the exercise of a function by a person or body is, by virtue of a document (including an Ordinance), dependent on the opinion, belief or state of mind of the person or body in relation to any matter; and(b) the person or body has delegated the function to some other person or body,the function may be exercised by the delegate on the opinion, belief or state of mind of the delegate in relation to any such matter. 7. If a function is delegated to a particular officer or the holder of a particular office—(a) the delegation does not cease to have effect merely because the person who was the particular officer or the holder of the particular office when the function was delegated ceases to be that officer or the holder of that office; and(b) the function may be exercised (or, in the case of a duty, must be performed) by the person for the time being occupying or acting in the office concerned. 8. A function that has been delegated may, despite the delegation, be exercised by the delegator. 9. Section 6F and this Schedule applies to a sub-delegation of a function in the same way as it applies to a delegation of a function, but only in so far as this Ordinance or the document that authorizes the delegation of the function also authorizes the sub-delegation of the function. Schedule 2 [ss. 2, 10A & 48](Amended 18 of 2008 s. 13)Minimum Level of Relevant Income Per Contribution Period (Format changes—E.R. 1 of 2012) 1. The minimum level of relevant income, in the case of a relevant employee (not being a casual employee who is a member of an industry scheme), is— (Amended 18 of 2008 s. 13)(a) if the employee is remunerated on a monthly basis, $7,100 per month; (b) if the employee is remunerated more frequently than on a monthly basis, $280 per day;(c) if the employee is remunerated less frequently than on a monthly basis, $7,100 per month, that amount as prorated. 2. The minimum level of relevant income is, in the case of a casual employee who is a member of an industry scheme, $280 per day. 3. The minimum level of relevant income is, in the case of a self-employed person, $7,100 per month or $85,200 per year.(Schedule 2 replaced 29 of 2002 s. 12. Amended 18 of 2008 s. 13; L.N. 120 of 2011; L.N. 133 of 2013) Editorial Note: Please see— 1. Section 4 of the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 2) Notice 2011 (L.N. 120 of 2011) for the application provision relating to the amendments made by section 3 of that Notice. 2. Section 4 of the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 2) Notice 2013 (L.N. 133 of 2013) for the application provision relating to the amendments made by section 3 of that Notice. Schedule 3 [ss. 2, 10A & 48](Amended 18 of 2008 s. 14)Maximum Level of Relevant Income Per Contribution Period (Format changes—E.R. 1 of 2012) 1. The maximum level of relevant income, in the case of a relevant employee (not being a casual employee who is a member of an industry scheme), is— (Amended 18 of 2008 s. 14)(a) if the employee is remunerated on a monthly basis, $30,000 per month;(b) if the employee is remunerated more frequently than on a monthly basis, $1,000 per day;(c) if the employee is remunerated less frequently than on a monthly basis, $30,000 per month, that amount as prorated. 2. The maximum level of relevant income is, in the case of a casual employee who is a member of an industry scheme, $1,000 per day. 3. The maximum level of relevant income is, in the case of a self-employed person, $30,000 per month or $360,000 per year.(Schedule 3 replaced 29 of 2002 s. 12. Amended 18 of 2008 s. 14; L.N. 168 of 2011; L.N. 135 of 2013) Editorial Note: Please see— 1. Section 4 of the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 3) Notice 2011 (L.N. 168 of 2011) for the application provision relating to the amendments made by section 3 of that Notice. 2. Section 4 of the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 3) Notice 2013 (L.N. 135 of 2013) for the application provision relating to the amendments made by section 3 of that Notice. Schedule 4 (Repealed 4 of 1998 s. 2) Schedule 5 [ss. 24 & 48]Covenants to be Implied in Governing Rules (Format changes—E.R. 1 of 2012) For the purposes of section 24 of the Ordinance, the following covenants are implied in the governing rules of a registered scheme—(a) that the approved trustee will comply with those governing rules;(b) that, in administering the scheme, the approved trustee will exercise the care, skill, diligence and prudence to be reasonably expected of a person who is administering a provident fund scheme and is familiar with the operation of provident fund schemes;(c) that the approved trustee will use in the administration of the scheme all knowledge and skill that the trustee has, or ought reasonably to be expected to have, because of the trustee’s profession or business, in so far as that knowledge and skill is relevant to the operation of the scheme;(d) that the approved trustee will act in the interests of scheme members and not in the trustee’s own interests;(e) that the approved trustee will ensure that the funds of the scheme are invested in different investments so as to minimize the risk of losses of those funds, unless in particular circumstances it is prudent not to do so. (Added 4 of 1998 s. 2) Schedule 5A [ss. 33 & 48]Procedure at Inquiries (Schedule 5A added 4 of 1998 s. 2)(Format changes—E.R. 1 of 2012) 1. Approved trustee to be given notice of inquiry Not later than 7 days before holding an inquiry under section 33, the Authority must give the approved trustee concerned 7 days’ notice of the date on which, and the time and place at which, the inquiry is to begin. 2. Authority not bound by rules of evidence At the inquiry, the Authority must comply with the rules of natural justice, but is not bound by the rules of, or the practice relating to, evidence and may inform itself on any matter as it thinks appropriate. 3. Representation at inquiry (1) At the inquiry, the approved trustee concerned is entitled—(a) to be represented by a person of the trustee’s choice; and(b) to adduce to the Authority evidence (either orally or in writing), and to address the Authority on matters, relevant to the determination of the inquiry.(2) The approved trustee’s representative is entitled—(a) to be present, and to advise that trustee, throughout the inquiry; and(b) to address the Authority on that trustee’s behalf. 4. Authority to give decision in writing At the conclusion of the inquiry, the Authority must give its decision in writing and must specify in the decision the grounds on which it is based. The Authority must ensure that a copy of the decision is given to the approved trustee concerned. Schedule 5B [s. 34ZZK]Transitional and Saving Provisions for Part 4A (Amended E.R. 1 of 2013)(Schedule 5B added 16 of 2012 s. 21) 1. Interpretation (1) In this Schedule—List of Registered MPF Intermediaries (註冊強積金中介人名單) means the List of Registered MPF Intermediaries that, immediately before 1 November 2012, was kept by the Authority at its head office in Hong Kong;List of Responsible Officers (負責人員名單) means the List of Responsible Officers that, immediately before 1 November 2012, was kept by the Authority at its head office in Hong Kong;transitional period (過渡期) means the period of 2 years beginning on 1 November 2012.(2) An expression used in this Schedule, and defined or otherwise explained in Part 4A, has the same meaning as in that Part.(Amended E.R. 1 of 2013) 2. Type A qualifying capacity (1) For the purposes of this Schedule, a person holds a Type A qualifying capacity if the person—(a) is authorized under section 8 of the Insurance Companies Ordinance (Cap. 41) to carry on long term business within the meaning of that Ordinance;(b) is an authorized long term insurance broker;(c) is an authorized financial institution; or (d) is licensed under section 116 of the Securities and Futures Ordinance (Cap. 571) to carry on Type 1 or Type 4 regulated activity, or both, within the meaning of that Ordinance.(2) For the purposes of this Schedule, a person ceases to hold the Type A qualifying capacity mentioned in subsection (1)(c) if—(a) for any authorized financial institution, the authorization is revoked under section 22 of the Banking Ordinance (Cap. 155);(b) for an authorized financial institution that is registered under section 119 of the Securities and Futures Ordinance (Cap. 571) for Type 1 or Type 4 regulated activity within the meaning of that Ordinance, the registration is revoked under section 196(1)(i)(A) of that Ordinance in relation to that regulated activity; or(c) for an authorized financial institution that is so registered for such Type 1 and Type 4 regulated activities, the registration is revoked under that section 196(1)(i)(A) in relation to those regulated activities.(3) Subsection (2) does not limit the way in which a person ceases to hold any Type A qualifying capacity.(4) For the purposes of this Schedule, a person has a Type A qualifying capacity suspended if—(a) in the case of the capacity mentioned in subsection (1)(b) as an authorized long term insurance broker that is a member of a body of insurance brokers approved by the Insurance Authority under section 70 of the Insurance Companies Ordinance (Cap. 41), the membership is suspended;(b) in the case of the capacity mentioned in subsection (1)(c)—(i) for any authorized financial institution, the authorization is suspended under section 24(1) or 25(1) of the Banking Ordinance (Cap. 155); or(ii) for an authorized financial institution—(A) that is registered under section 119 of the Securities and Futures Ordinance (Cap. 571) for Type 1 or Type 4 regulated activity within the meaning of that Ordinance, the registration is suspended under section 196(1)(i)(B) or 197(1) of that Ordinance, or is deemed to be suspended under section 197(4) of that Ordinance, in relation to that regulated activity; or(B) that is so registered for such Type 1 and Type 4 regulated activities, the registration is suspended under that section 196(1)(i)(B) or 197(1), or is deemed to be suspended under that section 197(4), in relation to those regulated activities; or(c) in the case of the qualification mentioned in subsection (1)(d)—(i) as a person licensed to carry on Type 1 or Type 4 regulated activity, the licence is suspended under section 194(1)(i)(B) or 195(1) of the Securities and Futures Ordinance (Cap. 571), or is deemed to be suspended under section 195(4) of that Ordinance, in relation to that regulated activity; or(ii) as a person licensed to carry on Type 1 and Type 4 regulated activities, the licence is suspended under that section 194(1)(i)(B) or 195(1), or is deemed to be suspended under that section 195(4), in relation to those regulated activities. 3. Type B qualifying capacity (1) For the purposes of this Schedule, a person holds a Type B qualifying capacity if the person—(a) is an appointed long term insurance agent;(b) is registered with the Insurance Agents Registration Board as a responsible officer of an appointed long term insurance agent;(c) is registered with the Insurance Authority, the Insurance Agents Registration Board, or a relevant insurance broker body—(i) as a technical representative of an appointed long term insurance agent; or(ii) as a technical representative of an authorized long term insurance broker;(d) is registered with the Insurance Authority, or a relevant insurance broker body, as a chief executive of an authorized long term insurance broker;(e) is licensed under section 120 of the Securities and Futures Ordinance (Cap. 571) to carry on Type 1 or Type 4 regulated activity, or both, within the meaning of that Ordinance;(f) is an officer or employee of a company authorized under section 8 of the Insurance Companies Ordinance (Cap. 41) to carry on long term business within the meaning of that Ordinance; or(g) is an officer or employee of an authorized financial institution.(2) For the purposes of this Schedule—(a) a person ceases to hold the Type B qualifying capacity mentioned in subsection (1)(f) if—(i) for an officer or employee who is an appointed long term insurance agent, the appointment as an agent is terminated under a code of practice approved by the Insurance Authority under section 67 of the Insurance Companies Ordinance (Cap. 41); or(ii) for an officer or employee who is registered with the Insurance Agents Registration Board as a responsible officer or technical representative of an appointed long term insurance agent, the registration is terminated under such a code of practice; and(b) a person ceases to hold the Type B qualifying capacity mentioned in subsection (1)(g) if—(i) for an officer or employee—(A) who is a relevant individual registered under section 20 of the Banking Ordinance (Cap. 155) as engaged in respect of Type 1 or Type 4 regulated activity within the meaning of the Securities and Futures Ordinance (Cap. 571), all or any of the officer’s or employee’s relevant particulars are removed from the register under section 58A(1)(c) of the Banking Ordinance (Cap. 155) in relation to that regulated activity; or(B) who is a relevant individual so registered as engaged in respect of such Type 1 and Type 4 regulated activities, all or any of the officer’s or employee’s relevant particulars are removed from the register under that section 58A(1)(c) in relation to those regulated activities; or(ii) for an officer or employee who, with the consent of the Monetary Authority under section 71C of the Banking Ordinance (Cap. 155), is—(A) an executive officer of a registered institution appointed under section 71D of that Ordinance to be responsible for directly supervising the conduct of each business conducted by the registered institution that constitutes Type 1 or Type 4 regulated activity within the meaning of the Securities and Futures Ordinance (Cap. 571), the consent is withdrawn under section 71C(4)(c) of the Banking Ordinance (Cap. 155) in relation to that regulated activity; or(B) such an executive officer so appointed to be responsible for directly supervising the conduct of each business that constitutes such Type 1 and Type 4 regulated activities, the consent is withdrawn under that section 71C(4)(c) in relation to those regulated activities.(3) Subsection (2) does not limit the way in which a person ceases to hold any Type B qualifying capacity.(4) For the purposes of this Schedule, a person has a Type B qualifying capacity suspended if—(a) in the case of the capacity mentioned in subsection (1)(a), the appointment as an agent is suspended under a code of practice approved by the Insurance Authority under section 67 of the Insurance Companies Ordinance (Cap. 41);(b) in the case of the capacity mentioned in subsection (1)(b) or (c)(i), the registration is suspended under such a code of practice;(c) in the case of the capacity mentioned in subsection (1)(c)(ii) or (d) as a technical representative or chief executive of an authorized long term insurance broker that is a member of a body of insurance brokers approved by the Insurance Authority under section 70 of the Insurance Companies Ordinance (Cap. 41)—(i) the person is suspended from acting as such technical representative or chief executive; and(ii) the suspension is shown in a register of technical representatives or a register of chief executives (as the case may be) kept by the body of insurance brokers;(d) in the case of the capacity mentioned in subsection (1)(e)—(i) as a person licensed to carry on Type 1 or Type 4 regulated activity, the licence is suspended under section 194(1)(i)(B) or 195(1) of the Securities and Futures Ordinance (Cap. 571), or is deemed to be suspended under section 195(4) of that Ordinance, in relation to that regulated activity;

or(ii) as a person licensed to carry on Type 1 and Type 4 regulated activities, the licence is suspended under that section 194(1)(i)(B) or 195(1), or is deemed to be suspended under that section 195(4), in relation to those regulated activities;(e) in the case of the capacity mentioned in subsection (1)(f)—(i) for an officer or employee who is an appointed long term insurance agent, the appointment as an agent is suspended under a code of practice approved by the Insurance Authority under section 67 of the Insurance Companies Ordinance (Cap. 41); or(ii) for an officer or employee who is registered with the Insurance Agents Registration Board as a responsible officer or technical representative of an appointed long term insurance agent, the registration is suspended under such a code of practice; or(f) in the case of the capacity mentioned in subsection (1)(g)—(i) for an officer or employee—(A) who is a relevant individual registered under section 20 of the Banking Ordinance (Cap. 155) as engaged in respect of Type 1 or Type 4 regulated activity within the meaning of the Securities and Futures Ordinance (Cap. 571), all or any of the officer’s or employee’s relevant particulars are suspended from the register under section 58A(1)(d) of the Banking Ordinance (Cap. 155) in relation to that regulated activity; or(B) who is a relevant individual so registered as engaged in respect of such Type 1 and Type 4 regulated activities, all or any of the officer’s or employee’s relevant particulars are suspended from the register under that section 58A(1)(d) in relation to those regulated activities; or(ii) for an officer or employee who, with the consent of the Monetary Authority under section 71C of the Banking Ordinance (Cap. 155), is—(A) an executive officer of a registered institution appointed under section 71D of that Ordinance to be responsible for directly supervising the conduct of each business conducted by the registered institution that constitutes Type 1 or Type 4 regulated activity within the meaning of the Securities and Futures Ordinance (Cap. 571), the consent is suspended under section 71C(4)(d) of the Banking Ordinance (Cap. 155) in relation to that regulated activity; or(B) such an executive officer so appointed to be responsible for directly supervising the conduct of each business that constitutes such Type 1 and Type 4 regulated activities, the consent is suspended under that section 71C(4)(d) in relation to those regulated activities. 4. Transitional arrangements for corporate intermediaries with Type A qualifying capacity (1) This section applies to a person who, immediately before 1 November 2012—(a) was shown in the List of Registered MPF Intermediaries as a corporate intermediary; and(b) was not an appointed long term insurance agent, or was both an appointed long term insurance agent and a holder of a Type A qualifying capacity.(2) The person is to be regarded as being registered on 1 November 2012 under section 34T(4) as a principal intermediary.(3) The registration as a principal intermediary by virtue of subsection (2) that subsists immediately before the occurrence of an event specified in subsection (4) ceases to subsist on that occurrence.(4) The event is—(a) if the person makes an application under section 34T(1) during the transitional period, the application being granted or rejected; or(b) in any other case, the expiry of the transitional period. 5. Transitional arrangements for corporate intermediaries without Type A qualifying capacity (1) This section applies to a person who, immediately before 1 November 2012—(a) was shown in the List of Registered MPF Intermediaries as a corporate intermediary; and(b) was an appointed long term insurance agent, but was not a holder of a Type A qualifying capacity.(2) Subject to subsection (5), the person is to be regarded as being—(a) registered on 1 November 2012 under section 34U(4) as a subsidiary intermediary; and (b) approved on 1 November 2012 under section 34V(4) as being attached to another person specified in the notice mentioned in subsection (5).(3) The registration as a subsidiary intermediary, or the approval of the attachment to that other person, by virtue of subsection (2) that subsists immediately before the occurrence of an event specified in subsection (4) ceases to subsist on that occurrence.(4) The event is—(a) if the person makes an application under section 34T(1) during the transitional period, the application being granted or rejected; or(b) in any other case, the expiry of the transitional period.(5) Subsection (2) does not apply unless, before 1 November 2012, the Authority was given a notice in writing that—(a) a person mentioned in section 4(1) of this Schedule consented to the person to which this section applies being an intermediary for carrying on regulated activities for the person so mentioned; and(b) the person so mentioned is specified in the notice. 6. Transitional arrangements for individual intermediaries (1) This section applies to a person who, immediately before 1 November 2012, was registered in the List of Registered MPF Intermediaries as an individual intermediary sponsored by another person.(2) The person is to be regarded as being—(a) registered on 1 November 2012 under section 34U(4) as a subsidiary intermediary; and (b) approved on 1 November 2012 under section 34V(4) as being attached to that other person.(3) The registration as a subsidiary intermediary, or the approval of the attachment to that other person, by virtue of subsection (2) that subsists immediately before the occurrence of an event specified in subsection (4) ceases to subsist on that occurrence.(4) The event is—(a) if the person makes an application under section 34U(1) during the transitional period, the application being granted or rejected; or(b) in any other case, the expiry of the transitional period. 7. Transitional arrangements for responsible officers (1) This section applies to an individual who, immediately before 1 November 2012, was shown in the List of Responsible Officers as being designated by a person specified in subsection (2) as a responsible officer of the person.(2) That person is one who, immediately before 1 November 2012—(a) was shown in the List of Registered MPF Intermediaries as a corporate intermediary; and(b) was not an appointed long term insurance agent, or was both an appointed long term insurance agent and a holder of a Type A qualifying capacity.(3) The individual is to be regarded as being approved on 1 November 2012 under section 34W(4) as being a responsible officer of the person.(4) The approval of the individual as a responsible officer of the person by virtue of subsection (3) that subsists immediately before the occurrence of an event specified in subsection (5) ceases to subsist on that occurrence.(5) The event is—(a) if, during the transitional period, the person applies under section 34W(1) for approval of the individual as an officer with specified responsibilities in relation to the person, the application being granted or rejected; or(b) in any other case, the expiry of the transitional period. 8. Application to persons regarded as principal intermediary (1) This section applies to a person who, by virtue of section 4(2) of this Schedule, is regarded as being registered as a principal intermediary.(2) In its application to the person, Part 4A has effect subject to subsections (3), (4) and (5). (3) Section 34Z(4), (5) and (6) is to be replaced by the following— “(4) The following industry regulator is to be assigned as the regulator of the person for the purposes of this Part—(a) if the person holds the Type A qualifying capacity mentioned in section 2(1)(a) or (b) of Schedule 5B, the Insurance Authority;(b) if the person holds the Type A qualifying capacity mentioned in section 2(1)(c) of Schedule 5B, the Monetary Authority; or(c) if the person holds the Type A qualifying capacity mentioned in section 2(1)(d) of Schedule 5B, the Securities and Futures Commission. (5) If the person holds the Type A qualifying capacity mentioned in section 2(1)(c) of Schedule 5B, and the Type A qualifying capacity mentioned in section 2(1)(a) or (b) of Schedule 5B—(a) subject to paragraph (b), the Monetary Authority is to be assigned as the regulator of the person for the purposes of this Part; or(b) where the Authority is satisfied that the person carries on the majority of its business activities as the holder of the Type A qualifying capacity mentioned in section 2(1)(a) or (b) of Schedule 5B, the Insurance Authority is to be assigned as the regulator of the person for the purposes of this Part. (6) If the person holds the Type A qualifying capacity mentioned in section 2(1)(a) or (b) of Schedule 5B, and the Type A qualifying capacity mentioned in section 2(1)(d) of Schedule 5B—(a) subject to paragraph (b), the Insurance Authority is to be assigned as the regulator of the person for the purposes of this Part; or(b) where the Authority is satisfied that the person carries on the majority of its business activities as the holder of the Type A qualifying capacity mentioned in section 2(1)(d) of Schedule 5B, the Securities and Futures Commission is to be assigned as the regulator of the person for the purposes of this Part.”. (4) Section 34ZC is to be replaced by the following— “34ZC. Principal intermediary ceasing to hold Type A qualifying capacity etc. (1) This section applies if—(a) a person is a principal intermediary; and(b) the person—(i) ceases to hold the relevant Type A qualifying capacity; or(ii) has the relevant Type A qualifying capacity suspended.(2) The registration of the person as a principal intermediary—(a) in the case of subsection (1)(b)(i), is revoked at the time the person ceases to hold the Type A qualifying capacity; or(b) in the case of subsection (1)(b)(ii), is suspended for the period during which that suspension is in force.(3) In this section— relevant Type A qualifying capacity (有關甲類合資格身分)— (a) in relation to a person whose frontline regulator is the Insurance Authority, means the Type A qualifying capacity mentioned in section 2(1)(a) or (b) of Schedule 5B; (b) in relation to a person whose frontline regulator is the Monetary Authority, means the Type A qualifying capacity mentioned in section 2(1)(c) of Schedule 5B; or (c) in relation to a person whose frontline regulator is the Securities and Futures Commission, means the Type A qualifying capacity mentioned in section 2(1)(d) of Schedule 5B.”. (5) Section 34ZE(1)(c) is to be replaced by the following— “(c) a principal intermediary—(i) acquires any qualification as a Type A regulatee;(ii) ceases to hold any Type A qualifying capacity; or(iii) has any Type A qualifying capacity suspended.”. (Amended E.R. 1 of 2013) 9. Application to persons regarded as subsidiary intermediary (1) This section applies to a person who, by virtue of section 5(2) or 6(2) of this Schedule, is regarded as being—(a) registered as a subsidiary intermediary; and(b) approved as being attached to another person who is regarded as being registered as a principal intermediary.(2) In its application to the person, Part 4A has effect subject to subsections (3) and (4).(3) Section 34ZF is to be replaced by the following— “34ZF. Subsidiary intermediary ceasing to hold Type B qualifying capacity etc. (1) This section applies—(a) if a person is a subsidiary intermediary attached to a principal intermediary; and(b) if—(i) the person—(A) ceases to hold the relevant Type B qualifying capacity; or(B) ceases to hold a Type B qualifying capacity (other than the relevant Type B qualifying capacity), and on the cessation no longer holds any Type B qualifying capacity; or(ii) the person—(A) has the relevant Type B qualifying capacity suspended; or(B) has a Type B qualifying capacity (other than the relevant Type B qualifying capacity) suspended, and on the suspension no longer holds any Type B qualifying capacity that is not under suspension.(2) The approval of the attachment of the person to the principal intermediary—(a) in the case of subsection (1)(b)(i), is revoked at the time the person ceases to hold the relevant Type B qualifying capacity or the Type B qualifying capacity; or(b) in the case of subsection (1)(b)(ii), is suspended for the period during which that suspension is in force.(3) Where the person is not approved as being attached to any principal intermediary after a revocation under subsection (2)(a), the registration of the person as a subsidiary intermediary is revoked if—(a) no application has been made under section 34V(1) for approval of attachment of the person to a principal intermediary within 90 days after the date on which the revocation under subsection (2)(a) takes effect; or(b) such an application has been made within 90 days after the date on which the revocation under subsection (2)(a) takes effect, and the Authority has rejected the application.(4) In this section— relevant Type B qualifying capacity (有關乙類合資格身分)— (a) in relation to a person whose frontline regulator is the Insurance Authority, means the Type B qualifying capacity mentioned in section 3(1)(a), (b), (c), (d) or (f) of Schedule 5B; (b) in relation to a person whose frontline regulator is the Monetary Authority, means the Type B qualifying capacity mentioned in section 3(1)(g) of Schedule 5B; or (c) in relation to a person whose frontline regulator is the Securities and Futures Commission, means the Type B qualifying capacity mentioned in section 3(1)(e) of Schedule 5B.”. (4) Section 34ZI(1)(c) is to be replaced by the following— “(c) a subsidiary intermediary—(i) acquires any qualification as a Type B regulatee;(ii) ceases to hold any Type B qualifying capacity; or(iii) has any Type B qualifying capacity suspended; or”. (Amended E.R. 1 of 2013) Schedule 6 [ss. 35, 36 & 48]Decisions which may be the Subject of an Appeal (Format changes—E.R. 1 of 2012) 1. A decision of the Authority to reject an application for approval as an approved trustee. (Added 4 of 1998 s. 2) 2. A decision of the Authority imposing conditions on an applicant for approval as an approved trustee. (Added 4 of 1998 s. 2) 2A. A decision of the Authority amending conditions imposed on an approved trustee. (Added 2 of 2002 s. 20) 2B. A decision of the Authority imposing conditions on an approved trustee subsequent to the trustee’s approval. (Added 2 of 2002 s. 20) 3. A decision of the Authority to suspend the approval of an approved trustee. (Added 4 of 1998 s. 2) 4. A decision of the Authority to revoke the approval of an approved trustee. (Added 4 of 1998 s. 2) 5. A decision of the Authority to refuse to register a provident fund scheme as an employer sponsored scheme or a master trust scheme. (Added 4 of 1998 s. 2) 6. A decision of the Authority imposing conditions on an applicant for the registration of a provident fund scheme. (Added 4 of 1998 s. 2) 6AA. A decision of the Authority to reject an application for—(a) the approval of a constituent fund of a registered scheme; or(b) the cancellation of approval granted in respect of a constituent fund of a registered scheme. (Added 1 of 2015 s. 19) 6A. A decision of the Authority amending conditions imposed on the administration or marketing of a registered scheme. (Added 2 of 2002 s. 20) 6B. A decision of the Authority imposing conditions on the administration or marketing of a registered scheme subsequent to the scheme’s registration. (Added 2 of 2002 s. 20) 7. A decision of the Authority to suspend an approved trustee’s administration of a registered scheme. (Added 4 of 1998 s. 2) 8. A decision of the Authority to terminate an approved trustee’s administration of a registered scheme. (Added 4 of 1998 s. 2) 9. A decision of the Authority to refuse to consent to the voluntary winding up of an employer sponsored scheme. (Added 4 of 1998 s. 2) 10. A decision of the Authority to reject an application for its consent to the restructuring of one or more registered schemes. (Replaced 29 of 2002 s. 13) 11. (Repealed 29 of 2002 s. 13) 12. A decision of the Authority to reject an application for the granting of an exemption under section 5 of the Ordinance. (Added 4 of 1998 s. 2) 13. A decision of the Authority to revoke an exemption granted under section 5 of the Ordinance. (Added 4 of 1998 s. 2) 14. A decision of the Authority—(a) under section 5 of the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap. 485 sub. leg. B) to refuse an application for an exemption certificate;(b) under section 8 of that Regulation to refuse an application to withdraw an exemption certificate;(c) under section 12 of that Regulation to withdraw an exemption certificate;(d) under section 16 of that Regulation to refuse an application for an exemption certificate;(e) under section 19 of that Regulation to refuse an application to withdraw an exemption certificate;(f) under section 23 of that Regulation to withdraw an exemption certificate. (Added L.N. 205 of 1998) 15. A decision of the Authority—(a) under section 34T(4) not to register a person as an intermediary for carrying on regulated activities;(b) under section 34U(4) not to register a person as an intermediary for carrying on regulated activities for a principal intermediary to which the person is to be attached;(c) under section 34V(4) not to approve a person as being attached to a principal intermediary for the purpose of carrying on regulated activities;(d) under section 34W(4) not to approve an individual as an officer with specified responsibilities in relation to a principal intermediary;(e) under section 34X(2) or (3) to impose a condition on a registration or approval;(f) under section 34X(5) to amend such a condition; or(g) under section 34ZK(2) to revoke the approval of an individual as a responsible officer of a principal intermediary. (Added 16 of 2012 s. 22) 16. A decision of the Authority under section 34ZW to make a disciplinary order. (Added 16 of 2012 s. 22) Schedule 7 [ss. 15 & 48](Amended 1 of 2015 s. 20)Age Specified for the Purposes of Section 15(2) (Format changes—E.R. 1 of 2012) 60 years of age Schedule 8 [ss. 2 & 48]Associates and Associated Companies (Amended 1 of 2008 s. 52)(Schedule 8 replaced 4 of 1998 s. 2)(Format changes—E.R. 1 of 2012) Part 1 Associates 1. Effect of this Schedule (1) This Schedule has effect for the purpose of determining whether a person is the associate of another for the purposes of this Ordinance.(2) A person is an associate of another person for the purposes of this Ordinance only as provided by this Schedule. 2. Associates of companies For the purposes of this Ordinance, an associate of a company includes each of the following—(a) an officer of the company;(b) a close relative, partner or employee of an officer of the company;(c) an associated company;(d) an officer of an associated company;(e) a close relative, partner or employee of an officer of an associated company. 3. Matters relating to voting shares (1) If a reference in a provision of this Ordinance to an associate of another person relates to the extent of a power to exercise, or to control the exercise of, the voting power attached to voting shares of a company, the reference includes a person with whom the other person has, or proposes to enter into—(a) an agreement as a result of which one of those persons has or will have power (even if it is in any way qualified)—(i) to exercise voting power attached to shares in the company; or(ii) to control, directly or indirectly, the exercise of that voting power; or(iii) to influence substantially the exercise of that voting power; or(b) an agreement for the purpose of controlling or influencing—(i) the composition of the company’s board; or(ii) the conduct of affairs of the company; or(c) an agreement under which one of those persons—(i) will or may acquire; or(ii) may be required by the other of those persons to acquire,shares in the company in which the other has a relevant interest; or(d) an agreement under which one of those persons may be required to dispose of shares in the company in accordance with the other’s directions,whatever other effect the agreement may have.(2) In relation to a matter concerning shares of a company, a person may be an associate of the company and the company may be an associate of a person. 4. References to associates (1) A reference in this Ordinance to an associate of another person includes a reference to—(a) a person in partnership with whom the other person carries on a business; and(b) subject to section 5(2) of this Schedule, a person who is a partner of the other person otherwise than by virtue of carrying on a business in partnership with the other person; and(c) a trustee of a trust in relation to which the other person benefits, or is capable of benefiting, otherwise than as a result of transactions entered into in the ordinary course of business in connection with the lending of money; and(d) an officer of a company that carries on a business and of which the other person is also an officer; and(e) subject to section 5(2) of this Schedule, an officer of a company that does not carry on a business and of which the other person is also an officer.(2) A reference in this Ordinance to an associate of another person also includes a reference to—(a) a person in concert with whom the other person is acting, or proposes to act; and(b) a person with whom the other person is, or proposes to become, an associate, whether formally or informally, in any other way,in respect of the matter to which the reference relates.(3) If a person—(a) has entered, or proposes to enter, into a transaction; or(b) has done, or proposes to do, any act, in order to become associated with another person as mentioned in an applicable provision of this Schedule, the persons are taken to be associates of each other for the purposes of that provision. 5. Exclusions (1) A person is not an associate of another person by virtue of section 3(1) or 4(2) or (3) of this Schedule only because of any of the following—(a) one of the persons gives advice to the other, or acts on the other’s behalf, in the proper performance of the functions attaching to a professional capacity or a business relationship;(b) one of the persons (a client) gives specific instructions to the other, whose ordinary business includes dealing in securities, to acquire shares on the client’s behalf in the ordinary course of that business;(c) one of the persons has appointed the other (otherwise than for valuable consideration given by the other or by an associate of the other) to vote as a proxy or representative at a meeting of members, or of a class of members, of a company.(2) For the purposes of proceedings under this Ordinance in which it is alleged that a person was an associate of another because of section 4(1)(b) or (e) of this Schedule, the person is taken to have been an associate of the other in relation to a matter by virtue of that paragraph only if it is proved that the person knew, or ought to have known, at that time the material particulars of that matter. (Amended E.R. 4 of 2019) 6. Associates of composite persons For the purposes of this Ordinance, a reference to an associate includes, in a case where 2 or more persons constitute the approved trustee of a registered scheme, a reference to an associate of any of those persons. Part 2 Relevant Interests in Shares 7. Terminology used in this Part (1) For the purposes of this Schedule, a reference to a power to vote in respect of a share is a reference to a power to exercise, or to control the exercise of, the right to vote attached to the share.(2) A reference in this Schedule to power to dispose of a share includes a reference to power to exercise control over the disposal of the share.(3) A reference in this Schedule to power or control includes a reference to power or control that—(a) is direct or indirect; or(b) is, or can be, exercised as a result of, by means of, in breach of, or by revocation of, a trust, agreement or practice, whether the trust, agreement or practice is enforceable or not.(4) For the purposes of this Schedule—(a) a power to vote in respect of a share; or(b) a power to dispose of a share,that is exercisable by 2 or more persons jointly is taken to be exercisable by any of those persons.(5) A reference in this Schedule to a controlling interest includes a reference to an interest that gives control. 8. When person has relevant interest in a share A person has a relevant interest in a share for the purposes of this Schedule if the person has—(a) power to vote in respect of a voting share in a company; or(b) power to dispose of the share. 9. Control of company having power in relation to a share If a company has, or is by this Part taken to have, power to vote in respect of a share or power to dispose of a share, a person is to be regarded, for the purposes of this Schedule, as having in relation to the share the same power as the company has, or is taken to have—(a) if the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person in relation to the exercise of the power to vote in respect of the share; or(b) if the person has a controlling interest in the company. 10. Control of relevant percentage of voting power in company having power in relation to a share If a company or an associate of a company has, or is by this Part (other than this section) taken to have, power to vote in respect of a share, or power to dispose of a share, a person is to be regarded, for the purposes of this Schedule, as having in relation to the share the same power as the company or associate has, or is taken to have, if—(a) the person has; or(b) an associate of the person has; or(c) associates of the person together have; or(d) the person and an associate or associates of the person together have, power to vote in respect of no less than 20 per cent of the voting shares in the company. 11. When person is taken to have relevant interest in shares If—(a) a person—(i) has entered into an agreement with another person with respect of an issued share in which the other person has a relevant interest; or(ii) has a right enforceable against another person in relation to an issued share in which the other person has a relevant interest (whether the right is enforceable presently or in the future and whether or not on the fulfilment of a condition); or(iii) has an option granted by another person, or has granted to another person an option, with respect to an issued share in which the other person has a relevant interest; and(b) on performance of the relevant agreement, enforcement of the right, or exercise of the option, the first-mentioned person would have a relevant interest in the share, the first-mentioned person is to be regarded, for the purposes of this Part, as having that relevant interest in the share. 12. Control of company having a relevant interest by virtue of section 11 If a company is, because of section 11 of this Schedule, to be regarded as having a relevant interest in a share in another company, a person is taken, for the purposes of this Part, to have a relevant interest in the share if—(a) the first-mentioned company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person in relation to the exercise of—(i) a power to vote in respect of shares in the other company; or(ii) a power to dispose of shares in the other company; or(b) the person has a controlling interest in the first-mentioned company; or(c) the person has power to vote in respect of no less than 20 per cent of the voting shares in the first-mentioned company. 13. Matters not affecting application of this Part (1) It is immaterial for the purposes of this Part whether or not power to vote in respect of a share, or power to dispose of a share—(a) is express or implied or formal or informal; or(b) is exercisable by a person alone or jointly with any other person or persons; or(c) cannot be related to a particular share; or(d) is, or can be made, subject to restraint or restriction.(2) A relevant interest in a share is not to be disregarded only because of its remoteness or how it arose. 14. Exclusions: money lenders A relevant interest of a person in a share is to be disregarded for the purposes of this Schedule if—(a) the person’s ordinary business includes lending money; and (b) the person has authority to exercise powers as the holder of the relevant interest only because of a security given for the purposes of a transaction entered into in the ordinary course of business in connection with lending money, other than a transaction entered into with an associate of the person. 15. Exclusions: certain trustees A relevant interest of a person in a share is to be disregarded for the purposes of this Schedule if the share is subject to a trust, the person has the relevant interest as a trustee of the trust and—(a) a beneficiary under the trust is, by virtue of section 11 of this Schedule, regarded as having a relevant interest in the share because the beneficiary has a presently enforceable and unconditional right referred to in paragraph (b) of that section; or(b) the person is a bare trustee. 16. Exclusions: instructions to securities dealer to dispose of share A relevant interest of a person in a share is to be disregarded for the purposes of this Schedule if the person’s ordinary business includes dealing in securities and the person has authority to exercise powers as the holder of the relevant interest only because of instructions given to the person, by or on behalf of another person, to dispose of the share on the other person’s behalf in the ordinary course of that business. 17. Exclusions: honorary proxies A relevant interest of a person in a share is to be disregarded for the purposes of this Schedule if the person has it only because of having been appointed, otherwise than for valuable consideration given by the person or an associate of the person, to vote as a proxy or representative at a meeting of members, or of a class of members, of a company. 18. Effect of this Part A person has a relevant interest in a share for the purposes of this Schedule only as provided by this Part. Part 3 Associated Companies (Amended 1 of 2008 s. 52) 19. (Repealed 1 of 2008 s. 52) 20. Associated companies Companies are related to each other (and thus associates of each other) for the purposes of this Ordinance if one of the companies—(a) has power to vote in respect of no less than 20 per cent of the voting shares of the other company; or(b) holds no less than 20 per cent of the issued share capital of the other company; or(c) is a subsidiary of the other company; or(d) is a subsidiary of a company that is an associate of the other company. Schedule 9 (Omitted as spent—E.R. 1 of 2012) Schedule 10 [ss. 34DA, 34DB & 34DE]Requirements for Default Investment Strategy (Schedule 10 added 9 of 2016 s. 11) Part 1 Preliminary 1. Interpretation In this Schedule—Age 65 Plus Fund (65歲後基金), in relation to a registered scheme, means the constituent fund made available in the scheme under section 2(a) of this Schedule;Core Accumulation Fund (核心累積基金), in relation to a registered scheme, means the constituent fund made available in the scheme under section 2(b) of this Schedule;higher risk assets (較高風險資產) means any assets identified as such in the guidelines for the purposes of this Schedule. Part 2 Requirements for Default Investment Strategy 2. Constituent funds The approved trustee of a registered scheme must make available in the scheme the following constituent funds for investments under the default investment strategy of the scheme—(a) a constituent fund investing in a globally diversified manner that targets to invest 20% of the net asset value of the fund in higher risk assets, but the investment in those assets may vary from 15% to 25% of the net asset value of the fund at any point in time (Age 65 Plus Fund);(b) a constituent fund investing in a globally diversified manner that targets to invest 60% of the net asset value of the fund in higher risk assets, but the investment in those assets may vary from 55% to 65% of the net asset value of the fund at any point in time (Core Accumulation Fund). 3. Investment strategy for scheme members who are below 50 years of age The approved trustee of a registered scheme must invest the accrued benefits of a scheme member who is below 50 years of age solely in the Core Accumulation Fund. 4. Investment strategy for scheme members who are 50 years of age or above but below 65 years of age (1) Subject to section 34DB(3), this section applies to a scheme member of a registered scheme who is 50 years of age or above, but below 65 years of age.(2) The approved trustee of the scheme must—(a) invest the accrued benefits of the member in the Core Accumulation Fund and the Age 65 Plus Fund;(b) if the member’s accrued benefits have been invested under section 3 of this Schedule but not yet invested under this section—(i) invest, within 60 days beginning on the member’s 50th birthday, a portion of the member’s investments in the Core Accumulation Fund in the Age 65 Plus Fund; and (ii) ensure that immediately after the investment is made, the investments in the respective funds, each relative to the member’s total investments in both funds, are of the percentages set out in columns 2 and 3, opposite to the age of 50 in column 1, of the table in subsection (3) (Table);(c) if the member’s accrued benefits have been invested under this section—(i) allocate, once in each year within 60 days beginning on the birthday of the member in that year, the member’s investments in the Core Accumulation Fund and the Age 65 Plus Fund respectively; and(ii) ensure that immediately after the allocation, the investments in the respective funds, each relative to the member’s total investments in both funds, are of the percentages set out in columns 2 and 3, opposite to the member’s age in column 1, of the Table; and(d) for accrued benefits in the member’s account in a particular year that have not been invested under this section, invest those benefits in the Core Accumulation Fund and the Age 65 Plus Fund according to the proportion expressed in the percentages set out in columns 2 and 3, opposite to the member’s age in column 1, of the Table.(3) The table of percentages for the purposes of subsection (2) is as follows— Column 1 Column 2 Column 3 Age Core Accumulation Fund Age 65 Plus Fund 50 93.3% 6.7% 51 86.7% 13.3% 52 80.0% 20.0% 53 73.3% 26.7% 54 66.7% 33.3% 55 60.0% 40.0% 56 53.3% 46.7% 57 46.7% 53.3% 58 40.0% 60.0% 59 33.3% 66.7% 60 26.7% 73.3% 61 20.0% 80.0% 62 13.3% 86.7% 63 6.7% 93.3% 64 0.0% 100.0% 5. Investment strategy for scheme members who are 65 years of age or above Subject to section 34DB(3), the approved trustee of a registered scheme must invest the accrued benefits of a scheme member who is 65 years of age or above solely in the Age 65 Plus Fund. 6. Investment strategy for scheme members whose age is uncertain The approved trustee of a registered scheme must invest the accrued benefits of a scheme member solely in the Age 65 Plus Fund if the trustee is not aware of the age of the member. Schedule 11 [ss. 34DD & 34DE]Percentage Specified for Purposes of Section 34DD(4) (Schedule 11 added 9 of 2016 s. 11) 1. The percentage for the purposes of section 34DD(4)(a) is a daily rate calculated by the following formula— 0.75% A where— Ais the number of days in the year. 2. Subject to section 3, the percentage for the purposes of section 34DD(4)(b) is 0.2%.(Amended 40 of 2021 s. 47) 3. For a year that begins on or after the material day, the percentage for the purposes of section 34DD(4)(b) is 0.1%.(Added 40 of 2021 s. 47) 4. In this Schedule—DIS constituent fund (預設投資策略成分基金) has the meaning given by section 34DA;inception date (成立日) has the meaning given by section 19T(1);material day (關鍵日)—(a) for a DIS constituent fund that is not a new constituent fund, means the day appointed under section 19ZE(1)(a) for the fund; and(b) for a DIS constituent fund that is a new constituent fund, means the inception date of the fund;new constituent fund (新成分基金) has the meaning given by section 19T(1).(Added 40 of 2021 s. 47) Schedule 12 [ss. 19I & 19ZF]Supplementary Functions of Electronic MPF System (Schedule 12 added 40 of 2021 s. 48) Schedule 13 [ss. 19T, 19W, 19Y, 19ZC & 19ZF & Sch. 16]Fund Expense Ratio (FER) for Relevant Corresponding Period of Constituent Fund (Schedule 13 added 40 of 2021 s. 48) 1. Application This Schedule applies to a constituent fund of a registered scheme and a prescribed period (as defined by section 19Y(3)) relating to the constituent fund. 2. Interpretation In this Schedule—APIF means—(a) an approved pooled investment fund as defined by section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A) (approved fund) the units of which are not divided into classes; or(b) if the units of an approved fund are divided into more than one class (fund class), a fund class of the fund;CIS means a specified CIS (as defined by section 34DD(5)) that is not an APIF;relevant corresponding period (相關相應期間) has the meaning given by section 19Y(3). 3. Determination of FER for relevant corresponding period (1) The FER for the relevant corresponding period of the constituent fund is to be—(a) determined by applying the formula specified in subsection (2); and(b) expressed as a percentage rounded off to 5 decimal places.(2) The formula is— (DE + UFC – RF) × CF D where— DE = the direct expense ratio of the constituent fund (expressed as a percentage); UFC = the underlying fund cost ratio of the constituent fund (expressed as a percentage); RF = the reimbursement ratio of the constituent fund (expressed as a percentage); CF = the conversion factor; D = the total number of days in the relevant corresponding period. (3) In this section—conversion factor (換算因數)—(a) if the financial period of the registered scheme relating to the relevant corresponding period covers 29 February, means 366; and(b) in any other case, means 365;reimbursement ratio (補還比率) means the ratio arrived at by dividing the aggregate of the reimbursement of the fees and expenses to the constituent fund by the average NAV (as defined by section 4(2) of this Schedule). 4. Meaning of direct expense ratio in section 3(2) of this Schedule (1) For the purposes of section 3(2) of this Schedule—direct expense ratio (直接開支比率) means the ratio arrived at by dividing the specified expenses by the average NAV.(2) For the purposes of the definition of direct expense ratio in subsection (1)—average NAV (平均淨資產值) means the sum of the net asset value of the constituent fund at each applicable pricing point divided by the total number of those points;specified expenses (指明開支) means the amount arrived at by—(a) deducting the amount of the excluded expenses that is attributable to the constituent fund for the relevant corresponding period from the amount of the expenses set out in the relevant financial statements of the registered scheme that is attributable to the constituent fund for that period; and(b) adding the amount of the adjusted unit expenses (if any) that is attributable to the constituent fund for the relevant corresponding period.(3) For the purposes of the definition of specified expenses in subsection (2)—adjusted unit expenses (經調整單位開支) means an amount equal to the aggregate of the total value of the units of the constituent fund that are deducted from the accounts of each scheme member for the corresponding period concerned for payment of—(a) annual fees; or(b) fees or charges that would have been treated as expenses if they were directly deducted from the constituent fund;excluded expenses (豁除開支) means the sum of any amount that is set out in the relevant financial statements of the registered scheme as an expense for the corresponding period concerned and that relates to—(a) any transaction costs;(b) any foreign exchange losses;(c) any withholding taxes;(d) any adjustments made for different basis when ascertaining the net asset value of the constituent fund; or(e) any distributions made by the constituent fund. 5. Meaning of underlying fund cost ratio in section 3(2) of this Schedule (1) For the purposes of section 3(2) of this Schedule—underlying fund cost ratio (基礎基金成本比率) means the aggregate of the following—(a) the sum of the product of C and E for each APIF in which any assets of the constituent fund are invested during the relevant corresponding period; and(b) the sum of the product of C and E for each CIS in which any assets of the constituent fund are invested during the relevant corresponding period.(2) For the purposes of the definition of underlying fund cost ratio in subsection (1)—C—(a) in relation to an APIF, means the average percentage of the constituent fund’s investments in the APIF over the relevant corresponding period; and(b) in relation to a CIS, means the average percentage of the constituent fund’s investments in the CIS over the relevant corresponding period;E—(a) in relation to an APIF, means the FER for the most recent financial period of the APIF that ends not later than the last day of the relevant corresponding period; and(b) in relation to a CIS, means—(i) the expense ratio of the CIS that is most recently available; or(ii) if subparagraph (i) is not applicable—a reasonable estimate of the expense ratio of the CIS.(3) For the purposes of subsection (2)—(a) the average percentage of a constituent fund’s investment in an APIF is the percentage obtained by dividing the sum of each specified percentage by the total number of the applicable pricing points; and(b) the average percentage of a constituent fund’s investment in a CIS is the percentage obtained by dividing the sum of each specified percentage by the total number of the applicable pricing points.(4) In subsection (3)—specified percentage (指明百分比)—(a) in relation to an APIF, means the percentage obtained by dividing the value of the investments of the constituent fund in the APIF as at an applicable pricing point by the net asset value of the constituent fund as at that pricing point; and(b) in relation to a CIS, means the percentage obtained by dividing the value of the investments of the constituent fund in the CIS as at an applicable pricing point by the net asset value of the constituent fund as at that pricing point. 6. Meaning of applicable pricing point in sections 4(2) and 5(3) and (4) of this Schedule For the purposes of sections 4(2) and 5(3) and (4) of this Schedule—(a) a pricing point is a point in time at which the net asset value of the constituent fund is determined; and(b) applicable pricing points are pricing points—(i) that are adopted by the approved trustees for the purpose of determining the FER for the relevant corresponding period; and(ii) that are evenly distributed throughout the period at intervals of not more than one month. 7. Determination of FER for financial period of APIF (1) For the purposes of paragraph (a) of the definition of E in section 5(2) of this Schedule, the FER for the most recent financial period of an APIF that ends not later than the last day of the relevant corresponding period is to be determined in accordance with sections 3, 4, 5 and 6 of this Schedule (relevant provisions).(2) In applying the relevant provisions for the purposes mentioned in subsection (1)—(a) subject to paragraph (b), a reference in a relevant provision to a constituent fund is a reference to the APIF (Fund A);(b) subject to paragraphs (c)(i) and (h), a reference in a relevant provision to the corresponding period concerned, the relevant corresponding period, or the relevant corresponding period of the constituent fund, is a reference to the most recent financial period of Fund A that ends not later than the last day of the relevant corresponding period;(c) the expression conversion factor in section 3 of this Schedule—(i) if the most recent financial period of Fund A that ends not later than the last day of the relevant corresponding period covers 29 February, means 366; and(ii) in any other case, means 365;(d) a reference in the definition of specified expenses in section 4(2) of this Schedule to the relevant financial statements of the registered scheme is a reference to the relevant financial statements;(e) a reference in the definition of adjusted unit expenses in section 4(3) of this Schedule to each scheme member is a reference to the constituent fund the assets of which are invested in Fund A;(f) a reference in the definition of excluded expenses in section 4(3) of this Schedule to the relevant financial statements of the registered scheme is a reference to the relevant financial statements;(g) subject to paragraph (h), a reference in section 5 of this Schedule to an APIF is a reference to another APIF (invested APIF);(h) a reference in section 5(2) of this Schedule to the most recent financial period of the APIF that ends not later than the last day of the relevant corresponding period is a reference to the most recent financial period of the invested APIF that ends not later than the last day of the most recent financial period of Fund A; and(i) a reference in section 6(b) of this Schedule to the approved trustee is to be construed as—(i) if Fund A is an insurance policy—the insurer of the insurance policy;(ii) if Fund A is a mutual fund—the management company of the mutual fund; and(iii) if Fund A is a unit trust—the trustee of the unit trust.(3) Subsections (4) and (5) apply to an APIF (Fund B) in which any assets of another APIF (investing APIF) are invested.(4) For the purpose of determining the FER for the most recent financial period of Fund B that ends not later than the last day of the most recent financial period of the investing APIF, subsection (2)(a), (b), (c), (d), (e), (f), (g), (h) and (i) (modification provisions) and the relevant provisions apply as if Fund B were Fund A.(5) In applying the modification provisions for the purpose mentioned in subsection (4)—(a) a reference in subsection (2)(b) to the most recent financial period of Fund A that ends not later than the last day of the relevant corresponding period is a reference to the most recent financial period of Fund B that ends not later than the last day of the most recent financial period of the investing APIF;(b) a reference in subsection (2)(c)(i) to the most recent financial period of Fund A that ends not later than the last day of the relevant corresponding period is a reference to the most recent financial period of Fund B that ends not later than the last day of the most recent financial period of the investing APIF; and(c) a reference in subsection (2)(e) to the constituent fund the assets of which are invested in Fund A is a reference to the investing APIF the assets of which are invested in Fund B. Schedule 14 [ss. 19T, 19X, 19ZB & 19ZF]Reference Rate for Constituent Fund (Schedule 14 added 40 of 2021 s. 48) Part 1 Constituent Fund to which Section 19W(2) Applies 1. Application of Part 1 of this Schedule This Part applies for the purposes of section 19X(2). 2. Relevant rate of administration fee (1) Subject to subsection (2), the relevant rate of administration fee for a constituent fund of a registered scheme to which section 19W(2) applies is the annual rate of the administration fee (or equivalent) of the constituent fund (annual rate)—(a) that is stated, and expressed as a percentage of the net asset value of the constituent fund, in the offering document of the registered scheme;

and(b) that is applicable to the fund as at 31 December 2020.(2) If, in relation to a constituent fund of a registered scheme, the annual rate is expressed in the form of a range of percentage of the net asset value of the constituent fund, the relevant rate of administration fee for the constituent fund is to be the highest rate in the range.(3) The relevant rate of administration fee for a constituent fund of a registered scheme is to be rounded off to 5 decimal places. Part 2 Constituent Fund to which Section 19W(3) Applies 3. Application of Part 2 of this Schedule This Part applies for the purposes of section 19X(3). 4. Relevant rate of administration fee (1) Subject to subsection (2), the relevant rate of administration fee for a constituent fund of a registered scheme to which section 19W(3) applies is the rate calculated in accordance with the following formula— Σ(E) D where— Σ(E) = the sum of the prevailing rate of administration fee for each day in the relevant period; D = the total number of days in the relevant period. (2) If, in relation to a constituent fund of a registered scheme, the prevailing rate of administration fee is expressed in the form of a range of percentage of the net asset value of the constituent fund, the relevant rate of administration fee for the constituent fund is to be the highest rate in the range.(3) The relevant rate of administration fee for a constituent fund of a registered scheme is to be rounded off to 5 decimal places.(4) In this section—prevailing rate of administration fee (現時行政費率), in relation to a constituent fund of a registered scheme, means the annual rate of the administration fee (or equivalent) of the constituent fund—(a) that is stated, and expressed as a percentage of the net asset value of the constituent fund, in the offering document of the registered scheme; and(b) that is applicable to the fund on a particular day;relevant period (相關期間), in relation to a constituent fund of a registered scheme to which section 19W(3) applies, means the corresponding period of the constituent fund mentioned in that section. Schedule 15 [ss. 19T, 19Z & 19ZF]Permitted Percentage (Schedule 15 added 40 of 2021 s. 48) 1. This Schedule applies for the purposes of section 19Z. 2. Subject to sections 3 and 4 of this Schedule, the percentage permitted for the relevant corresponding period is the ratio calculated in accordance with Formula 1— Formula 1 A – (B – C) where— A = the reference ratio for the constituent fund; B = the reference rate for the constituent fund; C = the average level of the fee payable by the approved trustee of the registered scheme to the system operator of the electronic MPF system for the relevant corresponding period, which is calculated in accordance with Formula 2 and expressed as a percentage rounded off to 5 decimal places— Formula 2 Σ(E) D where— Σ(E) = the sum of each E; E = the annual rate of the fee (expressed as a percentage of the net asset value of the constituent fund) charged by the system operator of the electronic MPF system, in relation to the use of the electronic MPF system and provision of scheme administration services, that is applicable to the constituent fund on a particular day in the relevant corresponding period of the fund; D = the total number of days in the relevant corresponding period of the constituent fund. 3. The ratio calculated under section 2 of this Schedule is to be expressed as a percentage rounded off to 5 decimal places. 4. If, in relation to a constituent fund of a registered scheme, B is less than or equal to C, the percentage permitted for the relevant corresponding period is A. 5. In this Schedule—relevant corresponding period (相關相應期間) has the meaning given by section 19Z(4). Schedule 16 [ss. 19T, 19Z, 19ZA & 19ZF]Calculation of Amount for Purposes of Section 19ZA(2) (Schedule 16 added 40 of 2021 s. 48) 1. For the purposes of section 19ZA(2), the amount is to be calculated in accordance with the following formula— (X – Y) × Z × D A where— X = the FER for the relevant corresponding period; Y = the permitted percentage (as defined by section 19Z(4)) for the relevant corresponding period; Z = the average NAV (as defined by section 4(2) of Schedule 13) for the relevant corresponding period; D = the total number of days in the relevant corresponding period; A = (a) if the financial period of the registered scheme relating to the relevant corresponding period covers 29 February—366; and (b) in any other case—365. 2. In this Schedule—relevant corresponding period (相關相應期間) has the meaning given by section 19Z(4). Schedule 17 [ss. 19M, 48 & 50]Transitional Provisions for 2021 Amendment Ordinance (Schedule 17 added 40 of 2021 s. 48) 1. Interpretation In this Schedule—effective day (規定生效日), in relation to a pre-existing scheme, means the day specified under section 19N(1) for the scheme;General Regulation (《一般規例》) means the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg. A);relevant requirement (相關規定) has the meaning given by section 19O(2). 2. Transitional arrangements relating to approved trustee’s duties with regard to contributions received from Authority—section 7AD (1) Despite the commencement of section 14 of the 2021 Amendment Ordinance (amendment provision), section 7AD as in force immediately before the commencement date (pre-amended section 7AD) applies to the approved trustee of a pre-existing scheme in relation to a contribution paid under section 7AC to the trustee if—(a) there is no section 19N notice in respect of the scheme; or(b) there is a section 19N notice in respect of the scheme, and the contribution was paid before the effective day.(2) Despite the commencement of section 102(2) of the 2021 Amendment Ordinance, items 1C and 1D of Schedule 4 to the General Regulation as in force immediately before the commencement date apply to the approved trustee of the pre-existing scheme, to the extent that the pre-amended section 7AD applies to the approved trustee because of subsection (1).(3) In this section—*commencement date (生效日期) means the date on which the amendment provision comes into operation. Editorial Note: * Commencement date: 26 June 2024. 3. Transitional arrangement relating to recovery of arrears and contribution surcharges—section 18 (1) Despite the commencement of section 15(2) of the 2021 Amendment Ordinance (amendment provision), section 18(6) as in force immediately before the commencement date applies to the approved trustee of a pre-existing scheme in relation to a payment made under section 18(5) to the trustee if—(a) there is no section 19N notice in respect of the scheme; or(b) there is a section 19N notice in respect of the scheme, and the payment was made before the effective day.(2) In this section—*commencement date (生效日期) means the date on which the amendment provision comes into operation. Editorial Note: * Commencement date: 26 June 2024. 4. Transitional arrangements relating to Authority’s power to pay special contributions into accounts of scheme members—section 19B (1) Despite the commencement of section 16 of the 2021 Amendment Ordinance (amendment provision), section 19B as in force immediately before the commencement date (pre-amended section 19B) applies to the payment of a special contribution by the Authority to the approved trustee of a pre-existing scheme if—(a) there is no section 19N notice in respect of the scheme; or(b) there is a section 19N notice in respect of the scheme, and the payment was made by the Authority before the effective day.(2) Despite the commencement of section 102(4) of the 2021 Amendment Ordinance, item 2C of Schedule 4 to the General Regulation as in force immediately before the commencement date applies to the approved trustee of the pre-existing scheme, to the extent that the pre-amended section 19B applies to the approved trustee because of subsection (1).(3) In this section—*commencement date (生效日期) means the date on which the amendment provision comes into operation. Editorial Note: * Commencement date: 26 June 2024. 5. Transitional arrangement relating to Authority’s power to require information or documents necessary for paying special contributions—section 19C (1) Despite the commencement of section 17 of the 2021 Amendment Ordinance (amendment provision), section 19C as in force immediately before the commencement date (pre-amended section 19C) applies to a pre-existing scheme in relation to the payment of a contribution (referred to as a special contribution in Part 3A) by the Authority if—(a) there is no section 19N notice in respect of the scheme; or(b) there is a section 19N notice in respect of the scheme and—(i) the relevant requirement has not taken effect; or(ii) the requirement under subsection (1)(a) of the pre-amended section 19C was made, in relation to the scheme, before the effective day.(2) In this section—*commencement date (生效日期) means the date on which the amendment provision comes into operation. Editorial Note: * Commencement date: 26 June 2024. 6. Transitional arrangements relating to Authority’s power to recover special contributions that should not have been paid—section 19E (1) Despite the commencement of section 18 of the 2021 Amendment Ordinance (amendment provision), section 19E as in force immediately before the commencement date (pre-amended section 19E) applies to a pre-existing scheme in relation to a contribution (referred to as a special contribution in Part 3A) if—(a) there is no section 19N notice in respect of the scheme; or(b) there is a section 19N notice in respect of the scheme, and the special contribution has been paid into the account of a member of the scheme before the effective day.(2) Despite the commencement of section 102(4) of the 2021 Amendment Ordinance, item 2G of Schedule 4 to the General Regulation as in force immediately before the commencement date applies to the approved trustee of the pre-existing scheme, to the extent that the pre-amended section 19E applies to the approved trustee because of subsection (1).(3) In this section—*commencement date (生效日期) means the date on which the amendment provision comes into operation. Editorial Note: * Commencement date: 26 June 2024. 7. Transitional arrangements relating to transfer of accrued benefits to account within same registered scheme—section 34DC (1) Despite the commencement of section 25 of the 2021 Amendment Ordinance (amendment provision), section 34DC as in force immediately before the commencement date (pre-amended section 34DC) applies to the approved trustee of a pre-existing scheme unless—(a) there is a section 19N notice in respect of the scheme; and(b) the relevant requirement has taken effect.(2) Despite the commencement of section 102(6) of the 2021 Amendment Ordinance, item 4G of Schedule 4 to the General Regulation as in force immediately before the commencement date applies to the approved trustee of the pre-existing scheme, to the extent that the pre-amended section 34DC applies to the approved trustee because of subsection (1).(3) Because of subsection (1), sections 20B, 30 and 33 as in force immediately before the commencement date applies to the pre-existing scheme, in so far as they relate to the pre-amended section 34DC.(4) In this section—*commencement date (生效日期) means the date on which the amendment provision comes into operation. Editorial Note: * Commencement date: 26 June 2024. 8. Transitional arrangement relating to payment from Authority under section 43BA(6) (1) Despite the commencement of section 40 of the 2021 Amendment Ordinance (amendment provision), section 43BA(7) and (8) as in force immediately before the commencement date applies to the approved trustee of a pre-existing scheme in relation to a contribution or surcharge paid under section 43BA(6) if—(a) there is no section 19N notice in respect of the scheme; or(b) there is a section 19N notice in respect of the scheme, and the contribution or surcharge was paid before the effective day.(2) In this section—*commencement date (生效日期) means the date on which the amendment provision comes into operation. Editorial Note: * Commencement date: 26 June 2024.