Complaint handling against Trustees
The MPFA handles complaints against Trustees by scheme participants and takes follow-up actions on issues identified. Complaint handling has been, and will continue to be, an important avenue for monitoring Trustees’ performance. It is an effective way to identify problems associated with the operations of Trustees and the MPF System.
You may find more information about “Complaints Against MPF Trustees” here
Enforcement actions against Trustees
The MPF legislation confers on the MPFA the power to investigate and take enforcement actions against Trustees. Different non-compliance issues merit different enforcement actions under the MPF legislation. Depending on the seriousness of the non-compliance issues, the MPFA will take appropriate enforcement actions against Trustees. These actions may include:
- issuance of warning/reminder letters;
- imposition of financial penalty;
- criminal prosecution;
- tightening the approval conditions of the Trustees concerned;
- suspension or revocation of the approval of the Trustees; and
- suspension and termination of Trustee’s administration of a registered scheme.
If trustees have failed to comply with the MPF legislation, depending on the nature of the failure, they may receive a warning from MPFA or be imposed with financial penalties, and be ordered to take immediate remedial action.
In case of serious breaches, MPFA can take other actions against non-compliant trustees in accordance with the MPF legislation. For example, in a case where MPFA reasonably suspects that the trustee is unable to carry out any of its duties as an approved trustee, MPFA may suspend the trustee from administration of the MPF scheme and appoint an administrator to administer the scheme on a temporary basis. If MPFA is satisfied on reasonable grounds that the trustee of a scheme is unable to carry out any of its duties as an approved trustee, MPFA may revoke the approval of the trustee. Prosecution action may also be taken against non-compliant trustees.