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Enforcement

Regulatory Regime and Powers

In the multi-regulator framework and statutory regime under the Mandatory Provident Fund Schemes Ordinance (MPFSO) which commenced on 1 November 2012, the MPFA works with three frontline regulators (FRs), namely the Insurance Authority (IA), the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA). The MPFA and the FRs have distinct powers and functions. In cases concerning conduct issues, the FRs are responsible for supervision and investigation of the relevant registered MPF intermediaries (MPFIs) who are the FRs’ respective regulatees under their own regimes while the MPFA is the sole authority to determine and impose any disciplinary orders under the MPFSO.


MPF Intermediaries and Regulated Activity

There are two types of MPFIs, principal intermediaries (PIs) and subsidiary intermediaries (SIs). PIs are business entities registered with the MPFA for carrying on regulated activities. SIs are persons attached to a PI for carrying on regulated activity on behalf of the PI.


You may find more information about "MPF Intermediaries and Regulated Activities" here.


Performance Requirements

The Guidelines on Conduct Requirements for Registered Intermediaries, issued under the MPFSO, provides guidance in respect of the minimum standards of conduct expected of regulated persons who engage in conducting sales and marketing activities and giving advice in relation to registered schemes.

In particular, it provides guidance about the circumstances in which MPFA will be satisfied that a regulated person has, or has not, complied with a performance requirement under sections 34ZL and 34ZM of the MPFSO for the purposes of section 34ZW of the MPFSO.


If an MPFI has failed to comply with any performance requirement when carrying on a regulated activity under the MPFSO, the MPFA may take disciplinary action against the MPFI. Disciplinary sanctions set out under the MPFSO include:

  • Revocation of registration;
  • Disqualification from registration;
  • Suspension of registration;
  • Reprimand (public or private);
  • Pecuniary penalty (whichever is the higher of $10 million or three times the profit gained as a result of the failure).

Unregistered selling

A person is required to be registered with the MPFA as an MPFI before he/she can engage in MPF sales and marketing activities, i.e. regulated activities, with a prospective/existing scheme member. It is a criminal offence under the MPFSO to carry on or hold out as carrying on regulated activities without registration with the MPFA and subject to a maximum fine of $5 million and imprisonment for 7 years.


Last Revision Date: 30/10/2019