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ORSO Trustee

1
If an ORSO registered scheme is terminated during a financial year, is the trustee required to submit the audited financial statements and auditor’s report to MPFA?
If an ORSO registered scheme is terminated during a financial year, the trustee is required to provide the audited financial statements and auditor’s report in order to report the scheme’s position up to the later of the following:
(a) the effective date of termination of the scheme as notified to MPFA using the “Notice of termination / winding up of a registered scheme” form; or
(b) the date on which all the benefits under the scheme have been paid to members or (if applicable) the assets of the scheme have been transferred to another scheme.
2
If a member was dismissed for reasons of misconduct, can the trustee forfeit all the ORSO benefits of the member, including the minimum MPF benefits (“MMB”)?

According to section 4(e) & (f) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation ("the Exemption Regulation"), a new member’s MMB are not forfeited upon dismissal from employment, regardless of whether dismissal is on the grounds of misconduct, fraud or dishonesty, and may not be used in the settlement of any losses suffered by the employer or any debts owed to the employer.

For existing members, section 2(3) of Schedule 2 of the Exemption Regulation includes a requirement that, upon dismissal for cause, the trustee cannot withhold the employer’s funded portion of the existing member’s accrued benefits up to an amount equivalent to MMB.

Finally, the forfeiture clause in the scheme rules should also be considered.

3
Is there any requirement to report a change in the investment manager of an MPF exempted ORSO registered scheme?
The trustee should send a written notice to MPFA about the details of the change, such as the name of the new investment manager, the date of the appointment, and the registration number with the Securities and Futures Commission or an overseas regulatory authority recognized by MPFA when submitting the next annual return.
4
Which overseas regulatory authorities are recognized by MPFA for the appointment of investment managers of MPF exempted ORSO schemes?
Please refer to V.12 Guidelines on MPF Exempted ORSO Schemes – Investment Managers for the list of regulatory authorities recognized by MPFA.

Last Revision Date: 31/10/2012