Enforcement

Enforcement Statistics

The following are relevant statistics on the enforcement actions taken and handling of complaints involving MPF trustees and service providers by MPFA for the period from 1 April 2024 to 31 March 2025.

Complaints involving MPF trustees and service providers

  • Total number of complaint cases involving
    MPF trustees and service providers: 435

*Since a complaint may cover more than one subject matter, the total number of subject matters of complaints may exceed the total number of complaints.

 


Enforcement actions involving MPF trustees

The MPFA imposed financial penalties on MPF trustees relating to non-compliances with scheme administration duties under the MPF legislation.

 

  • Financial penalty notices issued: 9
  • MPF trustees penalized: 5
  • Total amount of financial penalties: $2,490,0001

1 All penalties had been settled by the trustees.


 

Nature of scheme administration duties
No. of financial penalty notices issued
Processing of MPF transfer / payment
                                        4
MPF scheme membership administration
                                        1
Provision of information to MPF scheme members
                                        1
Statutory reporting to MPFA
                                         3

Enforcement actions involving MPF intermediaries

Misconduct
Action taken
Offering incentives to others for the purpose of encouraging clients to participate in/make MPF contributions to/transfer MPF benefits to certain MPF scheme and failing to have adequate internal controls and procedures for securing compliance
Disciplinary action of public reprimand and fining a Principal Intermediary of HK$24 million
Failing to identify the risks of not complying with the relevant conduct requirements by a Principal Intermediary
Disciplinary action of public reprimand and disqualifying two former Responsible Officers of a Principal Intermediary from approval as a responsible officer for 18 and 30 months respectively
Effecting three transfers of MPF benefits of two scheme members from their original MPF schemes to another scheme without their authorization and knowledge

Disciplinary action of public reprimand and disqualifying a former Subsidiary Intermediary from registration for 5 years
Failing to promptly carry out a scheme member’s instruction to transfer MPF benefits from an MPF scheme to another scheme, misusing the personal information and forging the signatures of the scheme member in relation to the transfer
Disciplinary action of public reprimand and disqualifying a former Subsidiary Intermediary from registration for 46 months
Impersonating a scheme member in calling two MPF trustees respectively to obtain the scheme member’s account information and failing to promptly carry out the scheme member’s instruction to transfer MPF benefits from an MPF scheme to another scheme
Disciplinary action of public reprimand and disqualifying a former Subsidiary Intermediary from registration for 12 months
Failing to seek approval of marketing materials from Principal Intermediary before distribution to scheme members
Disciplinary action of public reprimand and disqualifying a former Subsidiary Intermediary from registration for 2 months
Failing to carry out clients’ instructions promptly and accurately; failing to disclose necessary information to the clients; failing to treat information supplied by the clients as confidential; and principal intermediaries’ failures to put in place proper controls and procedures for securing compliance; and failures to supervise adequately and monitor its subsidiary intermediaries’ compliance with internal guidelines for conducting regulated activities etc.
Advisory letters to 3 Subsidiary Intermediaries and 3 Principal Intermediaries to remind compliance with the relevant conduct requirements

Enforcement actions involving employers and scheme members
Criminal actions:
  • 323 summonses were applied against non-compliant employers and directors/managers of limited companies
  • 15 summonses were applied against MPF scheme members 
     
Civil actions:
  • 1,728 claims were filed to civil courts to pursue default contributions*
  • 238 proof of debt were filed with liquidators or Official Receiver to recover default contributions*
  • 103 Garnishee Orders were granted by court to seize money from defaulting employers’ bank accounts
  • 93 Bailiff actions were taken to seize assets of defaulting employers
  • 1 court order was granted by court to compel convicted employer to rectify the non-compliance
  • 125 financial penalty notices were issued to repeat defaulters
Total amount of default contributions recovered:
  • $191 million of default contributions* were recovered for employees

*Default contributions include surcharge calculated at 5% of the amount of MPF contributions in arrears imposed on employers who failed to make MPF contributions for their employees within the prescribed period.