Enforcement

Enforcement Statistics

The following are some statistics on the enforcement actions taken by MPFA for the period from 1 April 2019 to 31 March 2020.

Enforcement actions involving MPF trustees

  • Total number of complaint cases MPF trustees: 246

*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.

 

 

The MPFA imposed financial penalties on trustees for their failures to timely auto-preserve members’ accrued benefits, pay accrued benefits to member and report cases of non-payment of contribution surcharges to the MPFA.

  • Financial penalty notices issued: 4
  • MPF trustees penalized: 3
  • Total amount of penalties:$ 1,520,000
 

Enforcement actions involving MPF intermediaries

Non-compliance
Disciplinary Action
Deviating from the standard set out in the Conduct Guidelines for identifying risk mismatch cases and failing to provide audit trail for its conversation with client in those cases
 
Fined a Principal Intermediary $500,000
Transferring a scheme member’s MPF benefits without authorization

Disclosing a scheme member’s personal information to a third party for impersonating the member and obtaining the member’s account information from an MPF trustee
 
Disqualified a former Subsidiary Intermediary from registration for 10 months
Asking clients to sign on incomplete forms, failing to keep record of clients’ instructions and to comply with Principal Intermediary’s procedures of conduct, etc.
Issued advisory letters to seven Subsidiary Intermediaries and one Principal Intermediary

Enforcement actions involving employers and scheme members

Criminal Actions:
  • 587 summonses were applied against non-compliant employers and directors/managers of limited companies
  • 80 summonses were applied against scheme members
Civil Actions:
  • 794 claims were filed to civil courts to pursue default contribution
  • 123 garnishee orders were granted to seize moneys from defaulting employers’ bank accounts
  • 63 bailiff actions were imposed to seize assets from defaulting employers
  • Seven court orders were granted by court to compel convicted employers to rectify the non-compliance
  • 134 financial penalty notices were issued to repeat defaulters
 
Total amount of default contribution recovered:
  • $157.8 million of default contributions were recovered on behalf of employees