Common offences committed by MPF intermediaries (MPFI) include:
• impersonating scheme members to obtain their information from MPF trustees
• forging clients’ signatures and making unauthorized transfer of clients’ MPF
• providing inaccurate information to clients and using marketing materials which have not been approved by their principal intermediaries
• asking clients to sign on incomplete forms and failing to keep a record of clients’ instructions, etc.
According to the MPFSO, if an MPFI fails to comply with any performance requirements when carrying on a regulated activity, MPFA may impose disciplinary orders against the MPFI, including:
• suspension or revocation of registration
• disqualification from registration
• public or private reprimand
• pecuniary penalty (a maximum fine of $10 million or three times the profit gained as a result of the failure, whichever is higher)
All individuals are required to register with MPFA as MPFIs before they can engage in MPF sales and marketing activities with prospective/existing scheme members. It is a criminal offence under the MPFSO to carry on or hold out as carrying on regulated activities without registration with MPFA. Offenders are liable to a maximum fine of $5 million and imprisonment for seven years.