Information Centre

FAQ

MPF System

Enforcement

MPF Employers, Scheme Members and Self-Employed Persons

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1. Will the MPF trustee report to MPFA if the employer does not make contributions?
If the employer does not pay the mandatory contributions, the MPF trustee is required to report the default to MPFA (not applicable to Casual Employees). Upon receiving the MPF trustee's report, MPFA will take enforcement actions to recover the default contributions for the affected employee.
2. What happens if the employer fails to settle the payment of contributions?

If the employer fails to pay the mandatory contributions on time, MPF trustee is required to report the default to MPFA. Based on the report, MPFA will issue the “Payment Notice for MPF Contributions and Surcharge” to recover the default contributions and a surcharge, calculated at 5% of the default amount. If the employer fails to rectify the default contributions, MPFA may impose a financial penalty on the employer or initiate legal proceedings to recover the default contributions and surcharge on behalf of the affected employee.

3. What should the employee do if the employer fails to pay MPF contributions for him/her?

Employee should first clarify with the employer or MPF trustee to see if it is a genuine default contribution. If default contribution is confirmed, the employee should lodge a complaint with MPFA as soon as possible. For more information, please refer to the “Complaints against Employers” .

4. How can the employee recovers contributions in arrears when the employer has become liquidated or bankrupt?

If the employer has become liquidated or bankrupted, the employee may lodge a complaint with MPFA and provide relevant information. MPFA will file claims with the Insolvency Officer or liquidator to recover the default contributions on behalf of the employee. If any payments are received from the liquidator, MPFA will pay the amount to the MPF trustee for allocation to the relevant employees' MPF accounts. 


5. What happens to the contributions in employees’ MPF accounts if the employer's business is being wound up?
Mandatory contributions paid into employee’s MPF account will be fully vested to the employee. Even if the employer closes the business, all contributions vested to the employees’ MPF accounts cannot be withdrawn by employer.
6. Why can’t MPFA recover voluntary contributions in arrears on behalf of scheme members?

Voluntary contributions are voluntary arrangement between the employer and employee, not employers’ obligations under MPFSO. Therefore, the statutory functions of MPFA do not cover the recovery of voluntary contributions in arrears on behalf of scheme members. 

7. What should the self-employed person do if he/she is no longer self-employed but still receives the “Notice for Outstanding MPF Contributions” from MPFA?

If a person is no longer self-employed, he/she should notify the MPF trustee as soon as possible to cease the self-employed person’s account and check whether there are outstanding contributions and surcharges.  If so, the default contributions and surcharge must be settled immediately.  

8. What should the scheme member do if he/she received an unsolicited call to abet him/her in making a false statutory declaration for the early withdrawal on the ground of permanent departure from Hong Kong?

Scheme members should not be instigated by crime syndicates to make false declarations. Making false declaration is a criminal offence, and will be sentenced to imprisonment or fine. Be vigilant against unsolicited calls and do not disclose any personal information to any unknown third party. 

 

Please click here for more information.

ORSO Employers and Administrators

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1. What are the new enforcement powers provided to the Registrar after the ORSO was amended and came into operation on 26 June 2020?

The enforcement powers under sections 66C and 66D of the amended ORSO allow the Registrar to: 

 

  • investigate into suspected non-compliance with statutory requirements
  • require any person to provide information and assistance
  • require any person to attend an interview and answer questions

 

If there is any substantiated non-compliance, the Registrar would take appropriate enforcement actions.

 
2. What is the consequence if a person fails to comply with the Registrar’s investigation requirements?

According to section 66E of the amended ORSO, a person commits an offence if the person fails to comply with investigation requirements without reasonable excuse (or with intent to defraud). 

 

The maximum penalties are : 

  1. a fine at level 6 and imprisonment for six months on summary conviction; or
  2. a fine of $1,000,000 and imprisonment for seven years on conviction on indictment.
 

MPF Trustee

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1. What are the roles of the MPFA on handling complaints related to MPF trustees?

We attach great importance to complaints lodged by the public and take this opportunity to regulate MPF trustees’ conduct and their compliance.


However, please note that the MPFA cannot interfere with MPF trustees’ commercial decisions, adjudicate on disputes between MPF trustees and scheme members/participating employers or order compensations from MPF trustees. 

2. What will the MPFA do upon receipt of complaint from the complainant and what are the follow-up actions?

The MPFA will conduct an initial assessment of all the materials provided by the complainant. If the complaint falls within the MPFA’s jurisdiction, having considered the nature and the content of the complaint, the MPFA will handle the complaint according to the established procedures, including making initial contact with the complainant by phone or in writing within seven working days from the date of receiving the complaint, reviewing the information obtained and making contact with all related parties (including the complainant and the related MPF trustee) in order to follow up the complaint. We will notify the complainant of the outcome upon completion of the case. 


If the complaint relates to statutory requirements, we will follow up with the MPF trustees on whether they have acted in accordance with the relevant requirements.

3. What can the complainant do if the complainant want to demand monetary compensation from the MPF trustee?
The MPFA cannot interfere with MPF trustees’ commercial decisions, adjudicate on disputes between MPF trustees and scheme members/participating employers or order compensations from MPF trustees. Where necessary, the complainant may seek professional advice. 
4. A scheme member believes that the performances of the MPF constituent funds provided by the MPF trustees are not satisfactory. Would the MPFA do something about it/interfere with it?

The performances of MPF funds and the fund prices are determined by the market which is beyond the control of the MPFA.


Nevertheless, the MPFA has been driving competition in the industry through various means, such as launching the fee capped “Default Investment Strategy” and the “MPF Fund Platform”, with an aim to enhancing the performance of MPF trustees and MPF constituent funds for the benefits of scheme members.

5. Has the MPFA set out any performance pledges in respect of the completion time for follow-up actions on the complaint cases related to MPF trustees?
The MPFA has not set out any performance pledges in respect of the completion time for follow-up actions in handling complaint cases as the content and degree of complexity of each case varies. The MPFA endeavours to handle complaint expeditiously as far as practicable. In general, the MPFA will update the complainant on the progress of the follow-up actions by phone or in writing at least once every two months.
6. If the MPFA found that a MPF trustee had made mistakes during the course of processing a complaint case, what will the MPFA do?
If the MPFA suspects that a MPF trustee has not complied with the statutory requirements during the course of processing a complaint case, it will investigate the case in accordance with the established procedures and will take appropriate enforcement actions as and when necessary.
7. Can a scheme member choose not to make his MPF fund choice in enrolment? How will a MPF trustee invest for a scheme member who does not make any fund choice?

We encourage all scheme members to make their own MPF fund choices according to their investment objectives and risk tolerance levels.

 

If a scheme member does not provide the MPF trustee with his fund choices, the contributions of a scheme member will be invested according to the Default Investment Strategy (DIS). DIS is an investment strategy which balances the risks and returns considering the need of average MPF scheme members. All MPF schemes are required by law to offer the DIS.

For more information, you may refer to the following link

8. Will a MPF trustee inform scheme member of his fund portfolio made with regard to his MPF contributions after enrolment?

MPF trustee will provide a scheme member with a notice of participation (Notice) to confirm his enrolment. The Notice should list out, among others, the name of the MPF scheme, the name and address of the MPF trustee, scheme member’s name and the issuance date of the Notice.


Furthermore, an MPF trustee is also required to provide a scheme member with an annual benefit statement stating the MPF account details, such as fund portfolio and account balances at the end of each financial period of the scheme.

9. Are there any parties involved in managing a scheme member’s MPF account other than MPF trustee? If yes, are they also bound by the relevant MPF legislation?

MPF trustee would appoint service providers to offer services for the purposes of the scheme. Unless an MPF trustee can meet the criteria for acting as a custodian, it has to appoint a custodian to take care of MPF scheme assets and also engage an independent investment manager to manage the investment of the funds under MPF scheme.


MPF trustee may also engage scheme administrators to act on its behalf to handle the daily administration work of MPF schemes.


Under section 43(f) of Mandatory Provident Fund Schemes (General) Regulation, MPF trustees have the duty to supervise and exercise proper control over all service providers appointed or engaged for the purposes of the schemes.

10. Can a scheme member transfer his accrued benefits in his contribution account to another MPF scheme? How long a MPF trustee will take to process the transfer request?

Under Employee Choice Arrangement (ECA), a scheme member is allowed to transfer his accrued benefits derived from the employee’s mandatory contributions in his contribution account to another MPF scheme of his choice. The ECA transfer can only be made once in every calendar year and it takes around 30 days for a MPF trustee to process the ECA transfer request.

 

Please note that the accrued benefits derived from employer’s mandatory contributions in the contribution account are not transferrable under the ECA arrangement.

 

For more information, you may refer to the following link

11. Does a scheme member require to make any arrangement for managing his MPF funds under his existing MPF account if he has ceased an employment?

Unless the member is self-employed, the former employer of the scheme member is required to notify the MPF trustee of his existing MPF scheme the cessation of the employment. Upon the notification, the MPF trustee is required to inform the scheme member the options for transferring his accrued benefits under the existing MPF scheme. In general, the scheme member can choose to:


(i)    transfer his accrued benefits to a contribution account under the MPF scheme of his new employer;
(ii)   retain his accrued benefits in a personal account under the original MPF scheme; or
(iii)  transfer his accrued benefits to his existing personal account under another MPF scheme if he has any.

12. How can a scheme member transfer his accrued benefits in his personal account to an MPF scheme of another MPF trustee? How long a MPF trustee will take to process the transfer request?

Scheme member should complete the form “Scheme Member’s Request for Fund Transfer Form” (Form MPF(S)-P(M)) and submit it to the new MPF trustee for process. The form can be downloaded from the MPFA website or obtained from their new MPF trustee.


The original MPF trustee will, within 30 days after being notified of the scheme member’s transfer option, arrange the transfer of the accrued benefits to the new MPF trustee of their choice. Once the transfer is completed, the new MPF trustee will send scheme member a Transfer Confirmation stating, among others, the amount of accrued benefits transferred to the personal account under the new MPF scheme.

MPF intermediaries

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1. Has MPFA made any performance pledges for the time taken to complete follow-up actions when handling complaints about intermediaries?
As the content of each case varies, MPFA has not made any performance pledges for the time taken to complete follow-up actions. In general, MPFA will update the complainant on the progress of follow-up actions by telephone or in writing at least once every two months.
2. After receiving complaint from the complainant, how will MPFA handle it and follow up?

MPFA will make an initial assessment of all the information provided by the complainant. If the complaint involves MPF sales and marketing activities, it will be handled according to established procedures and MPFA will contact the complainant within seven working days after the complaint to request for case information, etc.

 

If the information reveals that the relevant intermediaries may be in breach of conduct requirements, MPFA will refer the case to the relevant frontline regulators (FRs), who will consider whether it is necessary to initiate investigation against the relevant intermediaries. After the FRs completes the investigation, MPFA will consider the information obtained by FRs (including the representation made by the intermediaries) and decide on the appropriate actions, such as a disciplinary order.

3. What is the role of MPFA in handling complaints related to intermediaries?

MPFA attaches great importance to complaints and regulates the conduct and compliance of intermediaries to protect the rights of scheme members or employers.


However, MPFA cannot interfere with the commercial decisions of the intermediaries, intervene in matters relating purely to service quality and are unrelated to MPF sales and marketing activities, or order intermediaries to pay compensations for disputes between intermediaries and scheme members.

4. How do scheme members file complaints about the marketing activities of MPF intermediaries?

If a scheme member believes that an MPF intermediary has not complied with the conduct requirements, or suspects an unregistered intermediary is conducting unregistered sales or marketing activities, the member can file a complaint with MPFA by mail, telephone, fax, email, or in person.

 

Post: Member Protection and Services Division, MPFA, Level 12, Tower 1, The Millennity, 98 How Ming Street, Kwun Tong, Hong Kong

Hotline: 2918 0102

Fax: 2259 8806

Email: mpfa@mpfa.org.hk

If members of the public need to visit the MPFA office in person (e.g. for submitting documents), please call our hotline (2918 0102) to make an appointment in advance.

5. If after an investigation, MPFA confirms that an intermediary has conducted sales and marketing activities illegally, what disciplinary actions will MPFA take? Will MPFA require the intermediary to compensate their clients?
If an intermediary has violated conduct requirements, MPFA can take disciplinary actions, 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.

MPFA does not have statutory power to request an intermediary compensate a scheme member for MPF investment loss.

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