
MPF System
Background
MPF Trustees
MPF Custodians
MPF assets are held by qualified custodians (e.g. authorized financial institutions) and kept separately from the assets of employers, MPF trustees and other related service providers.
MPFA
- capital adequacy
- sufficient presence and control in Hong Kong
- the capability to carry on the business of administering MPF schemes
- the fitness and propriety of the controllers
- the skill, knowledge, experience and qualification of directors and the chief executive officer
- internal control standards
- capital adequacy
- professional knowledge
- company resource adequacy
- internal controls and risk management
• on-site inspections of trustees and regular reviews
• monitoring compliance of trustees
• issuing codes and guidelines
Under the MPFSO, MPF trustees are required to take out adequate professional indemnity insurance to provide compensation for scheme members’ losses that are attributable to misfeasance or illegal conduct committed by MPF trustees and other persons concerned with the administration of the MPF schemes.
Under the MPFSO, MPFA has established a Compensation Fund.
If a trustee’s professional indemnity insurance is inadequate to provide compensation for scheme members’ losses, scheme members can seek compensation from MPFA’s Compensation Fund.