Supervision

MPF Trustees

On-site inspections and off-site monitoring

MPFA supervises MPF approved trustees by way of both on-site inspections and off-site monitoring. The scope of supervision is determined in part by the risk profile of each MPF approved trustee.

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MPFA conducts regular on-site inspections to approved trustees, which is one of the measures for ensuring their compliance with statutory and regulatory requirements. In addition, MPFA carries out thematic reviews on approved trustees to check on specific areas of their operations. Approved trustees are required to rectify any internal control weaknesses and non-compliance issues identified during these inspections.

Review of returns from approved trustees

A sample framework of an MPF scheme

Regulatory measures to supervise trustees and their service providers

MPFA has developed regulatory measures to supervise trustees, with a view to assisting them to develop good corporate governance, proper risk management and a strong compliance culture within their organizations.

MPFA issues various codes and guidelines to ensure that trustees comply with statutory requirements and to help trustees supervise the work of their appointed service providers.

Service providers are responsible for duties such as scheme administration, record keeping, formulation of investment strategies and decisions, and custody of scheme assets, respectively.

Complaints against trustees

Handling complaints is an important way for MPFA to monitor the performance of trustees. It effectively identifies problems associated with the operations of trustees and the MPF System.

MPFA will identify issues from complaints against trustees lodged by the public and take follow-up actions.

Liaison with trustees

MPFA meets regularly with trustees to exchange views on various issues, including MPF administration and operational matters, and initiatives to enhance the MPF System. Meetings between MPFA and trustees are held through the following channels:

The Trustees Operation Liaison Group – meetings are held with representatives from trustees and MPFA regularly to discuss operational issues of MPF schemes that are of common interest across the industry;
Sharing Sessions – sharing sessions are held with representatives from trustees and investment managers to discuss issues relating to fund governance and investment compliance; and
Working Groups – working group meetings are held as needed with industry representatives to discuss specific issues.