Approval of trustees
- exercise a reasonable level of care, skill, diligence and prudence;
- make use of all relevant knowledge and skill that the trustee may be reasonably expected to have to administer and maintain the scheme;
- ensure the assets of the scheme are invested in different investments so as to minimize the risk of losses of those assets;
- act in the interest of scheme members and not in the trustee’s own interest;
- act in accordance with the governing rules of the scheme; and
- supervise and exercise proper control over all service providers appointed or engaged for the purposes of the scheme.
Approval of corporate applicants
Requirements for approval of corporate applicants as trustees include:
- capital adequacy;
- financial soundness;
- fitness and propriety of each controller;
- adequate mix and competency of the board of directors (including an independent director) and the chief executive officer; and
- adequate insurance, sound governance and internal control measures.
MPFA should be satisfied that the applicant has sufficient expertise and management resources to conduct its operations effectively. Each application for approval as a trustee is examined in detail by MPFA to ensure that all approval requirements are satisfied.
Registration and approval of MPF schemes and funds
All MPF schemes must be registered with MPFA.
Upon receipt of the application for registration of MPF schemes and approval of funds, MPFA will conduct a detailed review to ensure that they comply with the MPF legislation and that the interests of MPF scheme members are protected.
Approval of changes to controllers and other information of trustees
MPFA also processes the applications for changes of controllers and other information of trustees to ensure that such changes comply with the MPF legislation and approval conditions.