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Information Centre

Trustees

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

We attach great importance to complaints lodged by the public and take this opportunity to regulate trustees’ conduct and their compliance. We are committed to handling your complaint seriously and will deploy our resources effectively to follow up your case to protect your rights as a scheme member or employer.

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

2
What will the MPFA do upon receipt of my complaint 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 your complaint according to the established procedures, including making initial contact with you by phone or in writing within seven working days from the date of receiving your complaint, reviewing the information obtained and making contact with all related parties (including the complainant and the related trustee) in order to follow up your complaint. We will notify you of the outcome upon completion of the case.

In handling complaints, the MPFA will consider whether the trustees have dealt with the complaint in a fair and impartial manner. In addition, if the complaint relates to statutory requirements, we will follow up with the trustees on whether they have acted in accordance with the relevant requirements.

3
What can I do if I want to demand monetary compensation from the trustee?

The MPFA cannot interfere with trustees’ commercial decisions, adjudicate on disputes between trustees and scheme members/participating employers or order compensations from trustees. Where necessary, you may seek professional advice.

4
I believe that the performances of the MPF constituent funds provided by the 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 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 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 your 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 trustee had made mistakes during the course of processing a complaint case, what will the MPFA do?

If the MPFA suspects that a 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 having regard to the nature of non-compliance, 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 trustee invest for a scheme member who does not make any fund choice?

Each MPF scheme offers a variety of funds for scheme members to invest. 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 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:
http://www.mpfa.org.hk/eng/information_centre/publications/booklets_publications/
mpf_system/files/DIS_Leaflet_Eng.pdf

8
Will a 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 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 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 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:
http://www.mpfa.org.hk/eng/information_centre/publications/booklets_publications/
mpf_system/files/ECA_booklet_eng.pdf

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 trustee of his existing MPF scheme the cessation of the employment. Upon the notification, the 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 trustee? How long a 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 trustee for process. The form can be downloaded from the MPFA website or obtained from their new trustee.

The original 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 trustee of their choice. Once the transfer is completed, the new 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.



Last Revision Date: 30/10/2019