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MPFA suspended the registration of Ching Shing-noi as an MPF intermediary for 15 months

The MPFA has suspended the registration of Ching Shing-noi as an MPF intermediary for 15 months from 7 September 2020 to 6 December 20211.

The MPFA found that when Ching invited or induced an MPF scheme member to join or become a member of an MPF scheme as well as to transfer the scheme member’s MPF benefits from two MPF schemes to that scheme in or about March 2018, she contravened the conduct requirements under the Mandatory Provident Fund Schemes Ordinance (MPFSO)2, including that when carrying on a regulated activity, a subsidiary intermediary must act honestly, fairly, in the best interests of the client and with integrity, have regard to the client’s particular circumstances, and make sufficient disclosure of information to the client. She also contravened the Guidelines on Conduct Requirements for Registered Intermediaries3. The key facts of Ching’s misconduct are summarized as follows:

  1. Ching effected the two transfers without the scheme member’s authorization, and despite the scheme member’s express instruction of not to transfer from one of the MPF schemes;
  2. Ching failed to ensure that eight forms or documents were duly completedbefore asking the scheme member to sign on them and failed to provide copies of the signed documents to the scheme member; and
  3. Ching failed to provide and explain information to the scheme member aboutthe MPF scheme to be joined.

In deciding on the disciplinary order, the MPFA took into account all the circumstances of the case including that Ching has no previous disciplinary record with the MPFA.

The case was referred to the MPFA following investigation by the Insurance Authority.

A copy of the Statement of Disciplinary Action is available here.

– Ends –

7 September 2020

1. Ching (MPF Registration No. 063919) has been attached to Convoy Financial Services Limited as a subsidiaryintermediary since 2 January 2007.
2. MPFSO provides that when carrying on a regulated activity, an MPF intermediary must:
(a) act honestly, fairly, in the best interests of the client, and with integrity (section 34ZL(1)(a));
(b) have such regard to the client’s particular circumstances as is necessary for ensuring that the regulated activity is appropriate to the client (section 34ZL(1)(d)); and
(c) make such disclosure of information to the client as is necessary for the client to be sufficiently informed for the purpose of making any material decision (section 34ZL(1)(e)).
3. The Guidelines provides that an MPF intermediary should:
(a) ensure that any form to be signed by a client is duly completed in all material respects before asking the client to sign on it, and provide the client with a copy of the form as soon as reasonably practicable (paragraph III.3);
(b) provide to its client information materials that would assist the client in understanding the promoted registered scheme and constituent funds relevant to a material decision being made (paragraph III.37); and
(c) explain to the client the key features of the registered scheme, the constituent funds within the relevant registered scheme, and the special features of any guaranteed funds, so as to enable the client to be sufficiently informed for the purpose of making material decisions (paragraph III.38).

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Last Review Date: 07/09/2020