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Legislation & Regulations

Circulars

MPF

26 February 2003

Circular Letter: SU/CTR/2003/001


To: All Approved Trustees of Registered Schemes


Dear Sirs,


Using of Contribution Monies for Settlement of Liabilities or Charges


It has come to the attention of the Authority that some approved trustees had utilized contribution payments from participating employers for settlement of liabilities due to themselves.


Section 12(1) of the Ordinance provides that, subject to the provisions of section 12A of the Ordinance, a contribution in respect of a member of a registered scheme vests in the member as accrued benefits as soon as it is paid to the approved trustee of the scheme. According to section 138(1) of the Mandatory Provident Fund Schemes (General) Regulation, on being satisfied that the amount of contributions paid by a participating employer or a self-employed person is correct, the approved trustee of the scheme concerned must credit the amount to the relevant scheme member's account.


The Authority would like to remind approved trustees to comply with the above legislation and it is their duties to protect members' interests by ensuring that, contribution monies must not be used to settle liabilities or charges due from employers or scheme members to themselves. The Authority takes a serious view on those trustees who strive for administrative convenience at the expense of members' interests.


Should you have any queries in connection with the above, please feel free to contact your case officer in the Authority.


Yours faithfully,


(Hendena Yu)
Chief Operating Officer (Compliance)

Last Revision Date: 17/10/2014