Non-compliance and penalties

The following table summarizes the common types of SEP non-compliance and the relevant penalties.

Type of SEP Non-compliance	Penalty
Failure to enrol in an MPF scheme	Maximum fine of $50,000 and six months’ imprisonment on the first occasion. For each subsequent conviction, the maximum penalty is a $100,000 fine and imprisonment for one year
Failure to pay mandatory contributions to trustee	Maximum fine of $50,000 and six months’ imprisonment on the first occasion. For each subsequent conviction, the maximum penalty is a $100,000 fine and imprisonment for one year

The MPFA may also impose a financial penalty on SEPs who fail to comply with the following legislative requirements.

Type of SEP Non-compliance	Penalty
Failure to pay mandatory contributions to trustee	Financial penalty of $5,000 or 10% of the amount due, whichever is greater
Failure to notify trustee in writing of your cessation of self-employment	Financial penalty of $5,000 on the first occasion, $10,000 on the second occasion and $20,000 for subsequent failures
Failure to notify trustee in writing of changes in personal particulars	Financial penalty of $5,000 on the first occasion, $10,000 on the second occasion and $20,000 for subsequent failures