Circulars

MPF


Circular Letter: MP/No.3/2000

All Trustees & Corporate Intermediaries

Dear Sir / Madam,


Refusal of Application for Membership by a Self-Employed Person("SEP")


It has been brought to the attention of the Authority that some SEPs' applications for enrolment into a MPF Scheme have been refused because they did not provide their latest notices of tax assessment as evidence of their relevant income.


For the avoidance of doubt, please note that the law does not require a SEP to produce his notice of assessment as evidence of relevant income. A written declaration is sufficient. The trustee is not required to obtain further proof on the amount declared, or to verify the accuracy of it. It is the responsibility of the SEP to report accurately his relevant income to the trustee. If he does not do so, the SEP (not the trustee) will be liable.


For a SEP who refuses to provide evidence or make a declaration without a reasonable excuse, the relevant income of that SEP shall then be taken to be $240,000 per annum.


Accordingly, failure to provide evidence of a SEP's relevant income is NOT an acceptable excuse for a trustee to refuse the Scheme membership application of a SEP. A trustee who refuses a SEP's application for membership risks breaching section 31 of the Mandatory Provident Fund Schemes (General) Regulation. You are strongly encouraged to remind the MPF intermediaries selling your schemes not to do so.


If you have any question on the content of this letter, please feel free to contact us by email at mpfa@mpfahk.org, or via our enquiry hotline 2918 0102.


Yours sincerely


(E S W LEE) Executive Director
Member Protection Division

Last Revision Date: 17/10/2014