Bills Committee on Provident Fund Schemes Legislation (Amendment) Bill 1997
Issues requiring follow-up consideration /action

Date of
Issues Outcome
11.12.97 Proposed amendments to the Mandatory Provident Fund Schemes Ordinance (MPFSO)

Proposed section 43

  1. At member's request, the Administration will introduce a CSA to the effect that the offence clause should not apply to persons who are not approved trustees but who are appointed by the MPFA to act as scheme administrators on suspension or termination of an approved trustee's administration of a scheme.

  2. In view of the gravity of the offence of carrying on business as approved trustees without approval, the Administration has agreed to members' suggestion to add an imprisonment term to proposed section 43(3) by way of a CSA

Proposed section 43B(2)

  1. The Chairman questions the need for the proposed provisions under subsection (2)(a) and (b) as failure to participate in a registered scheme and to make contributions thereto was already prescribed an offence under the proposed subsection (1). The Administration will further consider the proposed provisions and check whether comparable provisions are available under other pieces of legislation.

11.12.97 Proposed sections 43A, 43B, 43C and 43D

  1. At members' request, the Administration will review the levels of penalty under the relevant penalty clauses and consider, for example, whether they should be structured by first/subsequent convictions.

Proposed section 43E

  1. The Administration has agreed to members' suggestion to add to the offence clause by way of CSA the element of " recklessness' on top of " knowledge " on the part of the person concerned.Others (Subsidiary legislation)

  2. Members note that in the management of a global portfolio, investment managers of MPF Schemes could only delegate the investment management of foreign securities to its subsidiary or associate incorporated and operating outside HK. They are concerned that such a requirement is unduly in favour of large international companies and may disadvantage local investment management companies without any overseas network. They called for a review to strike a reasonable balance between prudent investment practices and fair competition among investment companies for MPF business. The Administration will further study the issue.