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The following is issued on behalf of the Mandatory Provident Fund Schemes Authority:
The Management Board of the Mandatory Provident Fund Schemes Authority (MPFA) today (Thursday) endorsed a Memorandum of Understanding (MOU) between the MPFA and the Securities and Futures Commission (SFC) concerning their roles in the regulation of MPF products.
At its meeting today, the Board also endorsed the appointment of additional co-opted members to the MPFA's Guidelines Committee, the last two sets of MPF guidelines to facilitate service providers to comply with the MPF legislation, and a timetable for processing of applications for approval.
Hon Charles Lee Yeh-kwong, Chairman of the MPFA, said, "The MOU sets out in broad terms the respective responsibilities of the MPFA and the SFC in the enforcement of the MPFA's 'Code on MPF Investment Funds' and the SFC's 'SFC Code on MPF Products'."
"The MPFA will be responsible for the overall approval of MPF trustees and products and ensuring that the provisions stipulated in the MPF legislation are properly observed.
"The SFC will be responsible for vetting and authorizing the offering documents and marketing materials of MPF products. It will also be responsible for approving investment managers and continued monitoring of their conduct in the investment management of MPF products," he said.
"The MPFA has worked out a timetable for the processing of applications for approval. The MPFA and the SFC will work closely together to ensure the proper regulation of MPF products and their operators to safeguard public interest," added Mr. Lee.
The newly appointed members to the Guidelines Committee comprise representatives from The Law Society of Hong Kong, The Hong Kong Retirement Scheme Association and the Hong Kong Society of Accountants respectively.
Mr Lee said, "The appointment of three additional members to the Committee will broaden the consultation base in the preparation of MPF guidelines. This would help to ensure that the guidelines prepared would adhere to the best industry practice and the requirements of the various professions."
The two sets of guidelines endorsed today are concerned with interface arrangements between existing retirement schemes and the MPF -
(a) Guidelines on MPF Exempted ORSO Schemes - Application for Approval of Appointment of Trustees; and
(b) Guidelines on MPF Exempted ORSO Schemes - Application for Approval of Appointment of Directors of Trustees
Mr Lee said the guidelines would be printed and made available shortly. He added that the making of guidelines for MPF service providers (37 sets in total) had been completed. The complete sets of guidelines will be available at the homepage of the MPFA for downloading (http://www.mpfahk.org).
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Annex
MPF - Timetable for processing of applications for approval
Key dates
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Date Processes
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3.8.1999 * Commencement of submission of applications for
registration of MPF schemes, approval of pooled
investment funds and approval of corporate
trustees
31.8.1999 * Cut-off date for submission of the first batch
of applications for registration of master trust
schemes, approval of pooled investment funds and
approval of corporate trustees
30.9.1999 * Cut-off date for submission of the marketing
materials of the first batch of master trust
schemes
29.10.1999 * Target completion date for approval of corporate
trustees (Note 1)
3.1.2000 * Commencement of submission of applications
seeking MPF exemption of occupational retirement
schemes ("ORSO schemes")
31.1.2000 * Complete registration of the first batch of
master trust schemes (Note 2)
* Cut-off date for submission of the marketing
materials of the first batch of pooled investment
funds
3.5.2000 * Deadline for submission of applications seeking
MPF exemption of ORSO schemes
* Deadline for submission of applications seeking
registration of employer sponsored schemes
31.7.2000 * Target completion date for MPF exemption of ORSO
schemes and registration of employer sponsored
schemes (Note 1)
* Complete approval of the first batch of pooled
investment funds (Note 3)
1.12.2000 * Commencement date of MPF contributions
Note 1: The processing of applications for approval of corporate trustees, MPF exemption of ORSO schemes and registration of employer sponsored schemes will be on a first-come-first-served basis. The MPFA will grant approval/exemption/registration as soon as the MPFA has finished processing a case.
Note 2: The registration of the first batch of master trust schemes will be released on the same day (i.e. 31.1.2000).
Note 3: The approval of the first batch of pooled investment funds will be released on the same day (i.e. on or before 31.7.2000).
End/Thursday, June 24, 1999
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