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The Management Board of the Mandatory Provident Fund Schemes Authority (MPFA) endorsed at its meeting today (Thursday) six sets of guidelines to facilitate service providers in complying with the MPF legislation.

The guidelines, the first batch of its kind to be issued by the MPFA, have been finalized after extensive consultations with the retirement schemes industry and discussions at the MPFA's Guidelines Committee whose membership includes representatives from The Hong Kong Federation of Insurers, the Hong Kong Investment Funds Association and the Hong Kong Trustees' Association.

The guidelines approved by the MPFA include:

1. Guidelines on Application for Approval as Trustees, which specify the forms for application for approval as MPF trustees and the information and documents to be submitted;
2. Guidelines on Application for Registration of Provident Fund Schemes, which relate to the application for registration of employer sponsored schemes and master trust schemes under the MPF Schemes Ordinance; and
3. four sets of guidelines relating to the criteria and requirements with respect to custodians of MPF assets and eligible insurers providing insurance cover for registered MPF schemes; and MPF approved funds.

The MPFA Chairman, Mr. Charles Lee Yeh-kwong, said that the guidelines would be printed and made available to service providers shortly. Details will be announced separately.

"Other guidelines to be issued in early 1999 would cover subjects relating to reporting requirements such as monthly and annual returns; investment-related issues; disclosure and other requirements on MPF trustees; application and other requirements relating to the exemption of ORSO schemes from MPF requirements," he added.

Mr. Lee said that every effort has been made to ensure that the guidelines are effective. They will be reviewed regularly and in the light of operational experience after MPF has been launched, so that the best international practices are continually adopted.

Mr. Lee revealed that the Management Board had discussed the choices of premises to accommodate the future office of the MPFA. Also on the agenda was the consultant's interim report on the study on MPFA organizational structure and remuneration package. The consultancy study is expected to be completed by the end of this month and the MPFA would proceed to recruit its staff early next year.

Mr. Lee also said that the MPFA would appoint professional designers to design a corporate logo for the Authority.

End/Thursday, December 10, 1998