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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 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 –

1.Guidelines on MPF Exempted ORSO Schemes – Application for Approval of Appointment of Trustees; and

2.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.

MPF Timetable for Processing of Applications for Approval

_Notes:

_{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.}

_{2.The registration of the first batch of master trust schemes will be released on the same day (i.e. 31.1.2000)}

_{3.The approval of the first batch of pooled investment funds will be released on the same day (i.e. 31.1.2000)}

– Ends –

24 June 1999