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Management Board members of the Mandatory Provident Fund Schemes Authority (MPFA) were briefed on the recommendations of the government’s consultancy report on public bodies remuneration today (27 June 2002). Further discussion will be held at the next Board Meeting.

At today’s meeting, Board Members also discussed enforcement actions of the MPFA. The Authority will sustain its enforcement efforts with 3,000 proactive inspections into employment establishments in a year.

Members endorsed the enforcement strategy, aimed at maintaining employers’ compliance with the law, and to protect scheme members’ interests.

Under the strategy, visits will be made to establishments which are targets of complaints made by complainants who do not wish to disclose their identity, multiple defaulters, and companies that ignore Notices from trustees or the Authority.

Mr. Charles Lee Yeh-kwong, Chairman of the MPFA, said: “We have achieved a high enrolment rate of 93 per cent for employers, and sustainability of this has to be achieved by means of enforcement and education. Member protection is a corner stone of the MPF System.  We will spare no effort in ensuring that employers comply with the statutory requirements, and those non-compliant ones are dealt with according to the law.”

During the year 2001-02, the Authority had investigated approximately 5,000 complaints targeted against employers.

Board members were told that all complaints would be fully investigated. When cases are subsequently substantiated, the Authority would first persuade the employers concerned to rectify, failing which preparations will be made for prosecutions.

Up to 26 June 2002, a total of 603 summonses have been applied to the police. Amongst those that have been dealt with at the courts, the defendants of 380 summonses have been convicted.

At today’s meeting, the Management Board also welcomed Mr. Darren McShane who has been appointed an executive director. Mr. McShane has extensive experience and international exposure in investment management regulation. As Executive Director (Investment Regulation), he will help the MPFA further strengthen investment regulation on investment products, investment practices and the setting of disclosure standards.

Prior to this appointment, Mr. McShane had served in the Australian Securities Investment Commission (ASIC) as a Director of its Financial Services Division and Director for its Managed Investments Team. Aside from working at the ASIC, he had also worked for the UK’s Investment Management Regulatory Organisation (IMRO) – now part of the UK’s combined regulator, the FSA. 

– Ends –

27 June 2002