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The MPFA has reprimanded and suspended the registration of MAK Ka Chai (MAK) as an MPF intermediary for 20 months from 11 January 2023 to 10 September 2024¹.

The MPFA’s disciplinary action against MAK follows the determination of the Mandatory Provident Fund Schemes Appeal Board (MPFSAB) of 11 January 2023, which affirmed the MPFA’s findings that between January and August 2018 when MAK invited an MPF scheme member to join or become a member of a particular MPF scheme, he had contravened the conduct requirements under the Mandatory Provident Fund Schemes Ordinance (MPFSO)², including that when carrying on a regulated activity, a subsidiary intermediary must act honestly, fairly, in the best interests of the client and with integrity, and exercise a level of care, skill and diligence that may reasonably be expected of a prudent person who is carrying on the regulated activity.  He had also contravened the Guidelines on Conduct Requirements for Registered Intermediaries³.  The key facts of MAK’s misconduct are summarized as follows:

(1) effected two transfers without the scheme member’s authorization (Breach 1); 
(2) impersonated the scheme member in calling two MPF trustees to obtain the scheme member’s MPF account information (Breach 2); and
(3) failed to carry out the scheme member’s instructions promptly (Breach 3).

The MPFSAB was of the view that MAK’s misconduct was very serious and determined that MAK’s registration should be suspended for 20 months for Breaches 1 and 2 and publicly reprimanded for Breach 3⁴.

The case was referred to the MPFA following an investigation by the Insurance Authority.

A copy of the Statement of Disciplinary Action is available here.

– Ends – 

12 January 2023

Note (added on 3 March 2023):
Please see the MPFSAB’s determination for “Application No. 1 of 2022” on its website.

_{1. MAK (MPF Registration No. 109955) has been attached to Manulife (International) Limited as a subsidiary intermediary* since 24 July 2014.}

_{2. Section 34ZL(1)(a) and (b) of the MPFSO.}

_{3. The Guidelines provides that an MPF intermediary should:}

_{(a) take all reasonable steps to carry out client instructions promptly and accurately, notify the client after the instructions have been carried out and alert the client within a reasonable time in case of any delay or failure to execute the client’s instruction by the registered intermediary (paragraph III.17); and}

_{(b) comply with the controls, procedures and standards of conduct as required by his principal intermediary* (paragraph III.20).}

_{*  A principal intermediary is a business entity registered by the MPFA to engage in conducting MPF sales and marketing activities and giving regulated advice.  A subsidiary intermediary is a person registered by the MPFA to carry out MPF sales and marketing activities and to give regulated advice on behalf of a principal intermediary to which the person is attached.}

_{4. The MPFSAB has varied the suspension period imposed by the MPFA for the three breaches having regard to the facts of the case and case precedents, including that Breach 3 was a case of forgetfulness resulting in the failure to carry out the scheme member’s instructions promptly and though the delay of 6 months was significant, no serious prejudice was occasioned to the member.}