Info Center

The MPFA attaches great importance to the quality of MPF intermediaries¹ and is concerned about their services. With a view to ensuring that scheme members’ interests are well-protected when they are receiving the services provided by intermediaries, the MPFA recently issued to the industry a series of circulars and guidance on stepping up disciplinary action to provide stronger deterrent effect in combating misconduct cases, enhancing transparency of benefits received, raising professional standards and prevention of scam calls so as to better protect the interests of scheme members. 

(I) Strengthening enforcement

The MPFA spokesperson said that the MPFA had grave concern about misconduct involving intermediaries. Addressing serious misconducts (such as unauthorized transfers of scheme members’ MPF benefits from one MPF scheme to another, forging scheme members’ signatures, impersonating scheme members in obtaining their account information, and asking scheme members to sign on blank forms), the MPFA will impose heavier disciplinary sanctions in such cases as appropriate, for example by issuing public reprimand and extending the period of suspension of registration, to strengthen deterrence effect. 

The spokesperson added that the MPFA had issued a circular earlier to remind the industry. The Authority will review and strengthen the existing guidelines and measures on a regular basis in order to combat and prevent intermediaries from engaging in misconduct to protect scheme members’ interests. 

(II) Enhancing transparency of benefits received

Another circular issued by the MPFA involved the disclosure of benefits receivable by intermediaries for providing services. At present, intermediaries should disclose to their clients at the time of the invitation, inducement or advice on whether they would charge the client any fees for the services to be provided or be compensated either directly or indirectly in other manner (such as commission or salary bonus); and whether the benefits receivable would be different depending on the client’s choice of MPF scheme. 

To further enhance transparency for more effective protection of scheme members’ interests and better address conflict of interests between intermediaries and their clients, the MPFA has, after reviewing the “Guidelines on Conduct Requirements for Registered Intermediaries” (Conduct Guidelines), raised the disclosure requirements for intermediaries. In addition to the above disclosure requirements, intermediaries should, upon clients’ request, provide their clients with specific information in relation to the monetary benefits receivable by the principal intermediaries that are directly attributable to carrying on regulated activities. Intermediaries are further requested to obtain clients’ consent for receiving benefits. 

The spokesperson said that the industry was consulted on the relevant revisions and they received support from the majority of the respondents. The revised Conduct Guidelines will take effect on 1 March 2024.  

(III) Raising professional standards 

In addition to enhancing transparency of benefits received and strengthening enforcement, the MPFA is also raising industry’s professional standards through education. In the MPFA’s revised “Guidelines on Continuing Training for Subsidiary Intermediaries”, with effect from 1 January next year, the minimum required continuing professional development (CPD) hours for subsidiary intermediaries will increase from 10 hours to 15 hours for each reporting year, and the minimum number of hours of core CPD activities will increase from two to four hours. The definition of core CPD activities has also been expanded to cover topics relating to “ethical conduct” and “regulatory compliance”. 

The spokesperson reiterated that the MPFA has been reminding intermediaries through various channels to always place scheme members’ interest first in providing their service.  The MPFA has also been educating the public through publicity important points to note in protecting scheme members’ rights whilst obtaining services from intermediaries. 

(IV) Preventing phone scams

The MPFA also issued a “Guidance Note on Conducting Sales by Unsolicited Calls” to all MPF registered intermediaries to stipulate the requirements and applicable measures relating to telemarketing to further combat scam callers. The MPFA has from time to time reminded the public to check the Register of MPF Intermediaries on the MPFA website to ascertain the registration status of intermediaries to detect improper MPF marketing activities by unregistered persons and scams in the name of MPF marketing. 

In view of recent cases of individuals suspected of engaging in MPF sales without registration, the MPFA reiterates that, according to the Mandatory Provident Fund Schemes Ordinance, all persons who engage in MPF sales and marketing activities are required to register with MPFA as an MPF intermediary.  The MPFA keeps a Public Register that contains registration information of principal and subsidiary intermediaries on the MPFA website. Members of the public are advised to check the public register to ascertain the registration status of intermediaries. 

The spokesperson added that continuous improvement in the conduct standards of intermediaries will help enhance the overall image of the industry, which is important to the smooth operation of the MPF System, and the effectiveness in protecting the retirement interests of scheme members. 

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24 October 2023