Info Center

The MPFA is gravely concerned about recent suspected fraudulent activities involving MPF, such as a subsidiary intermediary (SI)^Note inducing or assisting MPF scheme members to use falsified documents for early withdrawal of MPF on the grounds of permanent departure from Hong Kong (PD Claims) and unauthorized transfer of MPF from an MPF account to another account of a scheme member. To enhance awareness of the industry in guarding against fraudulent activities, the MPFA today (22 December) issued circulars to remind MPF intermediaries to comply with the relevant statutory requirements, proper procedures, and standards of conduct when handling PD Claims, and require MPF trustees to regularly review and enhance their control measures to prevent fraudulent activities to safeguard the interests of scheme members.

The circular issued by the MPFA to MPF intermediaries requires that when advising or assisting MPF scheme members to make PD Claims, they should advise scheme members about the relevant statutory requirements and proper procedures for making such claims. The MPF intermediaries should also acquire understanding of the scheme members, such as their background and the reasons for making PD Claims, to assess whether there may be any adverse consequences for them for making the claims, such as possible criminal liability for making false or misleading statements and/or using falsified documents.

Making a false or misleading statement to the MPFA or an MPF trustee is a criminal offence. Any person who aids and abets MPF scheme members to make a false PD Claim is also liable to criminal prosecution.

In the circular issued to MPF trustees, the MPFA provides further guidance to MPF trustees on strengthening member protection measures, which include, tightening of trustees’ internal controls and procedures, collaboration with principal intermediaries (PIs) Note, and education to MPF scheme members. For example, MPF trustees should, upon receiving transfer requests from scheme members, send notifications to alert scheme members who can in turn verify the legitimacy of the transfer requests. If MPF trustees come across any suspicious information, such as suspicious signatures or amendments of material information without the member’s endorsement, MPF trustees should follow up with scheme members directly for verification. MPF trustees should also regularly review and enhance their “red flag system” to ensure the effective and timely identification of suspicious cases.

In addition, MPF trustees should closely collaborate with PIs to develop effective measures to monitor any suspicious activities conducted by SIs and enhance training for them. To enhance MPF scheme members' awareness of scam prevention and personal information protection, MPF trustees should also step up fraud prevention education programmes through various channels including website, app, social media platform, etc.

– Ends – 

22 December 2023

_{Note: There are two types of MPF intermediaries: principal intermediary (PI) and subsidiary intermediary (SI). A PI is a business entity registered by the MPFA as an intermediary for selling, marketing or giving advice on MPF schemes. An SI is a person registered by the MPFA as an intermediary for selling, marketing or giving advice on MPF schemes on behalf of the PI to which the person is attached.}