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MPFA reprimands and disqualifies YEUNG Kai Tak Andy as a responsible officer of an MPF principal intermediary for 30 months

 

The MPFA reprimands and disqualifies YEUNG Kai Tak Andy (YEUNG) from being approved as a responsible officer (RO) of an MPF principal intermediary1 for 30 months from 5 September 2024 to 4 March 2027.
 
YEUNG was a former RO of The Hongkong and Shanghai Banking Corporation Limited, an MPF principal intermediary (PI)2 .  The disciplinary action follows the MPFA’s sanction against the PI3 on its referral programme (Programme) in which regulatory non-compliance in relation to offering of incentives and internal controls was found.  
 
Following a referral from the MPFA, the Hong Kong Monetary Authority conducted an investigation into the matter.
 
Between April 2020 and February 2021, the PI operated the Programme under which the PI recruited human resources agencies or recruiters (who were not registered intermediaries) as referral agencies (“Introducers”) to refer to it potential MPF corporate clients.  The Introducers were offered referral fees from the PI if a referred client, the Introducers themselves and/or their associated companies participate in, make contributions to, and/or transfer MPF to the PI’s MPF scheme. Under the Programme, unregistered persons (i.e. the Introducers) were allowed to perform regulated activities4.
 
As an RO responsible for overseeing the execution of the Programme, YEUNG failed to identify the risks of not complying with the relevant conduct requirements, including the regulation of offering incentives, and the prohibition on using unregistered persons to conduct regulated activities.  The MPFA considers that the PI’s failures were attributable to the neglect of YEUNG as an RO.  His roles and responsibilities in the Programme include:
 
(a) executing and overseeing the Programme, including the relevant sales activities;
(b) making initial contacts with the management of the Introducers to introduce the Programme and participating in most of the meetings with the Introducers;
(c) signing the agreements with the Introducers on behalf of the PI; and
(d) taking part in the decision to permit and encourage the Introducers to distribute marketing materials of the PI.
 
In deciding on the disciplinary sanction, the MPFA took into account all relevant circumstances, including the nature, seriousness and impact of the PI’s regulatory non-compliance, the role YEUNG played and his degree of responsibility in relation to the launch of the Programme, and his otherwise clean disciplinary record with the MPFA.
 
A copy of the Statement of Disciplinary Action is available here.

 

 
－Ends－

5 September 2024

 

1. A principal intermediary is a business entity registered by the MPFA to engage in conducting MPF sales and marketing activities and giving regulated advice.
2. YEUNG (MPF Registration No. 078851) was a responsible officer attached to the PI from 12 March 2020 to 15 December 2022.  YEUNG was de-registered as an MPF intermediary on 23 March 2023.  He was also the Head of Pension Sales and Services of the PI at the material time, overseeing the MPF business and sales activity of frontline staff.
3. Please refer to the MPFA’s press release dated 5 July 2024 .
4. The Mandatory Provident Fund Schemes Ordinance prohibits any person to carry on regulated activities unless such person is a registered intermediary.

 

 

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