Supervision

MPF Trustees

Registration Requirements

Approval of trustees

 
MPFA is empowered to regulate and monitor the operation of the MPF System and ensure that MPF trustees comply with statutory requirements. All applicants must be approved by MPFA before they can act as trustees for MPF schemes.
 
Trustees must perform their duties in accordance with the following principles:

 

  1. exercise a reasonable level of care, skill, diligence and prudence;
  2. make use of all relevant knowledge and skill that the trustee may be reasonably expected to have to administer and maintain the scheme;
  3. ensure the assets of the scheme are invested in different investments so as to minimize the risk of losses of those assets;
  4. act in the interest of scheme members and not in the trustee’s own interest;
  5. act in accordance with the governing rules of the scheme; and
  6. supervise and exercise proper control over all service providers appointed or engaged for the purposes of the scheme.
 
Learn more about MPF approved trustees.

Approval of corporate applicants


Requirements for approval of corporate applicants as trustees include:

 

  • capital adequacy;
  • financial soundness;
  • fitness and propriety of each controller;
  • adequate mix and competency of the board of directors (including an independent director) and the chief executive officer; and
  • adequate insurance, sound governance and internal control measures.

MPFA should be satisfied that the applicant has sufficient expertise and management resources to conduct its operations effectively. Each application for approval as a trustee is examined in detail by MPFA to ensure that all approval requirements are satisfied.

Registration and approval of MPF schemes and funds


All MPF schemes must be registered with MPFA.


Upon receipt of the application for registration of MPF schemes and approval of funds, MPFA will conduct a detailed review to ensure that they comply with the MPF legislation and that the interests of MPF scheme members are protected.


Approval of changes to controllers and other information of trustees


MPFA also processes the applications for changes of controllers and other information of trustees to ensure that such changes comply with the MPF legislation and approval conditions.

Prior consent of MPFA is required for the appointment of directors or chief executive officers of trustees, as well as for the proposal of persons to become substantial shareholders of any trustee.