Mandatory Provident Fund Schemes Examination Study Guide

It is Pillar Two, and MPF is defined-contribution, not defined-benefit. Voluntary MPF contributions form part of Pillar Three.

It maps the regulators, legal and guidance instruments, and eMPF oversight that together make up the MPF regulatory framework.

The MPFA registers schemes and approves trustees; the SFC separately authorizes MPF products.

The SFC authorizes MPF products; the MA regulates authorized institutions involved in MPF and supervises relevant banking-sector intermediaries.

The MPFSO is the principal statute; subsidiary legislation sets detailed legal requirements; a code supplements the framework with relevant standards or guidance.

No. It addresses specified risks such as fraud, negligence and certain losses in transit, not losses from investing in the ordinary course.

The investment manager manages the portfolio; the custodian holds the assets. The trustee remains responsible for oversight.

An employer-sponsored scheme. A master trust serves members across employers, while an industry scheme is designed for the designated high-mobility industries.

No. Casual employees in the designated catering and construction industries are covered regardless of employment duration, subject to applicable exemptions.

No. The Notes warn that some exempt categories may remain subject to MPF requirements for other employment or self-employment.

The first 10 days of employment, regardless of its duration. The ordinary period for a non-casual relevant employee is the first 60 days.

No. Enrolment is required within 60 days unless exempt; income affects whether mandatory contributions are payable.

The later date: either when all required information is submitted or when the applicant agrees to comply with the scheme rules.

The employer pays $6,000 × 5% = $300. The employee pays nothing because $6,000 is below the $7,100 monthly minimum.

Yes. Appendix III treats such a cash allowance as relevant income; qualifying employment-expense reimbursements are treated differently.

On the date it is submitted through the drop box. Appendix IV distinguishes this from a cheque sent by post, which counts when received.

The governing rules of the relevant scheme. Employer voluntary contributions are not automatically subject to the mandatory-contribution vesting rule.

No. The transfer must cover all accrued benefits in the original TVC account in one lump sum.

$60,000 in aggregate. The two eligible amounts share the cap rather than each receiving a separate cap.

The surcharge is 5% × $10,000 = $500. The possible penalty is the higher of $5,000 and $1,000, which is $5,000.

No. Their vesting depends on the scheme’s governing rules, unlike the immediate vesting rule for mandatory contributions.

No. The benefits remain subject to preservation after transfer, unless an applicable withdrawal ground is met.

To a personal account in an MPF scheme chosen by the employee, generally once per calendar year, subject to scheme rules.

The Notes require the benefits to be transferred to another scheme the employee is eligible to join; the master-trust retention option is not the stated employer-sponsored rule.

Take all practicable steps to transfer within the applicable 30-day period, measured from the later relevant trigger; the eMPF Platform then notifies the member of completion.

No. The member must meet the small-balance conditions, including having no accrued benefits in another MPF scheme and making the required declarations.

If the person remains unlocated for six months after those steps, the accrued benefits may become unclaimed at the end of that period.

No. From the transition date, those benefits cannot offset the post-transition service portion; employer voluntary-contribution benefits may still be used.

No. The employer remains responsible for ensuring both mandatory contributions are made; the Notes describe payment to the MPFA where enrolment was not arranged.

The employee is deemed to elect a transfer to a personal account in the same scheme, and the Platform processes that transfer.

The repeated-offender part, because it covers employers or officers convicted on two or more occasions.

The defaulting trustee, at its own cost; scheme assets must not be used to indemnify its liability for the breach.

No. Industry schemes must be managed by corporate trustees; individuals may act as trustees only for employer-sponsored schemes.

No. Board reporting is a separate Compliance Standard, and the governance framework also expects effective oversight and monitoring.

The MPFA registers the scheme; the SFC authorizes it. The two roles are complementary.

The scheme contains investment options called constituent funds, into which members choose to invest their contributions and accrued benefits.

The CAF and A65F are the two funds; from age 64, the DIS allocation is 100% to the A65F.

No. Neither the DIS nor its constituent funds guarantees capital or investment returns.

The MPFA approves it under MPF requirements, while the SFC authorizes it.

Yes. The Notes include the securities-lending policy among the matters to be stated.

No. The manager must also meet the stated incorporation, financial, qualification, and independence requirements.

30% × HK$20 million = HK$6 million. Currency forward contracts may be used to meet this requirement.

No. Only necessary qualifying transaction costs may be charged; other transfer fees or financial penalties are not permitted.

At least two: one accompanies the annual benefit statement, and another is provided within two months after the reporting date.

Yes. An MPF-exempted ORSO scheme may be ORSO-registered or ORSO-exempted, provided the applicable exemption requirements are met.

The new member’s minimum MPF benefits are subject to preservation, portability and withdrawal requirements; the existing member’s benefits are not subject to those requirements.

Start with §7.2.1, which defines regulated activities and regulated advice. Registration and regulator allocation are distinct follow-up issues.

The opinion concerns a material decision, so it may be regulated advice. Check the business, employment or reward connection and whether a statutory exception applies.

No. It addresses one requirement for an individual applicant, but Type B status, attachment to a principal intermediary and the other applicable criteria must also be satisfied.

The subsidiary has the same frontline regulator as its principal intermediary. Determine the principal’s regulator under the allocation rules, including any applicable majority-business assignment.

No. The intermediary must have regard to the client’s circumstances so that the regulated activity is appropriate, alongside the other conduct duties.

Check the written change-notification duty: the principal intermediary must notify the MPFA within seven working days after the change occurs.

The assigned frontline regulator may investigate. The MPFA is the sole authority that imposes statutory disciplinary sanctions, after the required process.

The period runs from the date the MPFA gives written notice of the relevant decision, not from the date of the alleged breach.

No. The disclosure power excludes private reprimands; the Notes also require the register to record disciplinary orders made within the preceding five years.

The MPFA may refer it to the relevant frontline regulator for investigation. The MPFA, not the complainant or regulator, decides whether to impose a statutory disciplinary sanction.

Yes. The Guidelines are not exhaustive; assess the conduct against the statutory performance requirements and all relevant guidance.

Check the separate SFO offence discussed in §7.5. It is distinct from contractual action by a principal and from MPFA disciplinary orders under the MPF framework.

Straight pass-on caps the trustee’s administration fee by reference to its eMPF Platform fee. Corresponding fee reduction requires the fund expense ratio to reflect cost savings, with a shortfall paid back into the fund.

It should explain the fund’s ESG focus and investment strategy, and disclose relevant matters such as asset allocation, any benchmark and associated risks. Enhanced requirements also address assessment and monitoring.