Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 16

Eligibility requirements for company incorporated in Hong Kong

(1) If an applicant is a company incorporated in Hong Kong-

   (a)  the applicant must be a registered trust company whose name
includes the word "trust" or "trustee" if the name is in English, or the words
"信託" or "受託人" if the name is in Chinese; and

   (b)  the company must have at least 5 directors; and

   (c)  all of the directors of the company must be natural persons; and

   (d)  the business of the applicant must be limited to trust business.

(2) The applicant must satisfy the Authority-

   (a)  that all of the controllers of the applicant are persons of good
        reputation and character and, in particular, have not been found
        guilty, whether in Hong Kong or elsewhere, of an offence involving
        fraud or dishonesty; and

   (b)  that the chief executive officer and a majority of the directors
        (which must include an independent director) of the applicant have the
        skill, knowledge, experience and qualifications that are, in the
        opinion of the Authority, necessary for the successful administration
        of provident fund schemes.

(3) The applicant must comply with the prescribed capital adequacy 
requirements.

(4) The applicant must have sufficient presence and control in Hong Kong.

(5) An applicant has sufficient presence and control in Hong Kong if-

   (a)  the applicant complies with subsection (6); and

   (b)  it has sufficient expertise and management resources in Hong Kong to
        conduct its business operations effectively; and

   (c)  the chief executive officer of the applicant ordinarily resides in
        Hong Kong.

(6) An applicant complies with this subsection if-

   (a)  the applicant's day to day business activities relating to the
        applicant's business in Hong Kong (including the keeping of its
        records relating to those activities) are conducted wholly in Hong
        Kong; or

   (b)  where those activities are not conducted wholly in Hong Kong-

        (i)    those activities are adequately supervised by the applicant
               from within Hong Kong; and

        (ii)   sufficient records of those activities are kept at a place or
               places so that those records can be readily accessible in Hong
               Kong to enable an audit of them to be carried out.

(7) The applicant must satisfy the Authority that it is capable of carrying on
a business of administering registered schemes.

(8) For the purpose of subsection (7), the Authority may enter and inspect the
premises intended to be used by the applicant for carrying on the business of
administering registered schemes.

(9) The Authority may refuse the application of an applicant who fails to
allow the Authority to enter and inspect the premises referred to in
subsection (8).