Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 46

Independence of investment manager

Caution: This is a past version. See the current version here.

(1) For the purposes of sections 44 and 45, an investment manager, or the
delegate of an investment manager, is independent of the approved trustee of
the relevant scheme and of the custodian of the scheme assets and a delegate
of the custodian of the scheme assets only if-

   (a)  the manager or delegate is not an associate of the trustee or
        custodian or the delegate of the custodian; and

   (b)  no person is a controller of both the manager or delegate and the
        trustee or custodian or the delegate of the custodian or any associate
        of the trustee or custodian or the delegate of the custodian; and

   (c)  the manager or delegate acts independently of the trustee and
        custodian and the delegate of the custodian in their dealings with
        the  scheme.

(2) If an investment manager, or a delegate of an investment manager, and the
approved trustee, or the custodian of the scheme assets or the delegate of the
custodian of the scheme assets, are subsidiaries of-

   (a)  a substantial financial institution; or

   (b)  a holding company of a substantial financial institution, they may
        nevertheless be regarded as being independent of each other if they
        comply with subsection (3).

(3) An investment manager, or a delegate of an investment manager, and the
approved trustee, or the custodian of the scheme assets or the delegate of the
custodian of the scheme assets, comply with this subsection if-

   (a)  neither of them is a subsidiary of the other; and

   (b)  no person is a director of both of them; and

   (c)  both of them give a written undertaking to the Authority to act
        independently of each other in their dealings with the scheme. (L.N.
        223 of 2000)