Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 53

Duty of approved trustee with respect to investing in financial futures contracts and financial option contracts

(1) The approved trustee of a registered scheme must ensure that the funds of
the scheme are not applied for the acquisition of financial  futures contracts
or financial option contracts, unless there is established and maintained in
respect of the scheme an effective system for monitoring the risks inherent in
dealing in contracts of those kinds.

(2) If financial futures contracts or financial option contracts are acquired
for the purposes of the scheme and an investment manager has been appointed in
respect of the scheme, the trustee must ensure that the investment manager,
and, where the investment manager has delegated any of that manager's
functions, the delegate, provide written reports to the trustee at regular
intervals with respect to the performance of those contracts. Those reports
must include particulars as to the extent to which the funds of the scheme are
exposed to the risk of incurring losses because of the holding of those
contracts.