Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 61

Disclosure of conflicts of interests

(1) As soon as practicable after a natural person who is an approved trustee
of a registered scheme becomes aware of any matter that gives rise or is
likely to give rise-

   (a)  to a conflict of interest between the person's duties as a trustee of
        the scheme and either the person's other duties as a trustee or the
        person's personal interests; or

   (b)  if the person is an independent trustee, to the suspension or
        revocation by the Authority of the person's approval as a trustee, the
        person must disclose the matter by giving written notice of the matter
        to each of the other persons who are approved trustees of the scheme.

(2) As soon as practicable after a person who is an officer of a company that
is an approved trustee of a registered scheme becomes aware of any matter that
gives rise or is likely to give rise-

   (a)  to a conflict of interest between the person's duties in relation to
        the scheme as an officer of the company and either the person's other
        duties as an officer of the company or the person's personal
        interests; or

   (b)  if the officer is an independent director, to the suspension or
        revocation by the Authority of the company's approval as a trustee,
        the person must disclose the matter by giving written notice of the
        matter to the company and to each of the other officers of the company
        and, if the trustee includes natural person, to each of those persons.

(3) An approved trustee to or in relation to which a disclosure is made under
this section must-

   (a)  record the disclosure in a record kept for the purpose; and

   (b)  ensure that the record is kept available at all reasonable hours for
        inspection by the Authority or any scheme member on request.

(4) A failure to comply with this section does not invalidate any decision of
the approved trustee concerned.

(5) This section does not apply to or in respect of an interest of a person in
a matter or thing which arises merely because the person is a contributor to a
provident fund scheme.

(6) If a person has disclosed the nature of a conflict of interest concerning
a matter in accordance with subsection (1), the person must not, unless the
other trustees agree-

   (a)  be present during any deliberation of those persons or the company
        with respect to the matter; or

   (b)  take part in any decision of the approved trustee with respect to the
        matter.

(7) If an officer of a company has disclosed the nature of a conflict of
interest concerning a matter in accordance with subsection

(2), the officer must not, unless the directors of the company agree-

   (a)  be present during any deliberation of the company with respect to the
        matter; or

   (b)  take part in any decision of the company with respect to the matter.

(8) For the purposes of this section, a person has a personal interest in a
matter if, because of the matter or circumstances relating to the matter-

   (a)  the person has obtained or is able to obtain, whether directly or
        indirectly, a pecuniary or other advantage; or

   (b)  the person has conferred or is able to confer a benefit on-

        (i)    a relative or friend; or

        (ii)   a body of which the person is a member or with which the person
               has a close connection; or

        (iii)  any other person to whom the person is under an obligation,
               whether legal or moral.