Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 62

Approved trustee to notify Authority of events of significant nature

(Past version on 03/08/1999).

(1) If the approved trustee of a registered scheme becomes aware of the
occurrence of an event of significant nature, the trustee must-

   (a)  not later than the third working day after becoming aware of the
        event, give written notice to the Authority setting out particulars of
        the event (except an event specified in the guidelines as an event to
        which this paragraph shall not apply);

   (b)  keep a record of particulars of the event;

   (c)  permit the Authority to inspect the record at any reasonable time
        during ordinary business hours; and

   (d)  give written notice to the Authority-

        (i)    setting out such further or better particulars of the event as
               the Authority requires; and

        (ii)   as soon as is practicable after the Authority makes that
               requirement. (29 of 2002 s. 14)

(2) The reference in subsection (1) to an event of significant nature includes
(but is not limited to) the following-

   (a)  any event that causes the approved trustee to contravene the
        Ordinance, the governing rules of the scheme or a condition to which
        the approval of the approved trustee as such is subject; and

   (b)  any material change to the approved trustee's capacity or ability to
        act as an approved trustee, including-

        (i)    a systems failure which may affect the approved trustee's
               ability to perform its duties; and

        (ii)   if the approved trustee is or includes a company, any of the
               matters specified in subsection (3); and

        (iii)  if the approved trustee is or includes a natural person, any of
               the matters specified in subsection (4); and

        (iv)   the cancellation, expiry or other termination of the insurance
               in respect of the scheme.

(3) For the purposes of subsection (2)(b)(ii), the matters to be specified
are-

   (a)  the winding-up of the approved trustee, or the appointment of a
        receiver or manager of the assets of the approved trustee;

   (b)  the discontinuation of continuous financial support provided to the
        approved trustee;

   (c)  any change or proposed change of any controller of the approved
        trustee.

(4) For the purposes of subsection (2)(b)(iii), the matters to be specified
are-

   (a)  the death or incapacity of the person or circumstances affecting the
        ability to carry out the person's duties;

   (b)  the cancellation, expiry or other termination of the performance
        guarantee in respect of the person.