Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 64

Approved trustee to ensure separation of scheme assets

(1) The approved trustee of a registered scheme must ensure that the scheme
assets-

   (a)  are administered and dealt with as trust property by service providers
        appointed or engaged by the trustee for the purposes of the  scheme;
        and

   (b)  are held, recorded or otherwise controlled in accordance with the
        market practices that are currently prevailing in the place where the 
        scheme assets are held, recorded or otherwise controlled, and in such
        manner as is prudent in the circumstances; and

   (c)  are applied only for the purposes of the scheme.

(2) Subsection (1) has effect irrespective of whether or not the trustee has
appointed a custodian or other service provider to perform functions with
respect to the scheme assets.

(3) The trustee must also ensure that the scheme assets are separately
recorded in the records required to be kept in respect of the  scheme and, in
particular, are distinguished-

   (a)  from the trustee's personal assets; and

   (b)  from any assets held by the trustee for the benefit of a participating
        employer or any other person.