Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 69

Custodial agreement

(Past version on 03/08/1999).

(1) If the approved trustee of a registered scheme appoints a custodian to
administer the scheme assets, the trustee must ensure that the contract for
the appointment of the custodian incorporates a custodial agreement that
complies with Schedule 3.

(2) If the approved trustee of a registered scheme does not appoint a
custodian to administer the scheme assets, the trustee must give an
undertaking to the Authority by deed, or by a document of like effect
acceptable to the Authority. The undertaking must incorporate the terms of a
custodial agreement that complies with Schedule 3. (1 of 2008 s. 9)

(3) If the approved trustee of a registered scheme has appointed a custodian
of the scheme assets, that trustee must take all reasonable steps to ensure
that the custodian complies with the terms of the relevant custodial
agreement.

(4) An approved trustee who, without reasonable excuse, fails to comply with
this section commits an offence and is liable on conviction to a fine at level
5.