Sanctions and Penalties 制裁及罰則

Remedial Action, Investigation and Proportionate Penalties 補救、調查與相稱罰款

The MPFA follows up suspected breaches by trustees. It may request remedial action or conduct a formal investigation into a trustee: these address the problem and establish the circumstances of the breach respectively.

A financial penalty imposed by the MPFA must reflect the seriousness of the breach, rather than apply one fixed amount to every case. Distinguish this regulatory measure from a fine following criminal conviction; the criminal maximum is not the amount automatically payable for every breach. [MPFA Study Notes, tenth edition, section 4.8](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf#page=68)

Scheme Administration and Trustee Approval 管理職責與核准資格

The MPFA may suspend a trustee from administering an MPF scheme and appoint another trustee to take over temporarily. This allows another trustee to administer the scheme while the original trustee is suspended.

Depending on the investigation results, the MPFA may also terminate the trustee’s administration of the scheme, prosecute the trustee for non-compliance and/or revoke its approval. These actions may be selected or combined as appropriate; every case need not result in all of them.

Suspension temporarily stops the administration role; termination ends that trustee’s administration of the particular scheme; revocation concerns its status as an approved trustee. Prosecution is also distinct from conviction, so identify the subject and effect of each measure carefully. [MPFA Study Notes, tenth edition, section 4.8](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf#page=68)

Criminal Penalties and Continuing Offences 刑事罰則與持續罪行

Certain trustee breaches also constitute offences under MPF legislation. An approved trustee convicted of such an offence is liable to a maximum fine of HK$5,000,000 and imprisonment for up to seven years. These are maximum penalties, rather than compulsory sentences for every conviction.

For a continuing offence, a further fine of HK$100,000 may apply for each day the offence continues. This is additional to the original fine; it neither replaces that fine nor applies daily to every trustee breach.

Calculate the original fine and the continuing-offence fine separately. For example, a further fine calculated at HK$100,000 a day for three days is HK$300,000, which is added to the original fine. [MPFA Study Notes, tenth edition, section 4.8](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf#page=68)