On-going Monitoring of MPF Investment Funds 對強積金投資基金的持續監察

On-Site and Off-Site Supervision 實地及非實地監察

The MPFA regularly combines on-site and off-site supervision to examine how trustees oversee MPF products. Its examination covers governance arrangements, the compliance framework and the detailed controls used to put requirements into practice.

Returns submitted by trustees also provide information for supervision. The MPFA examines them and follows up irregularities. It also maintains communication with trustees so that they remain informed about MPF legislation.

Investment Compliance and Custody Arrangements 投資合規與保管安排

The MPFA checks MPF investments for compliance to uncover weaknesses in trustees' investment monitoring controls. Investment compliance concerns whether investment requirements are met; investment performance concerns the results achieved, so each needs examination.

MPF custodian arrangements are also subject to supervision. This work helps identify weaknesses in trustees' controls for monitoring those arrangements. Appointing a custodian does not remove the need to examine the trustee's monitoring mechanisms.

Fund Performance and Trustee Responsibility 基金表現與受託人的責任

The MPFA monitors individual MPF fund performance and takes follow-up action with trustees where necessary. The division of responsibility matters: the MPFA supervises and follows up, while trustees must properly assess and improve their funds' investment outcomes. MPFA monitoring does not relieve trustees of those duties.

Assessing, Remedying and Preventing Investment Breaches 投資違規的評估、補救與預防

An investment breach may be reported by a trustee or identified by the MPFA. Cases from either source are assessed, and the MPFA must ensure that all breaches are properly rectified.

Follow-up also includes ensuring appropriate compensation for affected MPF scheme members and/or funds, and effective preventive measures by the relevant trustees or investment managers. 'Members and/or funds' means that compensation must address who was affected. Correcting the breach, dealing with compensation and preventing similar incidents are separate matters that must all be addressed.