Cap 485A s 23 Application requirements (MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION; MANDATORY PROVIDENT FUND SCHEMES ORDINANCE)

Contents of Section

Chapter:	485A	Title:	MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION	Gazette Number:	L.N. 69 of 1999
Section:	23	Heading:	Application requirements	Version Date:	03/08/1999

(1) An application for registration of a provident fund scheme must be signed-

(a) if the applicant is or includes a company, by at least 2 directors of the company; and

(b) if the applicant consists wholly of natural persons, by at least 2 of those persons, including the independent trustee.

(2) If an application is made by persons all of whom are natural persons, each of those persons (other than an independent trustee) must be a member or prospective member of the scheme.
(3) If an application is made by persons of whom one or more are companies and the others are natural persons, each of those natural persons must be a member or prospective member of the scheme.
(4) An application to register a provident fund scheme as an employer sponsored scheme must include particulars of the employer sponsoring the scheme.
(5) A person is an independent trustee for the purposes of section 21(3) of the Ordinance if the person-

(a) is not a controller, close relative, partner or employee of the employer sponsoring the scheme or of an associate of that employer; and

(b) where the employer sponsoring the scheme is a company, does not hold any shares of the company or of an associate of the company; and

(c) satisfies the Authority that the person has the skill, knowledge, experience and qualifications that are, in the opinion of the Authority, necessary for a person to administer provident fund schemes; and

(d) satisfies the Authority that the person has no past or present association (financial or otherwise) with-

(i) the employer sponsoring the scheme; or

(ii) a controller of that employer; or

(iii) an associate of that employer or of such a controller,

that could affect the impartiality of the person's independent judgment; and

(e) is not an auditor or actuary of the scheme.

(6) If an application is made by persons any of whom are natural persons, each of those natural persons must produce to the Authority a performance guarantee or satisfy the Authority that the trustee will have entered into such a guarantee before the scheme begins to operate.
(7) A performance guarantee relating to a person-

(a) must be issued in writing by an authorized financial institution or authorized insurer; and

(b) must impose a continuing obligation on the authorized financial institution or authorized insurer to indemnify the scheme against any loss sustained by the scheme or the scheme members as a result of-

(i) a failure by the person concerned to perform a duty imposed on approved trustees by or under the Ordinance; or

(ii) a breach of any fiduciary duties on the part of the person concerned; and

(d) may allow the guarantor to terminate its obligation under the guarantee only by giving not less than 30 days' written notice in advance to the Authority and to the person concerned.

(8) The liability of the authorized financial institution or authorized insurer under the obligation referred to in subsection (7)(b) must be at least $10000000 or an amount equivalent to 10 per cent of the net asset value of the scheme, whichever is the less.
(9) The applicant must also ensure there is in force, or arrangements have been made to enter into, adequate insurance that will indemnify scheme members against losses that the members could incur as a result of the administration of the scheme by the applicant or by any service provider appointed or engaged to provide services for the purposes of the scheme.