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Chapter: | 485
 | Title: | Mandatory Provident Fund Schemes Ordinance | Gazette Number: | L.N. 68 of 1999; L.N. 70 of 1999 |
| Section: | 33 | Heading: | Suspension and termination of approved trustee's administration of registered scheme | Version Date: | 03/08/1999 |
(1) The Authority may, by written notice served on an approved trustee of a registered scheme, suspend the trustee's administration of the scheme if the Authority reasonably believes-
- (a) that the trustee's conduct with respect to the scheme is having, has had or could have an adverse effect on the financial soundness of the scheme or the interests of the scheme members; or
(b) that the trustee is engaging, or has engaged, in a forbidden investment practice specified in guidelines published under section 28.
- (a) the period for which the approved trustee's administration of the scheme is to be suspended; and
(b) the grounds for the suspension.
(4) The Authority may, if it reasonably believes that it is necessary to do so, extend the period of an approved trustee's suspension by serving a further notice on the approved trustee concerned.
(5) As soon as practicable after suspending an approved trustee's administration of a registered scheme, the Authority must hold an inquiry to determine whether or not the trustee's administration of the scheme should be terminated. The inquiry is to be held in accordance with Schedule 5A.
(6) The Authority must terminate the approved trustee's administration of a registered scheme if, at the conclusion of an inquiry held under this section, the Authority is satisfied-
- (a) that the trustee's conduct with respect to the scheme is having, has had or could have an adverse effect on the financial soundness of the scheme or the interests of the scheme members; or
(b) that the trustee is engaging or has engaged in a forbidden investment practice specified in guidelines published under section 28.
(8) An approved trustee's administration of a registered scheme is also suspended if the trustee's approval is suspended under section 20A.
(9) An approved trustee's administration of a registered scheme may also be terminated by the resignation of the trustee but only with the prior written approval of the Authority. That approval may be given only when the Authority is satisfied that adequate arrangements have been made for another approved trustee to assume responsibility for the administration of the scheme and for the legal interest in the scheme assets to be transferred to that other trustee.
(Replaced 4 of 1998 s. 2)