An employee can also opt to leave the accrued benefits in a separate account in the previous master trust scheme. The MPFA is responsible for ensuring compliance with the provisions of the Ordinance. Trustees are the central party in an MPF scheme. They are responsible for all aspects of a scheme and must comply with regulations and requirements including the proper control over the investment of scheme assets. Master trust schemes must be operated by corporate trustees while employer sponsored schemes may be operated by corporate trustees or individual trustees.
All trustees have to meet specific criteria for approval.
Both local and overseas companies may apply to become approved corporate trustees. In general, the policy intention is not to upset existing employer-employee relationship, but the objective is to cover as many people as possible in the MPF System in the long run. At the close of the 3 May deadline for exemption applications, the MPFA had received a total of 7,109 applications covering 640,000 employees. Losses due to poor investment will not be compensated. On 8 March 1995, the Legislative Council passed a motion urging the Government to introduce as expeditiously as possible a mandatory, privately managed retirement protection system with provision for the preservation and portability of benefits.