### Mandatory Provident Fund Schemes Ordinance 《強制性公積金計劃條例》

23. Residual Provident Fund Scheme
(1) The Authority may establish, or arrange for the establishment of, a provident fund scheme, to be known as the “Residual Provident Fund Scheme”, for the purpose specified in subsection (2). On establishing, or making arrangements for the establishment of, the Residual Provident Fund Scheme, the Authority must appoint a company that is an approved trustee to administer the scheme. (Replaced 4 of 1998 s. 2)
(2) The principal purpose of the Residual Provident Fund Scheme established under subsection (1) is to provide, as a last resort only, membership of that Scheme to a relevant employee of an employer, or to a self-employed person where that employer or self-employed person, as the case may be—
(a) (i) in the case of the employer, declares in writing to the Authority that he has not, through his own efforts or otherwise, been able to comply with the requirements of section 7(1); or
(ii) in the case of the self-employed person, declares in writing to the Authority that he has not, through his own efforts or otherwise, been able to become a member of a registered scheme as required under section 7C; (Amended 4 of 1998 s. 2)
(b) authorizes the Authority to assist him in obtaining access to a registered scheme for the purpose of compliance with the requirements referred to in paragraph (a), as applicable;
(c) provides to the Authority all information and assistance as may reasonably be required by the Authority for that purpose, and

in respect of that employer or self-employed person, as the case may be, the Authority has not succeeded in obtaining access to a registered scheme which would otherwise enable compliance with the requirements referred to in paragraph (a).
(3) If, in the opinion of the Authority, it is desirable to do so, the Authority may authorize the Residual Provident Fund Scheme to have the following additional purposes—
(a) to facilitate portability or transferability of accrued benefits to, from or between registered schemes;
(b) to provide for any unclaimed accrued benefits; and
(c) to achieve any other purposes of this Ordinance.
(4) The Authority may make rules under section 47 for the purpose of this section for the efficient and effectual operation of the Residual Provident Fund Scheme.
(5) In this section employer (僱主) includes a prospective employer, and self-employed person (自僱人士) includes a prospective self-employed person.

### Mandatory Provident Fund Schemes Ordinance 《強制性公積金計劃條例》

24. Trustee’s covenants in respect of governing rules
Where the governing rules of a registered scheme do not expressly contain covenants by the approved trustee of the registered scheme to the same, or substantially the same, effect as the implied covenants specified in Schedule 5 as to the discharge of the fiduciary duties of approved trustees, the performance or exercise of their functions in relation to registered schemes, those governing rules shall apply as if the implied covenants in that Schedule were expressly contained therein and any contrary provision in those governing rules purporting otherwise is void.
(Amended 4 of 1998 s. 2)

25. Duties of officers of corporate trustees
If the approved trustee of a registered scheme is a company, each of the officers of the company has a duty to exercise a degree of care and diligence sufficient to ensure that, as far as reasonably practicable, the company—
(a) complies with all requirements and standards prescribed by the regulations referred to in section 21C; and
(b) fulfils the trustee’s covenants (whether they are contained in the rules governing the scheme expressly or are implied because of section 24); and 
(c) performs all duties imposed on the trustee in accordance with section 27.
(Replaced 4 of 1998 s. 2)

26. Governing rules not to exempt approved trustee from liability for breach of trust etc.
A provision of the governing rules of a registered scheme is void in so far as it purports to exempt the approved trustee of the scheme from, or to indemnify that trustee against—
(a) liability for breach of trust for failure to act honestly as regards a matter concerning the scheme; or
(b) liability for breach of trust for an intentional or reckless failure to exercise, as regards a matter concerning the scheme, the degree of care and diligence that is to be reasonably expected of a trustee who is exercising functions in relation to a trust; or
(c) liability for a fine or penalty imposed by or under the law,
or purports to limit any such liability.
(Replaced 4 of 1998 s. 2)

### Mandatory Provident Fund Schemes Ordinance 《強制性公積金計劃條例》

28. Authority may publish guidelines on forbidden investment practices in relation to registered schemes
(1) The Authority may, after consultation with the Financial Secretary, make and publish in the Gazette or otherwise guidelines, for the guidance of the trustees of registered schemes, specifying which investment practices (forbidden investment practices

29. Restricted investments
(1) The approved trustee of a registered scheme may invest the accrued benefits of scheme members in restricted investments—
(a) only in so far as approved trustees are not prohibited by the regulations from investing those benefits in those investments; or 
(b) if approved trustees are not so prohibited, only in accordance with such limitations and conditions as are prescribed by the regulations. (Replaced 4 of 1998 s. 2)
(2) In this section restricted investments (受限制投資項目) means any investments in respect of an employer (or an associate of an employer) who is employing scheme members comprising—
(a) loans to that employer or associate, as the case may be, other than loans made by way of deposits with authorized institutions within the meaning of the Banking Ordinance (Cap. 155);
(b) shares or other securities of, or issued by, that employer or associate, as the case may be.

### Mandatory Provident Fund Schemes Ordinance 《強制性公積金計劃條例》

30. Report of auditor
(1) If at any time the Authority reasonably believes that circumstances exist or have existed that may prejudice the accrued benefits of a member of a registered scheme, it may, by written notice served on the approved trustee of the scheme, require that trustee—
(a) to arrange for an auditor (who must be approved by the Authority) to investigate whether or not any such circumstances exist or have existed and to investigate any other matters relating to the trustee or the scheme that may be specified in the notice and to prepare for the trustee a report on the investigation; and
(b) to provide a copy of the report to the Authority within the period specified in the notice. (Replaced 9 of 2016 s. 6)
(1A) If at any time the Authority reasonably believes that an approved trustee of a registered scheme has failed to comply with section 34DB(1)(a), (b), (c) or (d), 34DC(1), 34DD(1) or (4), 34DI(1) or (2), 34DJ(2), (3), (4) or (5) or 34DK(2), the Authority may, by written notice served on the trustee, require the trustee—
(a) to arrange for an auditor (who must be approved by the Authority)—
(i) to investigate whether or not the trustee has failed to comply with the provision;
(ii) to investigate any other matters relating to the trustee or the scheme that may be specified in the notice; and
(iii) to prepare for the trustee a report on the investigation; and
(b) to provide a copy of the report to the Authority within the period specified in the notice. (Added 9 of 2016 s. 6)
(2) The Authority may publish the report or supply the report to the scheme member referred to in subsection (1) or (1A).
(3) Any approved trustee who without reasonable excuse fails to comply with a notice in writing referred to in subsection (1) or (1A) commits an offence and is liable on summary conviction to a fine at level 2.
(Amended 9 of 2016 s. 6)