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

16. Protection of accrued benefits
(1) No part of any accrued benefits in a registered scheme in respect of a scheme member shall be taken in execution of a judgment debt or be the subject of any charge, pledge, lien, mortgage, transfer, assignment or alienation by or on behalf of the scheme member and any purported disposition to the contrary is void. (Amended 4 of 1998 s. 2)
(1A) To avoid doubt, if a scheme member is adjudicated bankrupt, the right or entitlement of the scheme member to any accrued benefits in a registered scheme is excluded from the property of the scheme member for the purposes of the Bankruptcy Ordinance (Cap. 6). (Added 7 of 2011 s. 4)
(2) Subsections (1) and (1A) apply only to accrued benefits derived from mandatory contributions. (Added 4 of 1998 s. 2. Amended 7 of 2011 s. 4)

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

17. Compensation for losses in respect of accrued benefits
(1) The Authority is required to establish a compensation fund for the purpose of compensating members of registered schemes and other persons who have beneficial interests in those schemes for losses of accrued benefits that are attributable to misfeasance or illegal conduct committed by the approved trustees of those schemes or by other persons concerned with the administration of those schemes. (Replaced 4 of 1998 s. 2)
(2) The compensation fund is to be administered by such number of administrators as the Authority may appoint for the purpose but, if there are no such administrators, the Authority must administer the compensation fund. (Replaced 4 of 1998 s. 2)
(3) For the purpose of the compensation fund referred to in subsection (1) and the cost of the administration thereof, the Authority may impose such levies, and at such rates in respect thereof, to be payable by the trustee of a registered scheme out of contributions in relation to the registered scheme in accordance with, and subject to such limits as may be specified in the regulations. (Amended 4 of 1998 s. 2)
(4) The regulations referred to in subsection (3) shall prescribe the rate of levy as a percentage of the value (as determined at a date or dates as may be prescribed in those regulations) of the assets of a registered scheme and may specify whether the payment of the levy is by way of a one off payment or by way of a continuing obligation.
(5) Regulations may be made under section 46 for the purposes of this section. Those regulations may include provisions for—
(a) the administration of the compensation fund; and
(b) the appointment of persons to be administrators of that fund; and
(c) the payment of claims to make good losses of accrued benefits. (Replaced 4 of 1998 s. 2)
(6) The Financial Secretary may provide grants or loans out of money from the general revenue that may be provided by the Legislative Council for that purpose to the persons appointed to act as administrators of the compensation fund for the purposes of that fund and on such terms as may be specified by the Authority. (Amended 4 of 1998 s. 2)
(7) Any person (including the trustee of a registered scheme) whose act or omission causes, or has caused, any loss in respect of the accrued benefits of a scheme member and which loss is subsequently compensated from the compensation fund shall be liable to repay such sum (not exceeding the amount of the loss) and interest thereon as the Court may order and that sum and interest (once recovered) shall be paid to the Authority for the purpose of reimbursing the compensation fund. (Amended 4 of 1998 s. 2)

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

17A. Scheme member may claim compensation from compensation fund
(1) A person who is a member of a registered scheme, or who claims to have a beneficial interest in the accrued benefits of a scheme member in such a scheme, may lodge with the Authority a claim for compensation from the compensation fund on the ground that—
(a) the person has suffered a loss of accrued benefits in the scheme; and
(b) the loss was attributable to misfeasance or illegal conduct committed by a person concerned with the administration of the scheme.
(2) A claim—
(a) must be made in writing and specify the particulars of the claim (including the name of the registered scheme concerned and the name of the approved trustee of that scheme); and
(b) must be lodged with the Authority within 6 months after the claimant became aware of the loss to which the claim relates.
(3) A claim that is not made in accordance with subsection (2) is barred unless the Authority otherwise determines.
(4) On receiving a claim made under this section, the Authority must investigate the claim to determine its validity.
(5) The Authority must dismiss a claim if, after investigating the claim, the Authority is satisfied that—
(a) there are no reasonable grounds for believing that a loss of accrued benefits has occurred; or
(b) if there were such grounds, there is no evidence of misfeasance or illegal conduct on the part of the trustee of the scheme or any other person referred to in subsection (1)(b).
(6) If the Authority dismisses a claim, it must notify the claimant of its decision, together with a statement of the reasons for it.
(Added 4 of 1998 s. 2)

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

17B. Application to Court
(1) If the Authority reasonably believes, whether as a result of a claim made under section 17A or otherwise, that—
(a) a loss of accrued benefits has occurred; and
(b) there is evidence of misfeasance or illegal conduct on the part of the trustee of the scheme or some other person referred to in section 17A(1)(b); and 
(c) the matter has not been resolved to the satisfaction of the person who may have suffered the loss of accrued benefits,

the Authority must make an application to the Court to have the matter determined by it.
(2) An application under subsection (1) must contain such information, and be accompanied by such documents, as may be prescribed by the regulations for the purposes of this section.
(3) If the application is made as a result of a claim made under section 17A, the application must be accompanied by a copy of the claim.
(4) At the hearing of the application—
(a) the approved trustee of the scheme; and 
(b) any person concerned with the administration of the scheme who is alleged to have committed misfeasance or to have engaged in the relevant illegal conduct,

are entitled to appear and be heard in the proceedings.
(5) On the hearing of an application made under this section, the Court must—
(a) determine whether or not the person who is alleged to have suffered a loss of accrued benefits in the scheme concerned has in fact suffered that loss; and
(b) if so, determine whether or not the loss was attributable to misfeasance or illegal conduct committed by a person concerned with the administration of the scheme.
(6) If the Court makes determinations under subsection (5), it must, by order—
(a) declare the fact and the date of the misfeasance or illegal conduct and the amount of compensation to be awarded; and
(b) direct the administrators of the compensation fund to pay that amount to such person as, in its opinion, appears to be properly entitled to receive the amount.
(7) The Court must not make an order for the payment of an amount of compensation directly to a person, unless the person has been paid or is entitled to be paid the relevant accrued benefits as provided by section 15 of the Ordinance or by regulations made for the purposes of that section.
(8) The Rules Committee constituted under section 55 of the High Court Ordinance (Cap. 4) may make rules, not inconsistent with this section, with respect to the making of applications under this section and the hearing and determination of those applications and may amend those rules as and when necessary. (Amended 31 of 1999 s. 3)
(Added 4 of 1998 s. 2)