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Clause 13 as drafted in the Bill provides for the transfer of accrued benefits from scheme to scheme when a relevant employee changes employment. Our policy intention is to cater for all possibilities, but some concern has been expressed that the clause fails to provide for all situations of changes in employment status. To clarify our policy intention beyond doubt, I propose to amend this clause by replacing sub- clause (1), amending sub-clause (2) and adding a new sub-clause (3) to make it clear that employment includes self-employment, and that the clause not only requires the expeditious transfer of accrued benefits, but also provides flexibility for relevant persons to retain their benefits in master trust schemes upon change of employment should they wish to do so.
Clause 16 of the Bill deals with the compensation fund which would deal with losses arising from fraud or misfeasance. The amendment to clause 16(1) and the addition of a clause 16(1A) will provide for the MPF Schemes Authority to apply to the Court for a determination in respect of lost benefits. The Court would be able to rule whether or not the losses have occurred in the circumstances described.
In response to suggestions from Members of this Council, I am deleting clause 16(7), and instead will move amendments to Schedule 9, sections 1 and 2, to make consequential amendments to the Bankruptcy Ordinance and the Companies Ordinance, so that this particular debt becomes a preferential one.
At present, clause 22 of the Bill allows the MPF Schemes Authority to authorise a corporate trustee to be the trustee of a Residual Provident Fund Scheme if the Authority thinks it is desirable, among other things, to effect access to a registered scheme for persons who are otherwise unable to obtain such membership. Some Members have expressed concern that, as drafted, clause 22 would not require the Authority to set up such schemes until after section 6 was in operation, and this might not provide sufficient comfort to individuals who are not able to find a scheme in the market. To allay these fears, I am now amending clause 22 so that the Authority may take all necessary steps to cause a Residual Provident Fund Scheme to be established prior to the commencement of any of the provisions of section 6. The purpose of the Scheme would be to provide membership, as a scheme of last resort, to those persons who had been unable to find a scheme themselves, and where the Authority is otherwise unable to find one for them.
In response to Members suggestion to enhance the secrecy provisions in the Bill in respect of reports made to the MPF Authority by self-employed persons under clause 6, I am making two amendments to clause 39 and one amendment to clause 40.