ENG-2008 — Page 123

Financial and Monetary Affairs 79

schemes may choose to remain in the existing scheme or join an MPF scheme. At year-end, there were 4 625 MPF-exempted occupational retirement schemes covering over 410 000 employees.

Mandatory Provident Fund Schemes Authority

Established in September 1998 under the Mandatory Provident Fund Schemes Ordinance, the Mandatory Provident Fund Schemes Authority (MPFA) is responsible for regulating and supervising the MPF System and ensuring compliance with the ordinance. It is also the Registrar of Occupational Retirement Schemes. To ensure that the interests of MPF scheme members are protected, the MPFA closely monitors the operation of MPF trustees and other service providers, investigates cases of non- compliance identified through reports, complaints or proactive inspections, and takes enforcement actions accordingly. The MPFA also conducts MPF investment education to strengthen the public's awareness of the need to take care of their MPF investment and disseminates in-depth messages that will assist scheme members in choosing the appropriate funds.

Recent Developments

On February 27, the Financial Secretary announced in his 2008-09 Budget the Government's proposal to make a one-off injection of $6,000 into the account of each eligible MPF/ORSO scheme member who earned not more than $10,000 a month to enhance their retirement protection. The Government and the MPFA have worked closely on this proposal. On July 10, the Mandatory Provident Schemes (Amendment) (No. 3) Ordinance 2008 was enacted to provide a legal framework for the MPFA. The MPFA has since begun collecting data on over seven million accounts from MPF/ORSO trustees and ORSO employers to assess the eligibility of scheme. members according to the eligibility criteria. The Government started injecting funds into MPF accounts in the 2008-09 financial year.

As part of its on-going effort to improve the efficiency of the MPF system, the MPFA will seek Legislative Council's approval of a plan in the 2008-09 legislative year to increase employees' control over their MPF investments by allowing them to transfer the accrued benefits from their MPF contributions to an MPF scheme of their choice at least once a year. This would encourage more active management of MPF investments by employees and prompt stronger market competition.

Companies Registry

The Companies Registry (the Registry) administers and enforces the major part of the Companies Ordinance (CO). The Registry registers local and non-Hong Kong companies and documents required to be filed under the CO and related ordinances, deregisters defunct solvent private companies and provides the public with services. and facilities for inspecting and obtaining company information kept by the Registry. It also administers and enforces several other ordinances including the Trustee Ordinance (insofar as it relates to trust companies), the Registered Trustees Incorporation Ordinance and the Limited Partnerships Ordinance. The Registry is also