Briefing on Fees in relation to

MPF Intermediaries

Intermediaries Registry

Supervision Division

MPFA

Industry Briefing

Agenda

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1. Background of INT Fees

2. Time and Amount

3. Process Flow for Annual Fee

4. Payment Methods

1 Background of INT Fees

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Background of INT Fees

INT Fees (s34ZN of the MPFSO)

- The fees payable to MPFA by MPFIs and applicants as

MPFIs have been temporarily waived since the 1

November 2012

- Not to waive fees permanently

- With the smooth implementation of INT regime for

MPFIs, it is time for collecting fees on MPFIs

2 Time and Amount

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Effective Date: 1 Jan 2018

- The Legislative Council passed the Mandatory

Provident Fund Schemes (Fees) Amendment

Regulation 2017 regarding revision of the level of

application fees and annual fees in relation to MPF

intermediaries

- The Amendment Regulation will come into

operation on 1 January 2018 (Effective Date)

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Summary of Fee Schedules

Section Description Fee Level

34T For registration as a PI $2,340

34U For registration as an SI $290

34V For approval of attachment of an SI to a PI $130

34W For approval as a RO $660

34ZN Annual fee payable by a PI $1,430

34ZN Annual fee payable by an SI $180

*Effective on 1 Jan 2018

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Application Fees

- All applications received by MPFA on or after 1 Jan 2018

must be accompanied by correct application fees (Please

send to MPFA Offices)

- Must be exact amount; application with under-payment

or over-payment will not be regarded as a complete

application and will not be processed

- No refund for withdrawn/unsuccessful application

- Revised guidelines and forms (e.g. Form INT-2) will be

issued in December to provide detailed guidance to MPFIs

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Application Fees

* Please note that no fee is required for notification of change of

information by a PI/SI (i.e., via Form INT-6 or INT-7)

Form No. Description Fee Level

INT-1 For registration as a PI $2,340

INT-2 /

INT-3

For registration as an SI and approval of

attachment of an SI to a PI

$420

(290+130)

INT-4 For approval as a RO $660

INT-5 For approval of attachment of an SI to a PI $130

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Annual Fees

Annual fee must be paid within one month after the first

day of the chargeable period:

- A chargeable period means a period beginning on

the date of the registration of the person as such

registered intermediary and ending immediately

before the “specified date” next following or each

successive period of 12 months

New guidelines will be issued in Dec 2017, specifying that 1

January as the specified date*

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Annual Fees

Chargeable Period and Due Date*

For existing MPFI (registered before 1 Jan 2018):

- 2018 Chargeable period: from 1 Jan to 31 Dec 2018

- Due date: 1 Feb 2018

For MPFI registered after 1 Jan 2018

- Registration date: 1 Mar 2018

- 2018 Chargeable period: from 1 Mar to 31 Dec 2018

- Due date: 1 Apr 2018

*Subject to final issuance of Guidelines by MPFA

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Timeline for Annual Fees

31 Dec 20181 Feb 2018

Chargeable period for SI (B)

1 Apr 20181 Jan 2018

Due date for Annual

Fee payment for SI (B)

SI (A) : Registered before 1 Jan 2018Timeline for Annual

Due date for Annual Fee payment for SI (A)

Chargeable period for SI (A)

1 Mar 2018

Fee SI (B) : Registered on 1 Mar 2018

For Existing & New Registered Intermediaries

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Annual Fees

Consequence of non-compliance

(i) Late Payment

If the annual fee is not paid in accordance with statutory requirements, MPFIs will be required to pay an 10% additional fee

(i) Non-payment or failure to settle full payment

The registration of the MPFI will first be suspended and then revoked

*Annual fee (and additional fee, if any) paid is non-refundable

3 Process Flow

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Process Flow

Payment Deadline

Additional Fee Notice

Suspension Letter

Revocation Letter

Payment Reminder

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Process Flow

1. Payment Reminder

- Sent by email before payment due date

- Not an excuse/defense for late or non-payment even

MPFIs did not receive Payment Reminder

- See sample Payment Reminder

*For 2018 annual fee, existing MPFIs will receive

their payment reminder in mid-December

Sample of Remittance Slip

(Lower Part of Payment Reminder)

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Process Flow

“Remittance Slip” in Payment Reminder

Contain payment information such as

• Due amount (including those under processing)

• Due date

• Payment Advice ID (key reference)

• E.g., 0123456789 (10 digit number)

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Process Flow

MPFIs are strongly encouraged to pay:

⁻ by ePayment via eService, payment information pre-

filled already --- Easy and Accurate!

⁻ by ePayment outside eService, refer to the payment

information in the Remittance Slip

⁻ by paper cheque, Remittance Slip MUST be attached

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2. Payment Deadline

- One month after the start of chargeable period

3. Additional Fee Notice

- Sent by post

- With Payment Instruction attached

- For failure to pay annual fee in full before deadline

- Impose 10% additional fee on the whole annual fee

Process Flow

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4. Suspension Letter

- MPFIs not permitted to carry on regulated activities

- List of suspended SI will be given to PI; PI should have

control and procedures in pace to ensure suspended

SIs not to carry on regulated activities

- Send by post

- With Payment Instruction attached again

Process Flow

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6. Revocation Letter

- Registration of MPFI revoked

- List of SI revoked will be given to PI

- Send by post

*Re-registration:

- Need to pay application fee again

- Need to pay annual fee for the period from date of re-

registration to end of chargeable period (i.e. 31 Dec)

Process Flow

4 Payment Methods

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Payment Methods for Application and Annual Fees

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Application Fee

• Paper chequeonly

Annual Fee

• ePayment

• Paper cheque

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• PPS

• e-Cheque

ePaymentvia

eService

• Online banking• PPS online / phone / mobile• MPFA e-Cheque Portal

ePaymentoutsideeService

Annual Fee Payment Methods

Annual Fee Payment Methods

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Advantages of ePayment via eService:

Pre-filled payment amount

Pre-filled payment reference number (Payment Advice ID)

Payment of annual fee and filing of annual return in one go

Instant acknowledgement receipt for eService payment

ePayment Online Demonstration

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Online Demo of eService (including ePayment)https://eservices.mpfa.org.hk/eservice/eng/demo.do

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Annual Fee Payment Methods

Online Banking

• MPFI can settle annual fee via their banking account or credit card through the internet banking platform

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Online Banking

• To make payment, follow the relevant on-screen instructions and select “Mandatory Provident Fund Schemes Authority” as payee and “01” for bill type

• Input the 10-digit Payment Advice ID (shown on the Remittance Slip) as the reference number and enter the payment amount

• For enquiries, contact the bank directly

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Payment by Paper Cheque

Please send to designated P.O. Box:MPFA P.O. Box 12227 GENERAL POST OFFICE

(Do not send to MPFA Office)

ePayment highly recommended because:- Longer postal and processing time for paper cheque- Bounced cheque delay payment and may cause late

payment and incur additional fee- Delay payment if there are problems in the cheque,

e.g., wrong payee name, date, amount etc.- Postage (new postage cost on 1 Jan 2018)- Not environmental friendly