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(Cap 485, section 46) [Sections 1 to 8, 13 and 206］ 24 July 1998 L.N. 294 of 1998 Part XIV (except sections 185 to 191) 12 March 1999 L.N. 69 of 1999 Sections 9 to 12, Parts II and III, Part IV (except sections 32 to 35), Part V (except sections 56, 59 and 66), Part VI (except section 71), Parts VII to X, Sections 204 and 205, and Schedules 1 to 4 3 August 1999 L.N. 69 of 1999 Sections 32 to 35, 56, 59, 66, 71, 119 to 175 and 185 to 203 ［1 December 2000 L.N. 121 of 2000] (L.N. 201 of 1998) Cap 485A s 1 (Omitted as spent) PART I PRELIMINARY (Omitted as spent) Cap 485A s 2 Interpretation In this Regulation, unless the context otherwise requires- "account number" (帐户号码) includes a reference to a combination of numbers, letters or other symbols that identifies a member's account with a registered scheme; "accounting practice unit" (会计执业单位) means a practice unit as defined by section 2 of the Professional Accountants Ordinance (Cap 50); "actuary" (精算师) has the same meaning as in section 2 of the Occupational Retirement Schemes Ordinance (Cap 426); "adequate insurance" (足够保险) has the meaning given by section 8; "applicable accounting guideline" (适用的会计指引) means- (a) the industry accounting guideline, issued by the Hong Kong Institute of Certified Public Accountants, called the "Financial Statements of Retirement Schemes", or that guideline as amended from time to time; or (23 of 2004 s. 56) (b) if the Hong Kong Institute of Certified Public Accountants issues an accounting guideline in respect of registered schemes, that guideline, or that guideline as amended from time to time; (23 of 2004 s. 56)"approved credit rating agency" (核准信贷评级机构) means a credit rating agency approved by the Authority for the purposes of this Regulation; "approved futures exchange" (核准期货交易所) means- (a) a recognized futures market; or (b) any futures exchange established in a place outside Hong Kong that is declared by the Authority by notice published in the Gazette to be an approved futures exchange for the purposes of this Regulation; (5 of 2002 s. 407(2))"approved overseas bank" (核准海外银行) has the meaning given by section 3; "approved overseas insurer" (核准海外保险人) has the meaning given by section 4; "approved overseas trust company" (核准海外信讬公司) has the meaning given by section 5; "approved pooled investment fund" (核准汇集投资基金) has the meaning given by section 6; "approved stock exchange" (核准证券交易所) means- (a) a recognized stock market; or (b) any stock exchange established in a place outside Hong Kong that is declared by the Authority by notice published in the Gazette to be an approved stock exchange for the purposes of this Regulation; (5 of 2002 s. 407(2))"arrears" (欠款) means the mandatory contributions that are not paid by the contribution day; "assets held in Hong Kong" (在香港持有的资产) has the meaning given by section 10; "authorized financial institution" (认可财务机构) means an institution authorized under Part IV of the Banking Ordinance (Cap 155); "authorized insurer" (获授权保险人) means an insurer authorized under section 8 of the Insurance Companies Ordinance (Cap 41); "authorized mutual fund" (认可互惠基金) means a mutual fund authorized as a collective investment scheme by the Securities and Futures Commission under section 104 of the Securities and Futures Ordinance (Cap 571); (5 of 2002 s. 407(2)) "authorized unit trust" (认可单位信讬) means a unit trust authorized as a collective investment scheme by the Securities and Futures Commission under section 104 of the Securities and Futures Ordinance (Cap 571); (5 of 2002 s. 407(2)) "central securities depository" (中央证券寄存处) means a depository in Hong Kong, or a depository or a clearing agency outside Hong Kong that is approved by the Authority for the purposes of this Regulation; "consolidated report" (综合报告) means a report published in accordance with section 89; "constituent fund" (成分基金), in relation to a registered scheme, means the fund that constitutes a registered scheme, or a fund that forms part of the scheme, and complies with the requirements set out in section 36; "continuous financial support" (持续财政支援), in relation to a company that applies to be or is an approved trustee, has the meaning given by section 12; "contribution account" (供款帐户), in relation to a member of a registered scheme, means an account with the scheme into which mandatory contributions and voluntary contributions (if any) are paid in respect of any current employment or current self-employment of the member; "contribution day" (供款日)- (a) in relation to a self-employed person, means the last day of the contribution period prescribed by section 131; and (b) in relation to a participating employer, has the meaning given by section 122(1); "control objectives" (控制目标), in relation to a registered scheme, means the control objectives for the time being applicable to the scheme because of section 39; "currency forward contract" (货币远期合约) means a contract for the purchase or sale of a specific quantity of foreign currency, with delivery and settlement at a specified future date; "custodian" (保管人), in relation to the assets of a registered scheme, includes the approved trustee of the scheme if acting as the custodian of those assets in accordance with section 50(2); (L.N. 223 of 2000) "deadline" (最后期限), in relation to the financial period of a registered scheme, means the end of the day that falls 6 months after the end of that period; "debt security" (债务证券) means- (a) any debenture or other document issued by a person as evidence of a debt owed by the person or as security for the repayment of a loan (whether with or without interest); or (b) debenture stock and bonds issued by a company (whether constituting a charge on the assets of the company or not); or (c) convertible loan stock;"delegate" (获转授人), in relation to a custodian, means a person to whom the custodian has delegated the custodian's function as a custodian; (L.N. 223 of 2000) "eligible overseas bank" (合资格海外银行) has the meaning given by section 13; "encumbrance" (产权负担) includes a charge, pledge, lien and mortgage; "Fees Regulation" (《费用规例》) means the regulation (if any) made under section 46 of the Ordinance prescribing fees for the purposes of this Regulation; "financial futures contract" (财务期货合约) means a contract entered into on an approved futures exchange under which- (5 of 2002 s. 407(2)) (a) a party to the contract agrees to deliver to the other party to the contract at an agreed future time a specified security, or a quantity of specified securities, at an agreed price; or (b) the parties agree to make an adjustment between themselves at an agreed future time according to whether at that time- (i) a specified security is worth more or less than a value agreed at the time when the contract is entered into; or (ii) a number of an index of securities stands at a higher or lower level than a level agreed at the time when the contract is entered into;"financial option contract" (财务期权合约) means a contract entered into on an approved futures exchange or an approved stock exchange under which a party to the contract acquires from the other party to the contract an option or right, exercisable at or before a specified time, to be paid by that other party an amount of money to be determined by reference to the amount by which a number specified in the contract is more or less than the number of a specified stock market index as at the time when the option or right is exercised; (5 of 2002 s. 407(2)) "financial period" (财政期), in relation to a registered scheme, has the meaning given by section 79; "financial statements" (财务报表), in relation to a registered scheme, means a balance sheet and statement of account prepared or to be prepared in respect of the scheme; "independent director" (独立董事) means a director having the qualifications prescribed by section 9; "Insurance Authority" (保险业监督) means the Insurance Authority appointed under section 4 of the Insurance Companies Ordinance (Cap 41); (L.N. 223 of 2000) "insurer" (保险人), when it is not qualified by the word "authorized", means a person who is carrying on insurance business; "market value" (市值), in relation to any property, means the price that can reasonably be expected to be paid for the property if it were sold by a willing seller to a willing buyer on the open market, with both parties acting at arms length; "Monetary Authority" (金融管理专员) means the Monetary Authority appointed under section 5A of the Exchange Fund Ordinance (Cap 66); (L.N. 223 of 2000) "net assets" (净资产), in relation to a company or corporation, means the amount by which the company's or corporation's, as the case may be, total tangible assets exceed its total liabilities; (L.N. 223 of 2000) "offering document" (要约文件), in relation to a registered scheme, means a document- (a) inviting participation in the scheme by prospective participating employers or prospective members of the scheme; and (b) containing information relating to the establishment or administration of the scheme; (2 of 2002 s. 21)"ORSO exempted scheme" (职业退休豁免计划) has the same meaning as in section 2(1) of the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap 485 sub. leg.); (2 of 2002 s. 21) "ORSO registered scheme" (职业退休注册计划) has the same meaning as in section 2(1) of the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap 485 sub. leg.); (2 of 2002 s. 21) "overseas" (海外), in relation to Hong Kong, means outside Hong Kong; "participation agreement" (参与协议), in relation to a registered scheme, means an agreement- (a) between a participating employer and the approved trustee of the scheme for the employer and his employees to participate in the scheme; (b) between a self-employed person and the approved trustee of the scheme for the self-employed person to participate in the scheme; or (c) between a person intending to maintain a preserved account in the scheme and the approved trustee of the scheme; (2 of 2002 s. 21)"prescribed capital adequacy requirements" (订明资本充裕程度规定), in relation to a company that applies to be or is an approved trustee, has the meaning given by section 11; "preserved account" (保留帐户), in relation to a member of a master trust scheme or an industry scheme, means an account with the scheme (other than a contribution account) in which the accrued benefits in respect of any former employment or former self-employment of the member are held, and includes- (a) a former contribution account of the member retained in the scheme under section 147(6); (b) the member's benefits, if any, transferred to the scheme from an ORSO exempted scheme or an ORSO registered scheme; (2 of 2002 s. 21)"recognized futures market" (认可期货市场) has the same meaning as in section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance (Cap 571); (5 of 2002 s. 407(2)) "recognized stock market" (认可证券市场) has the same meaning as in section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance (Cap 571); (5 of 2002 s. 407(2)) "registered trust company" (注册信讬公司) means a trust company registered under Part VIII of the Trustee Ordinance (Cap 29); "scheme assets" (计划资产) means securities and other assets acquired and held for the purposes of a registered scheme, and includes- (a) income derived from the investment of those securities or other assets; and (b) money payable to the scheme;"securities" (证券) has the same meaning as in section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance (Cap 571); (5 of 2002 s. 407(2)) "substantial financial institution" (具规模财务机构) has the meaning given by section 7; Cap 485A s 3 What is an approved overseas bank for the purposes of this Regulation? A bank incorporated outside Hong Kong is an approved overseas bank for the purposes of this Regulation if the bank has satisfied the Authority that it is authorized by the law of a place outside Hong Kong to carry on the business of a bank and the Authority has notified the bank in writing that it has approved the bank as an overseas bank for those purposes. Cap 485A s 4 What is an approved overseas insurer for the purposes of this Regulation? An insurer incorporated outside Hong Kong is an approved overseas insurer for the purposes of this Regulation if the insurer has satisfied the Authority that it is authorized by the law of a place outside Hong Kong to carry on the business of an insurer and the Authority has notified the insurer in writing that it has approved the insurer as an overseas insurer for those purposes. Cap 485A s 5 What is an approved overseas trust company for the purposes of this Regulation? A trust company incorporated outside Hong Kong is an approved overseas trust company for the purposes of this Regulation if the company has satisfied the Authority that it is authorized by the law of a place outside Hong Kong to carry on the business of a trust company and the Authority has notified the company in writing that it has approved the company as an overseas trust company for those purposes. Cap 485A s 6 What is an approved pooled investment fund for the purposes of this Regulation? (1) An investment fund is an approved pooled investment fund for the purposes of this Regulation if it is an insurance policy, authorized unit trust or authorized mutual fund that- (a) complies with the requirements set out in section 17(2) of Schedule 1; and (b) is approved by the Authority. (2) The granting of an approval in respect of a pooled investment fund is subject to the payment to the Authority of such fee (if any) as may be prescribed in the Fees Regulation and to such conditions (if any) as the Authority considers appropriate. (2 of 2002 s. 21) (3) Where the Authority- (a) has decided that it is appropriate to- (i) amend any conditions imposed under subsection (2) or this subsection on an approved pooled investment fund; or (ii) impose conditions on an approved pooled investment fund; and(b) has given to the investment manager, insurer or trustee concerned- (i) not less than 30 days' advance notice of its decision, specifying its grounds; and (ii) an opportunity to make written representations as to why the conditions should not be amended or imposed,then the Authority may, by written notice served on the investment manager, insurer or trustee- (i) amend any conditions imposed under subsection (2) or this subsection on the investment fund; or (ii) impose conditions on the investment fund. (2 of 2002 s. 21)(4) The Authority may waive a person's compliance with a condition imposed under subsection (2) or (3)- (a) in a particular case; and (b) where the person satisfies the Authority that such compliance is not, or has not been, reasonably practicable in all the circumstances of that case. (2 of 2002 s. 21) Cap 485A s 7 What is a substantial financial institution for the purposes of this Regulation? (1) An institution is a substantial financial institution for the purposes of this Regulation if- (L.N. 223 of 2000) (a) it is an authorized financial institution, an authorized insurer, a registered trust company, an approved overseas bank, an approved overseas insurer or an approved overseas trust company; and (b) it has- (i) a paid up share capital of at least $150000000 or its equivalent in a foreign currency; and (ii) net assets of at least the same amount. (L.N. 222 of 2000; L.N. 223 of 2000)(2) The reference to "liabilities" in the determination of net assets as referred to in subsection (1)(b)(ii) may exclude in part or in whole a subordinated debt of the institution concerned where, subject to subsection (3), the Authority declares in writing that it is satisfied that under the terms of the debt instrument concerned- (L.N. 222 of 2000) (a) the claims of the lender against the institution are fully subordinated to those of all unsubordinated creditors; (b) the debt is not secured against any assets of the institution; (c) the debt has a minimum initial period to maturity of more than 5 years (and notwithstanding that the period may be reduced with the prior consent of the Authority); and (d) the debt is not repayable prior to maturity without the prior consent of the Authority. (L.N. 223 of 2000)(3) The Authority shall not make a declaration under subsection (2) in relation to an institution except after consultation with- (a) if the institution is an authorized financial institution, the Monetary Authority; (b) if the institution is an authorized insurer, the Insurance Authority. (L.N. 223 of 2000) Cap 485A s 8 What is adequate insurance for the purposes of registered schemes? (1) For the purposes of the Ordinance, an approved trustee has adequate insurance for the registered schemes administered by the trustee if there are in force 1 or more insurance policies that- (a) are obtained from 1 or more eligible insurers; and (b) cover the total managed assets of the approved trustee and do not deal with any matter other than the assets of the schemes concerned; and (c) provide an insurance cover for not less than the amount specified in subsection (4); and (d) provide for indemnity in respect of the prescribed risks set out in subsection (5) that are attributable to the administration of the schemes by the trustee or by any service provider of the scheme (excluding losses attributable to investing the funds of the scheme in the ordinary course of business); and (e) specify a deductible amount that does not exceed the maximum amount determined under subsection (6); and (f) are governed by the law of Hong Kong.(2) For the purpose of subsection (1)(a), a person is an eligible insurer if the person's business includes that of providing insurance and- (a) the person is specified in section 6(1) of the Insurance Companies Ordinance (Cap 41); or (b) the Authority is satisfied that the person is an insurer that is able to meet its liabilities.(3) Before determining whether an insurer is able to meet its liabilities, the Authority must- (a) take into account the credit rating of the insurer as determined by an approved credit rating agency; and (b) consult the Insurance Authority.(4) For the purpose of subsection (1)(c), the amount of insurance cover is to be obtained in respect of the total managed assets of an approved trustee as follows- (a) if the market value of the total managed assets is not more than $100000000-30 per cent of that value; (b) if the market value of the total managed assets is more than $100000000 but not more than $300000000-$30000000 plus 20 per cent of that value that exceeds $100000000; (c) if the market value of the total managed assets is more than $300000000 but not more than $500000000-$70000000 plus 15 per cent of that value that exceeds $300000000; (d) if the market value of the total managed assets is more than $500000000 but not more than $1000000000-$100000000 plus 10 per cent of that value that exceeds $500000000; (e) if the market value of the total managed assets is more than $1000000000 but not more than $5000000000-$150000000 plus 5 per cent of that value that exceeds $1000000000; (f) if the market value of the total managed assets is more than $5000000000 but not more than $10000000000-$350000000 plus 3 per cent of that value that exceeds $5000000000; (g) if the market value of the total managed assets is more than $10000000000-$500000000.(5) For the purpose of subsection (1)(d), the prescribed risks are as follows- (a) the risk of loss of scheme assets attributable to fraudulent, wrongful or negligent acts done or omitted to be done by- (i) the approved trustee of the scheme; or (ii) a service provider appointed or engaged for the purposes of that scheme; or (iii) an employee or agent of the trustee or of the service provider;(b) the risk of loss of scheme assets kept on the premises of the trustee or service providers or at a central securities depository; (c) the risk of loss of scheme assets while they are being transported in the custody of the trustee or service providers, or of a central securities depository; (d) the risk of loss of scheme assets arising from relying on a cheque or other negotiable instrument that is forged, fraudulently altered, lost or stolen; (e) the risk of loss of scheme assets arising from the fraudulent use of a computer or from fraudulent instructions given for the transfer of those assets; (f) the risk of loss of scheme assets arising from indemnifying the trustee in accordance with the governing rules of the scheme as permitted by law.(6) For the purpose of subsection (1)(e), the maximum amount is to be determined in respect of the total managed assets of an approved trustee as follows- (a) if the market value of the total managed assets is not more than $1000000-$100000; (b) if the market value of the total managed assets is more than $1000000, the smaller of the following amounts- (i) $500000; (ii) an amount equal to 10 per cent of the market value of the scheme assets.(7) For the purpose of this section- (a) a reference to the total managed assets of an approved trustee is a reference to the aggregate of all scheme assets of all registered schemes administered by the trustee; and (b) a reference to a deductible amount, in relation to a policy of insurance under which the insurer is liable for only the part of a claim that exceeds a specified amount, is a reference to that amount.(8) (Repealed L.N. 223 of 2000) Cap 485A s 9 Qualifications of an independent director A director is qualified as an independent director for the purposes of section 20(2) of the Ordinance and this Regulation only if the director- (a) is not an employee or partner of the applicant, or of an associate of the applicant; and (b) is not a director of an associate of the applicant; and (c) does not hold any shares of the applicant or of any associate of the applicant; and (d) satisfies the Authority that the director has no past or present association (financial or otherwise) with- (i) the applicant (otherwise than as a director or professional adviser); or (ii) any controller of the applicant; or (iii) any associate of the applicant or of any such controller, that could affect the impartiality of the director's independent judgment; and(e) is not a controller (otherwise than by virtue of being a director), close relative, partner or employee of the applicant or of any associate of the applicant; and (f) is not an auditor or actuary of any provident fund scheme administered by the applicant. Cap 485A s 10 What are assets held in Hong Kong for the purposes of this Regulation? Any of the following are assets held in Hong Kong for the purposes of this Regulation- (a) real property, including a leasehold interest in real property, located in Hong Kong; (b) computer equipment, office machinery, furniture, motor vehicles and other equipment located in Hong Kong; (c) deposits (in any currency or monetary unit) held with a Hong Kong branch of an authorized financial institution; (d) debt securities issued in Hong Kong, but only if they are transferable and registrable in a register in Hong Kong and, in the case of debt securities that are in the form of certificates, the certificates are kept in Hong Kong; (e) debt securities issued outside Hong Kong, but only if their certificates are kept in Hong Kong and are transferable by delivery (with or without endorsement); (f) negotiable instruments (including bills of exchange within the meaning of the Bills of Exchange Ordinance (Cap 19)) that are kept in Hong Kong; (g) shares of a company, wherever incorporated and whether or not a company within the meaning of section 2 of the Companies Ordinance (Cap 32) or an oversea company, being shares that- (i) are transferable and registrable only in a register kept in Hong Kong; or (ii) are, in the ordinary course of business, transferable and registrable in a register kept in Hong Kong and their certificates (if any) are kept in Hong Kong;(h) debts that may be enforced only by legal proceedings brought in a Hong Kong court; (i) an interest in an authorized unit trust that is realizable in Hong Kong, but only if the governing law of the trust is the law of Hong Kong. Cap 485A s 11 Prescribed capital adequacy requirements (1) The requirements set out in this section are the prescribed capital requirements that have to be complied with by a company that applies to be or is an approved trustee of a registered scheme. (2) The prescribed capital adequacy requirements are complied with if the company- (a) has a paid up share capital of at least $150000000; and (b) owns net assets of at least the same amount; and (c) owns assets held in Hong Kong to the value of at least $15000000.(3) The prescribed capital adequacy requirements are also complied with if the company- (a) is an associate of- (i) a company or corporation that is a substantial financial institution and provides continuous financial support to the first-mentioned company; or (ii) a company or corporation having a subsidiary that is a substantial financial institution and provides continuous financial support to the first-mentioned company; and (L.N. 223 of 2000)(b) has a paid up share capital of at least $30000000 and owns net assets of at least the same amount; and (c) owns assets held in Hong Kong to the value of at least $15000000. Cap 485A s 12 What is continuous financial support for the purposes of this Regulation? For the purposes of this Regulation, a substantial financial institution provides continuous financial support to a company that applies to be or is an approved trustee if the institution gives the Authority a written undertaking by deed or like form, acceptable to the Authority, that the institution- (L.N. 223 of 2000) (a) will, if so required by the Authority, subscribe sufficient additional capital of not more than $30000000 when the paid up share capital or net assets of the trustee or the applicant becomes less than that amount; and (b) will not, without the approval of the Authority, do any act to dispose of, or authorize the disposal or issue of, any part of the share capital or assets of the trustee or the applicant as a result of which the trustee or the applicant ceases to be an associate of the institution. (L.N. 223 of 2000) Cap 485A s 13 What is an eligible overseas bank for the purposes of this Regulation? A bank is an eligible overseas bank for the purposes of this Regulation if- (a) it is a bank incorporated outside Hong Kong and not holding a valid banking licence under the Banking Ordinance (Cap 155); and (5 of 2002 s. 407(2)) (b) it satisfies a minimum credit rating set by the Authority, based on the credit rating of the bank as determined by an approved credit rating agency. Cap 485A s 14 Definition PART II APPLICATION FOR APPROVAL AS TRUSTEE In this Part, "applicant" (申请人) means an applicant for approval under section 20 of the Ordinance. Cap 485A s 15 Eligibility for approval as trustee The Authority may approve an applicant under section 20 of the Ordinance only if the applicant satisfies the requirements of section 16, 17 or 19, as the case requires. Cap 485A s 16 Eligibility requirements for company incorporated in Hong Kong (1) If an applicant is a company incorporated in Hong Kong- (a) the applicant must be a registered trust company whose name includes the word "trust" or "trustee" if the name is in English, or the words "信讬" or "受讬人" if the name is in Chinese; and (b) the company must have at least 5 directors; and (c) all of the directors of the company must be natural persons; and (d) the business of the applicant must be limited to trust business.(2) The applicant must satisfy the Authority- (a) that all of the controllers of the applicant are persons of good reputation and character and, in particular, have not been found guilty, whether in Hong Kong or elsewhere, of an offence involving fraud or dishonesty; and (b) that the chief executive officer and a majority of the directors (which must include an independent director) of the applicant have the skill, knowledge, experience and qualifications that are, in the opinion of the Authority, necessary for the successful administration of provident fund schemes.(3) The applicant must comply with the prescribed capital adequacy requirements. (4) The applicant must have sufficient presence and control in Hong Kong. (5) An applicant has sufficient presence and control in Hong Kong if- (a) the applicant complies with subsection (6); and (b) it has sufficient expertise and management resources in Hong Kong to conduct its business operations effectively; and (c) the chief executive officer of the applicant ordinarily resides in Hong Kong.(6) An applicant complies with this subsection if- (a) the applicant's day to day business activities relating to the applicant's business in Hong Kong (including the keeping of its records relating to those activities) are conducted wholly in Hong Kong; or (b) where those activities are not conducted wholly in Hong Kong- (i) those activities are adequately supervised by the applicant from within Hong Kong; and (ii) sufficient records of those activities are kept at a place or places so that those records can be readily accessible in Hong Kong to enable an audit of them to be carried out. (7) The applicant must satisfy the Authority that it is capable of carrying on a business of administering registered schemes. (8) For the purpose of subsection (7), the Authority may enter and inspect the premises intended to be used by the applicant for carrying on the business of administering registered schemes. (9) The Authority may refuse the application of an applicant who fails to allow the Authority to enter and inspect the premises referred to in subsection (8). Cap 485A s 17 Eligibility requirements for company incorporated outside Hong Kong (1) If an applicant is a company incorporated outside Hong Kong- (a) the applicant must be a company to which Part XI of the Companies Ordinance (Cap 32) applies, and whose name includes the word "trust" or "trustee" if the name is in English, or the words "信讬" or "受讬人" if the name is in Chinese; and (b) the objects of the company must contain some of, but not more than, those specified in section 81 of the Trustee Ordinance (Cap 29); and (c) the company must have at least 5 directors and all of the directors of the company must be natural persons; and (d) the applicant must satisfy the Authority as to the matters specified in subsection (2).(2) The following matters are specified for the purposes of subsection (1)(d)- (a) the applicant is incorporated or registered in a jurisdiction where there are in force laws relating to corporations and trusts and that those laws are comparable to those of Hong Kong; (b) the applicant is adequately regulated under those laws and is adequately supervised by an authority established in that jurisdiction that is acceptable to the Authority; (c) that authority certifies to the Authority that the applicant is in good standing and has not contravened any requirement under the laws relating to corporations or trusts in force in that jurisdiction; (d) the business of the applicant is limited to trust business; (e) the applicant has experience in conducting business internationally, and standing as an international financial institution, that are acceptable to the Authority.(3) The applicant must designate one of its controllers to be its Hong Kong chief executive officer. The Hong Kong chief executive officer- (a) must be a natural person; and (b) must, either alone or with others, be immediately responsible to the directors of the company for the conduct of the whole of the applicant's business in Hong Kong.(4) The applicant must satisfy the Authority- (a) that all of the controllers of the applicant are persons of good reputation and character and, in particular, have not been found guilty, whether in Hong Kong or elsewhere, of an offence involving fraud or dishonesty; and (b) that the chief executive officer, the Hong Kong chief executive officer and a majority of the directors (which must include an independent director) of the applicant have the skill, knowledge, experience and qualifications that are, in the opinion of the Authority, necessary for the successful administration of provident fund schemes.(5) The applicant must comply with the prescribed capital adequacy requirements. (6) The applicant must have sufficient presence and control in Hong Kong. (7) An applicant has sufficient presence and control in Hong Kong if- (a) the applicant complies with subsection (8); and (b) it has sufficient expertise and management resources in Hong Kong to conduct its business operations effectively; and (c) the Hong Kong chief executive officer of the applicant ordinarily resides in Hong Kong.(8) An applicant complies with this subsection if- (a) the applicant's day to day business activities relating to the applicant's business in Hong Kong (including the keeping of its records relating to those activities) are conducted wholly in Hong Kong; or (b) where those activities are not conducted wholly in Hong Kong- (i) those activities are adequately supervised by the applicant from within Hong Kong; and (ii) sufficient records of those activities are kept at a place or places so that those records can be readily accessible in Hong Kong to enable an audit of them to be carried out.(9) The applicant must satisfy the Authority that it is capable of carrying on a business of administering registered schemes. (10) For the purpose of subsection (9), the Authority may enter and inspect the premises intended to be used by the applicant for carrying on the business of administering registered schemes. (11) The Authority may refuse the application of an applicant who fails to allow the Authority to enter and inspect the premises referred to in subsection (10). (12) The applicant must enter into a written undertaking with the Authority that the applicant, and all transactions relating to the administration by the applicant in Hong Kong of provident fund schemes and all disputes arising out of those transactions, will be governed by the law of Hong Kong. Cap 485A s 18 Auditor's report on prescribed capital adequacy requirements (1) An applicant under section 16 or 17 must submit to the Authority, on or before such date as the Authority may specify, a written report prepared by an auditor appointed by the applicant and addressed to the applicant. (2) The report must state, in the opinion of the auditor, whether or not the applicant, as at a date agreed between the applicant and the Authority subject to subsection (3), complies with the prescribed capital adequacy requirements. (3) The date referred to in subsection (2) must be on or before the date on which the Authority approves the applicant's application. (4) The report may include such observations, elaborations, qualifications or explanations as the auditor considers necessary. (5) If the Authority requires an applicant to rectify a matter relating to any of those observations, elaborations, qualifications or explanations, the applicant must submit to the Authority, before the end of the period within which the Authority has allowed for the matter to be rectified, a second report prepared by the same auditor who prepared the report referred to in subsection (1). (6) The second report must state whether or not, in the opinion of the auditor, the matter relating to the observations, elaborations, qualifications or explanations included by the auditor in the written report has been rectified. Cap 485A s 19 Eligibility requirements for natural persons An applicant who is a natural person must- (a) ordinarily reside in Hong Kong; and (b) satisfy the Authority that the applicant is a person of good reputation and character and, in particular, has not been found guilty, whether in Hong Kong or elsewhere, of an offence involving fraud or dishonesty. Cap 485A s 20 Applicant's other business compatible with interests of scheme members (1) The Authority may approve the application of an applicant only if it is of the opinion that all businesses carried on by the applicant (other than the business of administering provident fund schemes) are compatible with the interests of members of provident fund schemes administered by the applicant. (2) Subsection (1) applies even though the applicant is able to comply with the other provisions of this Part and with the requirements of the Authority made under this Part. Cap 485A s 21 Definitions PART III REGISTRATION OF SCHEMES (1) In this Part- "applicant" (申请人), in relation to a provident fund scheme, means the applicant for the scheme to be registered in accordance with section 21 or 21A of the Ordinance and, if an application is made by 2 or more trustees, means those trustees jointly; "the scheme" (计划), in relation to the application made by an applicant, means the provident fund scheme to which the application relates. (2) A reference to an approved trustee, in relation to an application to register a provident fund scheme other than as an industry scheme, includes a reference to a natural person or company that has applied for approval as an approved trustee under section 20 of the Ordinance. Cap 485A s 22 Undertaking to comply with requirements and standards An applicant must give a written undertaking to the Authority that the applicant will ensure that, as far as reasonably practicable, the requirements and standards prescribed in Part IV will be complied with in relation to the provident fund scheme concerned if it is registered. Cap 485A s 23 Application requirements (1) An application for registration of a provident fund scheme must be signed- (a) if the applicant is or includes a company, by at least 2 directors of the company; and (b) if the applicant consists wholly of natural persons, by at least 2 of those persons, including the independent trustee.(2) If an application is made by persons all of whom are natural persons, each of those persons (other than an independent trustee) must be a member or prospective member of the scheme. (3) If an application is made by persons of whom one or more are companies and the others are natural persons, each of those natural persons must be a member or prospective member of the scheme. (4) An application to register a provident fund scheme as an employer sponsored scheme must include particulars of the employer sponsoring the scheme. (5) A person is an independent trustee for the purposes of section 21(3) of the Ordinance if the person- (a) is not a controller, close relative, partner or employee of the employer sponsoring the scheme or of an associate of that employer; and (b) where the employer sponsoring the scheme is a company, does not hold any shares of the company or of an associate of the company; and (c) satisfies the Authority that the person has the skill, knowledge, experience and qualifications that are, in the opinion of the Authority, necessary for a person to administer provident fund schemes; and (d) satisfies the Authority that the person has no past or present association (financial or otherwise) with- (i) the employer sponsoring the scheme; or (ii) a controller of that employer; or (iii) an associate of that employer or of such a controller, that could affect the impartiality of the person's independent judgment; and(e) is not an auditor or actuary of the scheme.(6) If an application is made by persons any of whom are natural persons, each of those natural persons must produce to the Authority a performance guarantee or satisfy the Authority that the trustee will have entered into such a guarantee before the scheme begins to operate. (7) A performance guarantee relating to a person- (a) must be issued in writing by an authorized financial institution or authorized insurer; and (b) must impose a continuing obligation on the authorized financial institution or authorized insurer to indemnify the scheme against any loss sustained by the scheme or the scheme members as a result of- (i) a failure by the person concerned to perform a duty imposed on approved trustees by or under the Ordinance; or (ii) a breach of any fiduciary duties on the part of the person concerned; and (c) must be governed by the law of Hong Kong; and (d) may allow the guarantor to terminate its obligation under the guarantee only by giving not less than 30 days' written notice in advance to the Authority and to the person concerned.(8) The liability of the authorized financial institution or authorized insurer under the obligation referred to in subsection (7)(b) must be at least $10000000 or an amount equivalent to 10 per cent of the net asset value of the scheme, whichever is the less. (9) The applicant must also ensure there is in force, or arrangements have been made to enter into, adequate insurance that will indemnify scheme members against losses that the members could incur as a result of the administration of the scheme by the applicant or by any service provider appointed or engaged to provide services for the purposes of the scheme. Cap 485A s 24 Application to include statement of investment policy (1) An application must include a statement setting out the investment policy (including the investment objectives) of the scheme. (2) The statement of investment policy must include sufficient information to enable scheme members to ascertain in relation to each constituent fund of the scheme- (a) the investment objectives of the fund; and (b) the policy as to the kinds of securities and other assets in which the fund may be invested; and (c) the policy as to the balance between different kinds of securities and other assets of the fund; and (d) the policy regarding the acquisition, holding and disposal of financial futures contracts and financial option contracts for the purposes of the fund; and (e) the risks inherent in implementing the policies referred to in paragraphs (b), (c) and (d) and the return expected to result from giving effect to those policies. Cap 485A s 25 Notice of registration of industry scheme (1) The Authority must publish in the Gazette, within 7 days after an industry scheme is registered under section 21A of the Ordinance, a notice of that registration. (2) For the purposes of section 21A(11) of the Ordinance, the notice referred to in subsection (1) must contain the following particulars- (a) the name of the scheme; (b) the name and address of the approved trustee of the scheme; (c) the type of industry to which the scheme relates; (d) the documents to be provided by an employer who applies to participate in the scheme; (e) the documents to be provided by a self-employed person who applies to become a member of the scheme. Cap 485A s 26 Operation of this Part PART IV REQUIREMENTS AND STANDARDS FOR REGISTERED SCHEMES The requirements and standards set out in sections 27 to 41 are the requirements and standards prescribed for the purposes of section 21C of the Ordinance. Cap 485A s 27 Eligibility of approved trustees of employer sponsored scheme (1) If all the approved trustees of an employer sponsored scheme are natural persons, at least one of those trustees must be an independent trustee and the others must be members of the scheme. (2) If one or more of the approved trustees of an employer sponsored scheme are companies and the others are natural persons, each of the natural persons must either be an independent trustee or a member of the scheme. (3) A person is an independent trustee for the purposes of this Part only if the person continues to satisfy the requirements set out in section 23(5). Cap 485A s 28 Appointment of officer of approved trustee that is a company (1) If an approved trustee of a registered scheme is a company and the office of an officer of the company becomes vacant, an application must be made to the Authority for its consent to the appointment of a replacement officer within 30 days after the vacancy arises. (2) An officer may be appointed in respect of an approved trustee of a registered scheme that is a company only if the Authority has given its prior written consent to the appointment. Cap 485A s 29 Maintenance of adequate insurance (1) There must be in force in respect of a registered scheme adequate insurance that will indemnify scheme members against losses that the members could incur as a result of the administration of the scheme by the trustee or by any service provider appointed or engaged to provide services for the purposes of the scheme. (2) The insurance relating to the scheme must provide that it may be terminated by the insurer only if the insurer gives not less than 30 days' written notice in advance to the trustee or the service provider by whom the insurance was entered into. Cap 485A s 30 Maintenance of valid performance guarantee (1) A valid performance guarantee of a kind referred to in section 23(6) must be maintained in respect of an approved trustee of a registered scheme who is a natural person. (2) On receipt of a notice referred to in section 23(7)(d), another performance guarantee that complies with section 23(7) and (8) must be obtained before the current guarantee terminates. Cap 485A s 31 Non-refusal of scheme applicants (1) An application for membership of a registered scheme that is made by or on behalf of a relevant employee of a participating employer, or by a self-employed person who is 18 years of age or over and below retirement age, must not be refused if that employee or person- (2 of 2002 s. 21) (a) provides or is willing to provide the information required by the approved trustee with respect to such applications for membership of the scheme; and (L.N. 223 of 2000) (b) agrees in writing to comply with the governing rules of the scheme.(1A) An application for participation in a registered scheme that is made by or on behalf of an employer must not be refused if that employer- (a) provides or is willing to provide the information required by the approved trustee with respect to applications for participation; and (b) agrees in writing to comply with the governing rules of the scheme. (L.N. 223 of 2000)(1B) An application for membership of a registered scheme that is made by a person only for the purpose of maintaining a preserved account within the scheme must not be refused if that person- (a) provides or is willing to provide the information required by the approved trustee with respect to such applications for membership of the scheme; and (b) agrees in writing to comply with the governing rules of the scheme. (L.N. 223 of 2000)(2) The following information must be disclosed to a person who is considering making an application to become a scheme member or participating employer- (L.N. 223 of 2000) (a) the requirements and information required for application for membership of or participation in the scheme; (L.N. 223 of 2000) (b) the governing rules of the scheme; (c) scheme information, including all of the fees and charges payable under the scheme.(3) The information referred to in subsection (2)(c) must include (but is not limited to) the actual amounts of the annual fees payable in respect of- (a) scheme members of the different income levels prescribed by the guidelines; and (b) participating employers of the different scales of operation prescribed by the guidelines.(4) A scheme applicant must be given a notice of acceptance within 30 days from the date on which the applicant submits all the information required for the application for membership of or participation in the scheme, or from the date on which the applicant agrees to observe and accept the governing rules of the scheme, whichever is the later. (L.N. 223 of 2000) (5) The membership of a scheme member may be terminated by the approved trustee only in accordance with the governing rules of the scheme and- (a) in the case of a scheme member who is a relevant employee, with the written agreement of that member or the participating employer of that member given not earlier than 60 days before the termination; or (b) in the case of a scheme member who is a self-employed person or former self-employed person, and who is 18 years of age or over and below retirement age, with the written agreement of that member given not earlier than 60 days before the termination. (L.N. 223 of 2000; 2 of 2002 s. 21)(6) The participation of an employer may be terminated by the approved trustee only in accordance with the governing rules of the scheme and with the written agreement of the participating employer given not earlier than 60 days before the termination. (L.N. 223 of 2000) (7) In respect of a scheme member whose accrued benefits are being or have been transferred pursuant to Part XII, no fees may be charged, no financial penalties may be imposed and no other restrictions or requirements shall be applied to prevent or to hinder the relevant participating employer or the scheme member from terminating his participation in the registered scheme of the transferor trustee or the liability to contribute to that registered scheme. (L.N. 223 of 2000) Cap 485A s 32 Acceptance of contributions and accrued benefits being transferred (1) All contributions paid to the approved trustee of a registered scheme in accordance with section 7A, 7C or 11 of the Ordinance by participating employers and by self-employed persons who are scheme members must be accepted. (2) Accrued benefits transferred to the scheme from another registered scheme in accordance with this Regulation, or from an occupational retirement scheme exempted under section 5 of the Ordinance, must also be accepted. Cap 485A s 33 Requirements with respect to voluntary contributions (1) Accrued benefits derived from the voluntary contributions must not be paid by the approved trustee of a registered scheme otherwise than by reference to those contributions and the income or profits derived from their investment. (2) The governing rules of the scheme must provide- (a) that participating employers are obliged, on request by any of their employees who are members of the scheme, to pay to the trustee of the scheme any voluntary contribution made by those employees; and (b) if a participating employer elects to make voluntary contributions in respect of any employees who are members of the scheme, that those contributions will become vested in those employees as accrued benefits in accordance with the governing rules of the scheme; and (c) if an employee or a self-employed person who is a member of a registered scheme elects to make voluntary contributions, that those contributions will become vested in full as accrued benefits in that employee or self-employed person when the contributions are received by the approved trustee of the scheme.(3) If a member of the scheme so requests, accrued benefits derived from voluntary contributions made by or in respect of the member must be paid to the member as provided by the governing rules of the scheme. Where any of those voluntary contributions are required to be made by the scheme member's employer, then the governing rules of the scheme must, not later than 6 months after the commencement of this subsection, provide for the payment of any accrued benefits derived from voluntary contributions if the employer has failed to make such a required voluntary contribution to the scheme within 6 months after- (a) if the amount of the voluntary contributions required to be made by the employer is determined by reference to the income derived from the employee's employment with the employer, the end of the period covered by the payment of such income; (b) if the amount of the relevant contributions required to be made by the employer is determined by reference to a period of employment of the employee with the employer, the end of such period. (2 of 2002 s. 21) Cap 485A s 34 No fees etc. for transfer of accrued benefits other than actual expenses No fees may be charged, and no financial penalties may be imposed, for transferring accrued benefits from a registered scheme to another scheme or from one account to another account within the scheme, other than actual and reasonable expenses incurred by the trustee as a result of redeeming funds in connection with the transfer from a unit trust or similar type of investment and of purchasing units in another such investment, where a difference in price of the units is normally associated with the redemption of those funds and the purchase of those units. Cap 485A s 35 No fees etc. for transfer of accrued benefits in certain circumstances (1) If, after contributions have ceased to be paid to a registered scheme by or on behalf of a scheme member, no fees may be charged, and no financial penalties may be imposed, for the transfer of the member's accrued benefits to another scheme or from one account to another account within the scheme. (2) Subsection (1) applies only to the first transfer of those benefits made in respect of the member and only if- (a) that transfer is made within not more than 12 months after the date on which the contributions ceased to be paid; and (b) the amount of those benefits, at the time of the transfer, does not exceed $5000. Cap 485A s 36 Scheme may consist of a single constituent fund or of separate constituent funds (1) A registered scheme may consist of a single constituent fund, or of 2 or more constituent funds. (2) A constituent fund must be approved by the Authority. (3) If the scheme comprises 2 or more constituent funds, each of the funds must have different investment policies so as to provide scheme members with a choice as to the investment of their accrued benefits. Cap 485A s 37 Provisions relating to capital preservation fund (1) At least one of the constituent funds of a registered scheme must be a capital preservation fund. (2) A capital preservation fund- (a) may be invested only- (i) by placing it on deposit in accordance with section 11 of Schedule 1, but only for a term not exceeding 12 months; or (ii) in debt securities with a remaining maturity period of 2 years or less and of a kind referred to in section 7(2)(a) or (b) of Schedule 1; or (iii) in debt securities with a remaining maturity period of 1 year or less and that satisfy the minimum short term credit rating set by the Authority, based on the credit rating of the securities as determined by an approved credit rating agency; and(b) must have an average portfolio remaining maturity period of not more than 90 days; and (c) must have a total value of Hong Kong dollar currency investments equal to the total market value of the fund, as measured by the effective currency exposure, in accordance with section 16 of Schedule 1; and (d) must operate as a unit trust, or as a unitized insurance policy issued by an authorized insurer.(3) After taking into account any losses arising from the investment of the funds comprising a capital preservation fund, all income and profits derived from the investment of those funds must be credited to the scheme members concerned at least once each month. (4) Amounts may be deducted from the account of a scheme member whose accrued benefits form part of a capital preservation fund only as provided by subsections (5) to (7). (5) If the approved trustee of a registered scheme some or all of the funds of which comprise a capital preservation fund is required to pay a levy under section 17(3) of the Ordinance, such amount as may be necessary to enable the trustee to pay the levy may be deducted from the account of each scheme member whose accrued benefits form part of that fund. The amount is to be calculated as follows- A=L× MAB CPA where- A represents the amount to be calculated; L represents the amount of the levy; MAB represents the member's accrued benefits that form part of the capital preservation fund; CPA represents the total funds comprising the capital preservation fund.(6) If- (a) funds attributable to a scheme member form part of a capital preservation fund; and (b) the amount of the income and profits derived from the investment of those funds for a particular month exceeds the amount of interest that would be earned if those funds had been placed on deposit in a Hong Kong dollar savings account at the prescribed savings rate,an amount not exceeding the excess may be deducted from the member's accrued benefits as scheme administrative expenses for that month. (7) However, if for a particular month no amount is deducted as administrative expenses under subsection (6), or the amount of administrative expenses that is deducted under that subsection is less than the amount of administrative expenses for the month, the deficiency may be deducted from the amount of any excess that may remain in respect of any of the following 12 months after deducting the administrative expenses applicable to that following month. (8) In this section- "authorized financial institution" (认可财务机构) means an authorized financial institution belonging to a class specified by the Authority from time to time for the purposes of this subsection by notice published in the Gazette; (L.N. 223 of 2000) "Hong Kong dollar savings account" (港元储蓄帐户) means a Hong Kong dollar savings account established by an authorized financial institution; "prescribed savings rate" (订明储蓄利率) means the rate prescribed by the Authority for the purposes of this subsection by notice published in a Chinese language newspaper and an English language newspaper circulating in Hong Kong as- (a) the rate at which interest is for the time being payable in respect of a Hong Kong dollar savings account; or (b) if different authorized financial institutions pay interest on Hong Kong dollar savings accounts at different rates, the rate determined by the Authority as the average of those rates. Cap 485A s 38 Statement of investment policy to be maintained in respect of each registered scheme (1) A statement of investment policy must be prepared and maintained in respect of each registered scheme. (2) The statement of investment policy must include sufficient information to enable scheme members to ascertain in relation to each constituent fund of the scheme- (a) the investment objectives of the fund; and (b) the policy as to the kinds of securities and other assets in which the fund may be invested; and (c) the policy as to the balance between different kinds of securities and other assets of the fund; and (d) the policy regarding the acquisition, holding and disposal of financial futures contracts and financial option contracts for the purposes of the fund; and (e) the risks inherent in implementing the policies referred to in paragraphs (b), (c) and (d) and the return expected to result from giving effect to those policies. Cap 485A s 39 Control objectives and internal control procedures to be maintained for each registered scheme (1) Control objectives that comply with subsection (2) must be established for each registered scheme and be maintained at all times while the scheme is registered. (2) For the purposes of subsection (1), the control objectives of a registered scheme must include (but are not limited to) the following- (a) ensuring that the scheme assets are safeguarded in the interests of scheme members; (b) ensuring that the guidelines made by the Authority under section 28 of the Ordinance with respect to forbidden investment practices are not contravened; (c) ensuring that the limitations and prohibitions imposed under this Regulation with respect to the investment of the funds of the scheme in restricted investments are complied with; (d) ensuring that the requirements of sections 37(2), 51 and 52 and Schedule 1 with respect to permissible investments are complied with in relation to the scheme; (e) ensuring that the funds of the scheme and the scheme assets are, except as permitted by this Regulation, kept separate from those of the participating employers and of the approved trustee of the scheme and of the service providers and other persons appointed or engaged for the purposes of the scheme.(3) Internal control measures for achieving the control objectives of each registered scheme must be established for the scheme and must be maintained and complied with at all times while the scheme is registered. (4) Those internal control measures must include procedures for- (a) monitoring investments to ensure that the control objectives referred to in subsection (2)(b), (c) and (d) are achieved; and (b) monitoring the assets and liabilities of the scheme to ensure the objective referred to in subsection (2)(e) is achieved, so that the funds of the scheme and the scheme assets are kept separate from those of the participating employers, the trustee and any other persons (such as service providers); and (c) ensuring the accuracy of statements, returns and reports required to be lodged with the Authority.(5) The control objectives and internal control measures established and maintained for the scheme may be amended, and fresh control objectives or internal control measures may be substituted, as and when necessary. (6) This section is not required to be complied with during a financial period of an employer sponsored scheme if- (a) it has no more than 1000 members throughout the immediately preceding financial period of the scheme; or (b) is exempted by the Authority under subsection (7).(7) The Authority may grant an exemption for the purposes of subsection (6) if satisfied that- (a) for a substantial portion of the immediately preceding financial period of the scheme, the scheme had no more than 1000 members; or (b) the scheme will not have, or is unlikely to have, more than 1000 members during the current financial period of the scheme. Cap 485A s 40 Investment standards to be complied with (1) The funds of a registered scheme may be invested only- (a) in the investments permitted under Part V and Schedule 1; and (b) in accordance with that Part and that Schedule.(2) An investment manager appointed in relation to the scheme by the approved trustee of the scheme is required to comply with Part V and Schedule 1. Cap 485A s 41 Requirements with respect to particulars specified in application for registering industry scheme In the case of an industry scheme, the particulars of the scheme that were specified in the application under section 21A of the Ordinance and approved or modified by the Authority must be complied with after the scheme has been registered. Cap 485A s 42 Offence for approved trustee who fails to ensure compliance with certain requirements and standards An approved trustee of a registered scheme who fails to comply with section 38, 39 or 40 commits an offence and is liable on conviction to a fine at level 5. Cap 485A s 43 Approved trustee's general duties with respect to administration of scheme PART V FUNCTIONS OF APPROVED TRUSTEES The approved trustee of a registered scheme must perform the following duties with respect to the administration of the scheme- (a) the duty to exercise a level of care, skill, diligence and prudence that may reasonably be expected of a prudent person who is acting in a similar capacity and who is familiar with the operation of registered schemes; (b) the duty to make use of all relevant knowledge and skill that the trustee may be reasonably expected to have because of the trustee's business or occupation; (c) the duty to ensure that the funds of the scheme are invested in different investments so as to minimize the risk of losses of those funds, unless in particular circumstances it is prudent not to do so; (d) the duty to act in the interest of the scheme members and not in the trustee's own interest; (e) the duty to act in accordance with the governing rules of the scheme; (f) the duty to supervise and exercise proper control over all service providers appointed or engaged for the purposes of the scheme. Cap 485A s 44 Approved trustee to appoint investment manager (1) The approved trustee of a registered scheme must ensure that- (a) an investment manager is appointed to manage the investment of the funds of the scheme; and (b) the contract for the appointment of the investment manager complies with Schedule 2.(2) The trustee does not have to comply with subsection (1) in relation to a constituent fund of the scheme if- (a) the trustee has given an undertaking to the Authority to invest the accrued benefits of the constituent fund only in approved pooled investment fu