MR CHAN KIN-POR (in Cantonese): Deputy President, I speak in support of the Second Reading of the Occupational Retirement Schemes (Amendment) Bill 2019 (“the Bill”).
After the implementation of the Mandatory Provident Fund Schemes, Occupational Retirement Schemes (commonly known as “Provident Fund Schemes”) still continue to operate, so as to offer one more option for employers and employees. In general, employers and employees can enjoy tax deductions for their contributions to Occupational Retirement Schemes. However, the Government has recently discovered that some Occupational Retirement Schemes were used as collective investment schemes with open participation, rendering them into investment vehicles. This is obviously contrary to the original policy intent of the law, i.e. the scheme only allows persons with employer-employee relationships to participate. In fact, as Occupational Retirement Schemes are outside the regulatory ambit of the Securities and Futures Ordinance, if Occupational Retirement Schemes are misused as investment vehicles, it will definitely compromise the integrity of the regulation of investment products in Hong Kong and arouse concerns that such misuse of Occupational Retirement Schemes will affect the normal operation of the schemes and affect employees’ actual benefits. Therefore, the Bill does warrant support, and I will support it too. Thank you, Deputy President.