Updated briefing: Canadian financial companies blocking Hong Kongers’ access to an estimated C$2 billion in retirement savings

Despite testifying in the Canadian Parliament one week ago on the withholding of Mandatory Provident Fund (MPF) savings from Hong Kongers who have permanently left Hong Kong, Manulife and Sun Life continue to prevent Hong Kongers from accessing an estimated C$2 billion worth of their hard-earned retirement savings.

The funds are held as part of Hong Kong’s mandatory pension scheme, which are held in trust by various financial institutions, including the Canadian financial companies, as part of the MPF system. Manulife alone holds almost 28% of the MPF market with over C$56 billion in assets under management. Sun Life manages around C$23 billion. Management fees for the Manulife MPF funds vary between 0.75% and 1.98%. Sun Life’s vary from 0.77% to 2.13%.

Ordinarily, anyone permanently leaving Hong Kong is entitled to withdraw their MPF savings. However, a unilateral declaration from the Hong Kong government in response to the opening of the BNO visa scheme in January 2021 to no longer recognise the BNO identity has blocked access for hundreds of thousands of Hong Kongers. 

This retaliatory action was conducted by fiat with no laws or regulations being changed in Hong Kong regarding the operation of the Mandatory Provident Fund. Under the MPF trust deed, trustees like Manulife and Sun Life have a legal obligation to release the savings to beneficiaries who can provide evidence of their right to reside in a foreign country, which includes a BNO passport or visa.

However, Hong Kong Watch and Members of the Canadian Parliament continue to see several letters from Manulife and Sun Life to Hong Kongers, rejecting their early MPF withdrawal claims based on guidance from the Mandatory Provident Fund Authority which supervises the provision of MPF schemes and does not consider the BNO passport or visa a valid form of identification per the Hong Kong government’s declaration. This includes the case of a Hong Konger in Canada who had obtained Canadian permanent residency and applied to withdraw their MPF from Manulife, but was denied simply because they arrived in Canada with their BNO passport.

During the hearing in the Canadian Parliament last week, Laura Hewitt, Sun Life’s Head of Global Government Affairs and Public Policy, said, “Sun Life does not decline Canadian permanent residents or citizens who have permanently left Hong Kong from withdrawing their MPF funds.”

Maryscott Greenwood, Manulife’s Global Head of Government Relations for Canada, said, “We do not decline to process an application for reasons of the BNO visa or passport.” 

Hong Kong Watch continues to actively engage in discussions with these MPF trustees as well as cross-department governmental and parliamentary representatives to ensure that this is the case, and continues to call for the release of Hong Kongers’ rightful access to their own savings.

The briefing also recommends that Immigration, Refugees and Citizenship Canada (IRCC) should change the designation of BNO passport and visa holders from ‘GBN’ to ‘CHN’ or ‘HKG’ on Canadian permanent residency cards to allow Hong Kongers to access their MPF savings and to prevent further retaliation from the Hong Kong government.

The full briefing can be read here.

Megan Khoo, Research and Policy Advisor of Hong Kong Watch and author of the briefing, said:

“We are grateful that Manulife and Sun Life testified before the Canadian Parliament last week, but carefully-worded answers without follow-up actions not only result in Hong Kongers continuing to be denied access to their savings but also lend a hand to transnational repression against the Hong Kong community. There continues to be an open case in which a Hong Konger with permanent residency in Canada is being denied access to their MPF. This is not acceptable. Hong Kongers should be able to flee from increasing persecution in Hong Kong to Canada, without having to endure further forms of persecution that mentally and financially threaten their new lives.”

香港監察最新簡報發現宏利、永明扣起港人約20億加元強積金

宏利（Manulife）和永明金融（Sun Life）一週前就永久離港港人被扣押強積金（MPF）儲蓄事宜，在加拿大國會作證。雖然如此，香港監察最新簡報發現，兩家公司繼續阻撓香港人提取總值料達20億加元的血汗退休儲蓄。

單是宏利就佔了強積金市場的近28%，資產管理規模高達超過560億加元，而永明金融則管理約230億加元資產。宏利強積金基金的管理費介乎0.75%至1.98%之間，永明金融的則介乎0.77%至2.13%。

任何人擬永久離開香港，一般有權提取強積金儲蓄。然而，香港政府因應英國政府在2021年1月開放BNO簽證計劃，單方面宣布不再承認BNO身分，導致數十萬港人無法提取強積金。

肇事者聽命展開這種報復行動，有關強積金運作的香港法律或法規並沒有改變。根據強積金信託契約，宏利和永明金融等受託人有法律義務發放強積金儲蓄予能夠提供外國居留權證據（包括BNO護照或簽證）的受益人。

然而，香港監察及加拿大國會議員繼續查看若干宏利和永明金融致港人的信函，發現兩家公司按照香港政府向強制性公積金計劃管理局（積金局）發出的指引，拒絕港人提早提取強積金的申請。當中包括一名已獲加拿大永久居留權在加港人的個案，事主向宏利申請提取強積金，但僅因持BNO護照來加而被拒絕。

香港監察會繼續積極與這些強積金受託人和跨部門政府及國會代表展開討論，確保情況屬實，並繼續呼籲讓香港人正當提取自己的儲蓄。

請在此處閱覽簡報全文。

香港監察研究及政策顧問、簡報作者Megan Khoo表示：

「我們感謝宏利和永明金融上週在加拿大國會作證，但措辭謹慎卻缺乏跟進行動的答覆不但使香港人繼續無法取回儲蓄，而且助長針對香港社群的跨國鎮壓。持加拿大永居權港人被拒絕提取MPF的個案仍然發生，情況不能接受。香港人理應能夠赴加逃離香港日趨嚴重的迫害，而不必承受在精神和財政上威脅新生活的進一步迫害。」