WORKERS CAPITAL

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.”