China Is Blocking Fleeing Hong Kongers From Getting Their Retirement Money
⋯⋯⋯⋯A 37-year-old real estate professional who participated in Hong Kong’s unprecedented street protests in 2019 said his request to access his funds in the city’s Mandatory Provident Fund (MPF) had been repeatedly rejected even after he resubmitted his application with his British residency permit.
Struggling to find work in London in the middle of the Covid-19 lockdown, the lack of access to the money has deprived him of a crucial cushion — he says his MPF money with Manulife would be equivalent to more than a year and half’s rent.
Manulife said it follows industry practices and regulatory requirements when processing applications.
One couple who moved to the U.K. in April have about HK$400,000 ($51,350) stuck in two retirement accounts in Hong Kong. Initially, HSBC staff accepted their documents and told them to expect approval in three weeks. Then the company asked for more documents, including a housing lease in the U.K., along with electricity and water bills. Despite providing this, HSBC didn’t approve their withdrawal, they said.
“As with all MPF service providers, we follow the regulator’s requirements for processing applications related to early withdrawal of accrued benefits by MPF scheme members,” HSBC said in a statement.
London Rush
An accountant in her 30s, now in London, said she has more than HK$500,000 worth of funds that are stuck, mostly held by Principal Trust Co. (Asia) and AIA. In May, she applied to withdraw her savings from Principal, but the firm rejected her request, while AIA is yet to respond to a similar request.
Spokespeople for Principal and AIA both said they process requests in accordance with the MPF regulations. Sun Life directed questions to the MPF’s March guidance, which said that members “cannot rely on BN(O) passport or its associated visa as evidence in support of an application for early withdrawal of MPF.”
Bloomberg couldn't independently verify the details provided by those trying to withdraw their money.
⋯⋯Those unable to get their money have few places to turn. It would be “very difficult” for claimants to sue the trustee as it’s complying with its statutory obligations, according to Duncan Abate, partner at law firm Mayer Brown.
If claimants can show that they have the right to reside in the U.K., independent of the BN(O) — such as receiving full British citizenship after six years — then they may be able to claim their MPF funds, Abate said.
That’s what the Hong Kongers that Bloomberg spoke to in the U.K. are holding out for, but they also wonder if China will change the rules again and whether they’ll ever be able to get hold of their assets.
The Chinese government didn’t comment on the specifics of the story but said in an email the U.K. had “blatantly violated its pledges by changing BN(O) policy. It's an attempt to interfere in Hong Kong's affairs and China's internal affairs.”
Both the Hong Kong government and MPF wouldn’t comment on whether BN(O) holders who receive British citizenship would be able to access their money under the early release scheme. The Hong Kong government declined to comment on any aspect of this story.
https://www.bloomberg.com/news/articles/2021-08-19/china-s-hong-kong-crackdown-billions-in-retirement-money-blocked-for-uk-emigres