MPF ban on BN(O) withdrawals actually works in holders’ favour
- Migrants should thank powers that be for helping them to invest and diversify with a pot of gold, which waits to eventually be reclaimed
Anti-China hawks in Britain and the United States have to keep stirring the pot to stay in the news. So, on the third anniversary of the Beijing-imposed national security law in Hong Kong and a day before the 26th anniversary of the 1997 handover, they sent a letter to HSBC blasting it for refusing to release early the pension savings of British National (Overseas) passport holders starting a new life in the UK.
It’s not the first time they have made a fuss over the issue, to no one’s benefit other than their own.
It’s not clear why Hong Kong’s immigration and pension fund policies are any of the business of Mike Gallagher, chairman of the US Congress Select Committee on China. Maybe Chinese lawmakers should criticise cruel and unusual immigration policies and the treatment of refugees on the US southern border. No?
However, Alicia Kearns, chairwoman of the British parliament’s Foreign Affairs Select Committee might have a better case. HSBC is headquartered in the UK, and the Sino-British Joint Declaration gives her position some diplomatic legitimacy.
I am not sure, though, why they keep picking on HSBC. While I have no love for the bank, it represents just two out of 15 approved trustees under the Mandatory Provident Fund retirement scheme in Hong Kong.
Other trustees with foreign business links are Manulife, AIA, and Standard Chartered. And what about those Chinese banks and fund managers?
Well, I suppose HSBC makes an easy target for people like Gallagher and Kearns, who has claimed, without evidence, that the Chinese government has threatened the safety of her family and wanted extra police protection.
All MPF trustees and fund providers must follow Hong Kong law and financial regulations.
Abolish MPF raids by Hong Kong bosses immediately
In 2021 the Mandatory Provident Fund Schemes Authority issued a statement, “BN(O) passports are no longer recognised as any form of proof of identity in Hong Kong. Thus, scheme members cannot rely on BN(O) passport or its associated visa as evidence in support of an application for early withdrawal of MPF.
“The MPFA pointed out that MPF trustees have the duty to observe Hong Kong laws when handling the administrative matters of MPF schemes.”
I don’t think those Western politicians know or care what they are talking about. In the end, the MPF policy on withdrawal will work in the favour of most BN(O) holders. Why?
It’s increasingly clear the BN(O) scheme isn’t all it sets out to be. Also known in Cantonese as the “5 + 1” – because you supposedly can apply for permanent residency after staying in Britain for five years – you will get no preferences in the process when you apply.
You will be judged essentially by the same criteria as any foreigner who applies for permanent residency through conventional channels. Some will be successful, others not. But your BN(O) status will offer no real advantages.
For those who are unsuccessful, most will have to return to Hong Kong. If so, they can resume their MPF and start contributing again, if they work. If they really will retire, well, there is nothing stopping them from getting all their contributions back. And from the interests and investment gains, those 5+1 years would have expanded their local pensions, something many BN(O)ers probably don’t have while staying in the UK.
As for those who successfully secure their permanent residency or citizenship in the UK after six or more years, well, there are legitimate legal documents that you can use to get all your MPF savings back.
That’s also why Hong Kong people who have emigrated to other countries using normal channels and getting their permanent residency or foreign passports have no trouble withdrawing from their MPF accounts.
Gallagher and Kearns are talking nonsense. BN(O) migrants should thank the Hong Kong government, MPF administrators and fund managers for helping them invest and diversify, all the while with a pot of gold waiting for them eventually to reclaim.
