Chapter 4: MPF Trustees

MPF Intermediaries Examination · Chapter 4: MPF Trustees

Q1 Free

Under trust law, what is the legal position of an MPF scheme trustee in respect of the trust assets?

A. The trustee is the beneficial owner and may freely dispose of the assets.
B. The trustee is the registered owner but not the beneficial owner.
C. The trustee is wholly unconnected with the assets and only handles administration.
D. The trustee and beneficiaries are joint beneficial owners of the assets.

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Correct Answer: B

Per Study Notes 4.1.1, a trustee is the registered owner of trust property but not the beneficial owner. The trustee merely holds the assets on trust and cannot dispose of or benefit from them except as permitted by the trust deed.
Option A is wrong because the trustee is not the beneficial owner. Options C and D contradict basic trust-law concepts.

Q2 Free

Which of the following is NOT a fiduciary duty of an MPF trustee?

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Correct Answer: C

Study Notes 4.1.2 expressly requires trustees to act in the interest of beneficiaries, not their own. Option C violates this core fiduciary principle.
The other three options correspond to items (a), (e) and (d) of 4.1.2 respectively.

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