Former Hong Kong district councillor arrested over unlicensed pension fund sales
Hong Kong Free Press
Former Hong Kong district councillor Derek Chu has been arrested on suspicion of promoting pension fund plans without a valid intermediary license.
The police force told HKFP that the Sham Shui Po District’s crime unit arrested a 46-year-old man in Sha Tin on Tuesday on suspicion of breaching the Mandatory Provident Fund (MPF) Schemes Ordinance.
“By court order, authorities conducted searches at the arrested person’s residence and office premises, seizing relevant documents and electronic communication devices,” a police spokesperson said.
The police added that the man was currently detained for investigation, and that further arrests were not ruled out.
Citing sources, local media outlet Ming Pao reported earlier on Tuesday morning that Chu was arrested on suspicion of promoting pension fund schemes without a valid license.
Other outlets including Sing Tao and government-owned broadcaster RTHK cited sources saying the force would carry out investigations in Kwun Tong, Mong Kok, and Tai Kok Tsui.
Local media outlets published photos of him entering a Kwun Tong office building with police officers at around noon on Tuesday.
In a reply to HKFP, the Mandatory Provident Fund Schemes Authority said people must register with the authority as an MPF intermediary before they can promote or sell pension fund schemes, and that it is a criminal offense to do so without a valid license.
A former district councillor Yau Tsim Mong district councillor, Chu was ousted from the District Council in September 2021 after his pledge of allegiance to the government was deemed invalid.
The former councillor distributed electronic candles on June 4 last year to mark the anniversary of the Tiananmen Square crackdown in 1989. He runs the online shopping platform AsOne, the proceeds of which are used to support jailed protesters.
Ahead of the crackdown anniversary this year, a private screening of a documentary organised by Chu was cancelled after police questioned him over his plans. The documentary, called To Be Continued, traces the history and culture of the State Theatre building in North Point, and its founder Harry Odell.
Plans to overhaul the District Council elections were unveiled in May 2023 to ensure only “patriots” are elected, following a pro-democracy landslide at the last polls in 2019. The number of seats chosen democratically by the public will be slashed to around 20 per cent, with the rest chosen by the city’s leader, government-appointed committees and officials.
Constituency boundaries will be redrawn and each local council will be chaired by a government official, similar to colonial-era arrangements. All candidates will undergo national security vetting to ensure patriotism.
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