Guidance Note on Conducting Sales by Unsolicited Calls

The Mandatory Provident Fund Schemes Authority (MPFA) has issued another Circular (SU/CCO/2023/002) in relation to firms and individuals engaged in the distribution of Mandatory Provident Fund (MPF) shares, thereby utilizing telemarketing. The circular includes a so-called „Guidance Note on Conducting Sales by Unsolicited Calls“ which stipulates some basic requirements for intermediaries to comply with when making unsolicited calls (by the client unauthorized calls) to potentially new customers. The guidance note, which will apply from September 1, 2023, is briefly summarized below. It shall be noted in this context that the MPFA will closely review the practices of principle intermediaries (PIs) as to their compliance with the note.
##### Key requirements pertaining to telemarketing of MPF shares:
– PIs should designate a telephone number under which it will make calls to potentially new customers which will be publicly available so as to enable a potential customer to verify the legitimacy of the call and its caller.
– PIs or their subsidiary intermediaries (SIs) need to state the purpose of their call at the beginning of the conversation. Additionally, they shall provide some basic information on themselves and their firms (name, MPF registration number, etc.). In case the potential customer seeks to know how the caller has obtained the contact details for making the call, such information MUST be disclosed.
– PIs should maintain a list of eligible staff members authorized to make such phone calls.
– To ensure appropriate oversight and monitoring of such calls, PIs need to designate specific phone lines for such telemarketing activities. In line with this requirement, PIs need to maintain adequate call logs and ensure that calls are recorded. The logs must be kept on record for at least two years.
– PIs must develop standards and guidelines for the conduct of callers and must provide adequate training to such. Additionally, they shall prepare a „template“ for performing the call so as to facilitate compliance with the conduct requirements.
– When engaging third-parties for telemarketing purposes, the intermediary must have adequate policies and procedures in place to monitor the conduct of such third-parties.
– Intermediaries must duly inform the public, e.g. via press statements, if they have reason to believe that someone is or has been impersonating their firms or registered subsidiary intermediaries.