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Tens of 1000’s of Hongkongers who moved to the UK are being blocked from accessing as a lot as £2.2bn of pension property, as activists accuse town’s authorities of retaliating in opposition to these deemed “unpatriotic” following a political crackdown.
The figures, launched by UK advocacy group Hong Kong Watch on the eve of the primary go to to the UK by a ministerial-level Hong Kong official since 2019, display how greater than 90,000 persons are being “punished” for emigrating beneath the British Nationwide (Abroad) programme, the group stated.
“It’s a blanket ban on BN(O) holders accessing the property that’s theirs,” stated Sam Goodman, director of coverage and advocacy at Hong Kong Watch, calling the transfer a “punishment for these taking the step to the UK”.
Within the wake of a crackdown on pro-democracy protests in Hong Kong in 2019, the UK provided tens of millions of town’s residents a path to citizenship beneath the BN(O) programme — a transfer that angered Chinese language authorities.
In response, the Hong Kong authorities in 2021 successfully prevented pension funds within the metropolis from instantly paying out to residents who left under the BN(O) scheme. The federal government stated people couldn’t use emigration beneath the UK supply as a legitimate cause for early withdrawal of the funds.
Numerous banks, insurers and monetary establishments supply pension funds beneath the Hong Kong authorities’s Necessary Provident Fund retirement saving system, together with Manulife, Invesco, Constancy and HSBC. Typically, former Hong Kong residents could reclaim their pension funds in the event that they transfer overseas completely.
Hong Kong Watch calculated the £2.2bn determine based mostly on the common MPF account stability of HK$224,000 ($28,500), which it multiplied by the approximate variety of BN(O) visa holders who are usually not dependants or kids — about 96,000 individuals based mostly on the variety of functions between January 2021 and December 2022. In complete, there have been about 160,700 functions in that interval.
“If 30 per cent maintain an MPF with HSBC as a trustee, then HSBC is denying entry to . . . [assets] which belong to BN(O) visa holders who’ve completely left the territory to start out a brand new life within the UK,” Hong Kong Watch stated.
In response to a request for remark, the Hong Kong authorities reiterated that MPF scheme members “can’t depend on BN(O) passport nor its related visa as proof in making use of for early withdrawal of MPF”.
HSBC stated it was obliged to adjust to Hong Kong authorities necessities. “Like all banks, we’ve got to obey the legislation, and the directions of the regulators, in each area through which we function,” the financial institution stated.
Constancy stated: “As one of many largest MPF suppliers in Hong Kong, we’ve got a complete withdrawal protocol from scheme trustee that aligns with [the Mandatory Provident Fund Schemes Authority’s] tips.” Manulife and Invesco didn’t reply to requests for remark.
Attorneys stated Hong Kong BN(O) holders ought to be entitled to entry their funds after gaining full UK citizenship, which they will qualify for after 5 years, because the MPF authority should accept a British passport as proof of everlasting relocation.
“BN(O) passport holders . . . may have to attend till they’ve obtained a British citizen passport or attained the retirement age of 65 to use to withdraw their MPF advantages,” stated Kenneth Leung, a Hong Kong lawyer specialising in pensions.
The MPF company declined to make clear how it will honour former residents’ withdrawal requests.
“If scheme members try and withdraw their MPF early on the grounds of everlasting departure from Hong Kong however the MPF trustees are usually not glad with the proof, the MPF will stay within the scheme members’ MPF accounts,” the authority stated.
Monetary companies secretary Christopher Hui’s proposed trip to the UK this month would be the first because the UK accused China of violating the Sino-British Joint Declaration, the 1984 treaty beneath which Hong Kong was transferred to Chinese language management.
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