The Codes of Conduct entitled “Handling Payment for or Arranging Payment to be Made by Clients” and “Provision of Prescribed Information and Financial Documents to Clients” issued by the Property Management Services Authority (PMSA) pursuant to Section 5(1) of the Property Management Services Ordinance (Cap. 626) (PMSO) will be gazetted and take effect tomorrow.
Under the property management (PM) industry licensing regime, all PMCs providing properties (subject to deeds of mutual covenant) in Hong Kong with more than one category of prescribed PM services, as well as PMPs designated for managerial or supervisory role in such PMCs for providing PM services, must hold valid PM licence starting from 1 August 2023 in order to continue to provide PM services in accordance with the PMSO.
The PMSA Chairperson Mr Tony TSE said, “As the statutory and regulatory body of the PM industry, the PMSA will continue to adopt a three-pronged approach by implementing the licensing regime, setting standards for integrity and encouraging a culture of learning through collaboration with different Government departments, public bodies and industry associations so as to galvanise efforts in enhancing the professionalism of the PM industry in order to provide the public with PM services of higher professional standard and quality.”
In addition to the “Handling Payment for or Arranging Payment to be Made by Clients” and “Provision of Prescribed Information and Financial Documents to Clients” Codes of Conduct which will be gazetted and take effect tomorrow, the PMSA has also prepared the respective Best Practice Guides in order to allow PMCs and PMPs licensees to comply with the guidelines stipulated in the two Codes of Conduct more effectively and professionally.
“Handling Payment for or Arranging Payment to be Made by Clients”
This Code of Conduct stipulates that a licensed PMC has to establish a proper mechanism to handle payment for its clients or arrange payment to be made by its clients related to property management services. The Code covers the following aspects:
- Establish proper mechanism for handling payment for clients or arranging payment to be made by clients;
- Settle payment timely;
- Verify information and documents relating to payment;
- Open bank account;
- Set authorization for payment;
- Keep cheque books and related items properly;
- Confirm receipt of payment;
- Keep record; and
- Check record.
The PMSA formulated this Code of Conduct and its respective Best Practice Guide in consultation with the property management industry, owners’ organisations, the Consumer Council, the Home Affairs Department, the Hong Kong Institute of Certified Public Accountants and the Independent Commission Against Corruption (ICAC). The feedback collected from the consultation has been appropriately reflected in the Code and Guide.
The PMSA Chairperson Mr Tony TSE emphasized, “The PMSA is highly concerned about a recent case of suspected embezzlement of the funds of an owners’ corporation, and has promptly prepared the ‘Handling Payment for or Arranging Payment to be Made by Clients’ Code of Conduct and its respective Best Practice Guide in order to provide PMCs and PMPs with practical guidelines on using residents’ money to pay or arrange to make payments for PM services. The aforementioned Code and Guide as well as the ‘Handling Moneys Received on behalf of Clients by Property Management Companies’ Code of Conduct promulgated earlier complement each other to offer comprehensive guidelines for PMCs and PMPs on properly handling the moneys of clients with enhanced transparency in the management of PM finances in order to avoid disputes with and complaints from the residents as well as to minimise the risk of embezzlement.”
“Provision of Prescribed Information and Financial Document to Clients” Code of Conduct
This Code of Conduct stipulates that a licensed PMC has to provide its clients with the prescribed information including information concerning conflict of interests between the PMC and its clients, information in contracts relating to the management of the concerned property, and information in other documents relating to PM that the PMSA may from time to time specify. The Code covers the following aspects:
- Provide information concerning conflict of interests;
- Provide information concerning contracts relating to PM;
- Provide information concerning other documents relating to the management of the property that the PMSA may from time to time specify;
- Inspect financial documents and provide copies; and
- Inspect other financial documents.
This Code of Conduct and its respective Guide have appropriately reflected the feedback collected from the consultation with different stakeholders including the PM industry, owners’ organisations, the Consumer Council and the ICAC, etc.
The PMSA Chairperson Mr Tony TSE said, “PMCs often enter into contracts with third-party service providers for the provision of PM services. Formulating the relevant Code and Guide aims to facilitate communication and understanding between the residents and PMCs, and enable the residents to be better informed about PM services provided for appropriate follow-up action to be taken.”
The two Codes of Conduct and Best Practice Guides can be downloaded from the following PMSA webpage:
https://www.pmsa.org.hk/en/regulatory/regulating-licensees#reg-04
The PMSA has already issued a total of 8 Codes of Conduct and the relevant Best Practice Guides, including “General Code of Conduct”, “Complaint Handling Mechanism of Property Management Companies”, “Effective Control over Property Management Business by Property Management Companies”, “Handling Moneys Received on behalf of Clients by Property Management Companies”, “Obligations of Property Management Companies regarding the Ending of their Appointment”, “Prevention of Corruption”, “Prescribed Conditions on Licences” and “Protection on Personal Data” in order to enhance the professionalism of the PM industry.
The PMSA will continue to issue other Codes of Conduct and Best Practice Guides timely, covering different PM areas in order to provide guidance to the industry, including but not limited to the following:
- Carrying out Procurement for Clients and Prevention of Bid-rigging;
- Prevention of Corruption – Financial Management;
- Prevention of Corruption – Monitoring Outsourced Property Management Services;
- Prevention of Corruption – Staff Recruitment and Management;
- Handling Emergencies;
- Scaffolding Works to be Carried Out at Property;
- Handling Instrument of Appointing a Proxy; and
- Mechanism of Distribution of Promotional Materials at Property
The PMSA also works with different Government departments, public bodies and industry associations to co-organise Continuous Professional Development seminars for the PM industry, with a view to strengthening the knowledge and skills of industry practitioners for enhancement in professionalism and competitiveness, as well as to fostering a culture of continuous learning among the industry practitioners.
Ends/Thursday, 20 January 2022
Issued at HKT 15:00
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