Regulating Licensees
Licensees are required to comply with certain requirements set out in the Property Management Services Ordinance (PMSO) and the Property Management Services (Licensing and Other Matters) Regulation. If a licensee fails to comply with a requirement, he may commit a disciplinary offence.
If the Property Management Services Authority (PMSA) has reasonable cause to suspect that a licensee has committed a disciplinary offence or the licensee no longer meets any of the prescribed criteria for holding the licence, the PMSA may conduct an investigation.
If, at the conclusion of an investigation, the PMSA is satisfied that there is evidence that tends to establish the matter concerned, the PMSA may decide that a hearing be conducted. If, at the conclusion of a hearing, the PMSA is satisfied that the matter is established, it may discipline the licensee.
Disciplinary Offences
Under section 4 of the Property Management Services Ordinance (PMSO), a licensee commits a disciplinary offence if:-
- the licensee commits misconduct or neglect in a professional respect;
- the licensee contravenes a condition imposed on the licensee’s licenceNote;
- the licensee contravenes a requirement in the PMSO that is applicable to the licensee;
-
the licensee, without reasonable excuse, fails to-
a. comply with a requirement of a notice issued by an investigator under section 21(2); or
b. comply with a summons in connection with a disciplinary or appeal hearing under section 25(1)(b) or 37(1)(b) respectively; - the court determines that the licensee has contravened a requirement in the Building Management Ordinance (Cap. 344) or a deed of mutual covenant that is applicable to the licensee; or
-
the licensee is convicted in Hong Kong or elsewhere of a criminal offence that-
a. may bring the profession of property management services into disrepute; and
b. is punishable with imprisonment (whether or not the licensee was sentenced to imprisonment).
Under section 5 of the PMSO, the Property Management Services Authority (PMSA) may issue codes of conduct containing any practical guidance that it considers appropriate for the purposes of section 4.
Investigation may be conducted by the PMSA if it has reasonable ground to suspect that a licensee has committed a disciplinary offence or the licensee no longer meets any of the prescribed criteria for holding the licence.
Note: Under the PMSO, the PMSA may attach conditions to a PMC licence and PMP licence.
Requirements Applicable to Licensees
Licensees are required to comply with certain requirements set out in the Property Management Services Ordinance and the Property Management Services (Licensing and Related Matters) Regulation (LRMR). If a licensee fails to comply with a requirement, he may commit a disciplinary offence and may be subject to investigation and disciplinary action by the Property Management Services Authority (PMSA).
The requirements under the regime include the following:
- conditions imposed on licence;
- provision of certain information by property management companies (PMCs) to clients; and
- notifying the PMSA of changes of prescribed matters.
The prescribed conditions that may be imposed on a property management company licence and property management practitioner licence are set out in the LRMR.
Information that must be provided by PMCs to their clients concerns:
- conflict of interests;
- contracts entered into for or on behalf of clients;
- documents relating to management of property as may be specified by the PMSA from time to time.
Codes of Conduct
Section 4 of the Property Management Services Ordinance (PMSO) sets out the conduct and circumstances amounting to a disciplinary offence and, under section 5, the Property Management Services Authority (PMSA) may issue codes of conduct containing any practical guidance that it considers appropriate for the purposes of section 4.
Section 5 also stipulates that a licensee does not incur a civil or criminal liability only because the licensee has contravened a provision of the codes of conduct. However, in any proceedings (whether disciplinary, civil or criminal), if the PMSA, the disciplinary committee or the court is satisfied that a provision of the codes of conduct is relevant to determining a matter that is in issue in the proceedings, then the codes of conduct are admissible in evidence in the proceedings; and proof that a licensee contravened or did not contravene the provision may be relied on as tending to establish or negate that matter.
From time to time, the PMSA will issue codes of conduct and, where appropriate, best practice guides, to address concerns of the public and to raise competence and professionalism of the property management industry. The PMSA has issued or will consider issuing codes of conduct covering the following areas:
No. | Subject | Codes of Conduct | Best Practice Guides | FAQ |
---|---|---|---|---|
1. | General Code of Conduct | Download document | (coming soon) | Download document |
2. | Complaint Handling Mechanism of Property Management Companies | Download document | Download document | Download document |
3. | Effective Control over Property Management Business by Property Management Companies | Download document | Download document | (coming soon) |
4. | Handling Money Received for Clients | (coming soon) | (coming soon) | (coming soon) |
5. | Obligations after the Appointment of a Property Management Company is Terminated | (coming soon) | (coming soon) | (coming soon) |
6. | Handling Instrument of Appointing a Proxy Regarding Meetings of Corporation / Owners | (coming soon) | (coming soon) | (coming soon) |
7. | Provision of Prescribed Information and Financial Documents to Clients | (coming soon) | (coming soon) | (coming soon) |
8. | Anti-corruption | (coming soon) | (coming soon) | (coming soon) |
9. | Handling Emergencies | (coming soon) | (coming soon) | (coming soon) |
10. | Personal Data Protection | (coming soon) | (coming soon) | (coming soon) |
11. | Managing Scaffolding Works to be Carried Out at a Property | (coming soon) | (coming soon) | (coming soon) |
12. | Carrying Out Procurement for Clients | (coming soon) | (coming soon) | (coming soon) |
13. | Managing Distribution of Promotional Materials at a Property | (coming soon) | (coming soon) | (coming soon) |
Complaints Against Licensees
Complaints may be lodged against a licensee who is suspected to have committed a disciplinary offence or no longer meets any of the prescribed criteria for holding the licence (“non-compliance”). The Property Management Services Authority (PMSA) may conduct an investigation if it has reasonable cause to suspect that non-compliance has occurred.
A complaint may be lodged at the office of the PMSA (preferably by calling the PMSA in advance to arrange for a meeting) or in writing and sent to the PMSA by post, fax or email.
A complainant must provide his / her name, Hong Kong identity card number, correspondence address and telephone number so that the PMSA may contact him / her and, where required, issue a summons for appearing in disciplinary hearings to testify. A complainant should provide details of the complaint, including the date of the incident, the address of the relevant property, and the identity of the relevant person(s) and property management company. To assist the PMSA to conduct a preliminary assessment on the complaint, the complainant is encouraged to complete the Complaint Form. For other matters to which a complainant should pay attention, please read the Notice to Complainant.
The PMSA will conduct a preliminary assessment of the information provided by a complainant. If the matter falls within the jurisdiction of the PMSA, an investigator appointed by the PMSA will conduct an investigation. The PMSA will, within 10 working days after the receipt of a complaint, invite the complainant to attend at the PMSA office to give a detailed statement.
The PMSA shall treat all the information received in strict confidence (regardless of whether it is provided by the complainant, complainee or witness). However, if the investigation so warrants and for fairness sake, the PMSA may, with the consent of the complainant, disclose the identity of the complainant and will inform the complainee and the witness, if any, of the details of the complaint. The investigator will set out, in writing, the complaint against the complainee and will request the complainee to respond.
The PMSA may only handle a complaint in which the person was and acted as, at the time when the suspected non-compliance was committed, a licensee. In other words, if the complainee was not a licensee at the material time, the PMSA has no jurisdiction to investigate the matter. In addition, the PMSA may consider not conducting an investigation if —
- The complaint is misconceived or lacking in substance (for example, the complaint is based on mere speculation);
- The matter complained of is outside the jurisdiction of the PMSA (for example, the matter of complaint is a mere contractual dispute);
- The non-compliance has occurred for more than 12 months, and the complainant fails to give a reasonable explanation note 1for the delay in lodging the complaint;
- The complainant is not willing to testify in the disciplinary hearing and/or refuses to complete the Complaint Form and/or refuses to attend a meeting to give a detailed statement;
- The matter complained of is also the subject of legal proceedings note 2; or
- The complaint is lodged anonymously note 3.
Note 1: A reasonable explanation may include the complainant being not in Hong Kong at the material time.
Note 2: The PMSA may consider deferring an investigation pending the outcome of legal proceedings.
Note 3: If a complaint is lodged anonymously, the PMSA may decide whether or not to handle the complaint and, in any event, will not inform the person lodging the complaint of its decision, the progress and result of the investigation.
Disciplinary Proceedings
The Property Management Services Authority (PMSA) may conduct an investigation if it has reasonable ground to suspect that a licensee has committed a disciplinary offence or the licensee no longer meets any of the prescribed criteria for holding the licence. If, at the conclusion of an investigation, the PMSA is satisfied that there is evidence that tends to establish the matter concerned, the PMSA may decide that a hearing be conducted. If, at the conclusion of a hearing, the PMSA is satisfied that the matter is established, it may discipline the licensee. Under the Property Management Services Ordinance, the PMSA may make any of the following orders against the licensee:
- verbal warning or written reprimand;
- fine;
- imposing a condition on the licence;
- varying a condition of the licence;
- suspending the licence; or
- revoking the licence.
Disciplinary records are set out in the register which is accessible to the public.
A person aggrieved by an order made by the PMSA may lodge an appeal against the order. The appeal will be heard by an appeal tribunal composed of members of the Appeal Panel which is appointed by the Secretary for Home Affairs. An appeal tribunal may confirm, vary or reverse any decision, finding or order to which the appeal relates.