Regulating Licensees

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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 licence^Note;
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:

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:

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:

Best Practice Guide on Complaint Handling Mechanism of Property Management Companies

Best Practice Guide on Effective Control over Property Management Business by Property Management Companies

Handling money received for clients;
Obligations after the appointment of a property management company is terminated;
Handling instrument of appointing a proxy regarding meetings of corporation / owners;
Provision of prescribed information and financial documents to clients;
Anti-corruption;
Handling emergencies;
Personal data protection;
Managing scaffolding works to be carried out at a property;
Carrying out procurement for clients; and
Managing distribution of promotional materials at a property.

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 1}for 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.

Notification of Changes in Prescribed Matters

Licensees are required to notify the Property Management Services Authority (PMSA) in writing of any change in the prescribed matters and in the prescribed manner. The prescribed matters are:

The particulars or information include:

Licensees are required to notify the PMSA within 31 days after the change takes place by using form specified by the PMSA and accompanied by the supporting documents specified by the PMSA (if applicable).

Examples of the application of the minimum manning ratios

The criteria for holding a property management company (PMC) licence are:

Criterion 1: The PMC must engage at least one licensed PMP (Tier 1) (whether part-time or full-time), who has effective control of the provision of property management services by the PMC; and

Criterion 2: The PMC must engage a number of full-time licensed PMPs that meets the minimum manning ratios specified by the PMSA.

The minimum manning ratios are:

Below are some examples of how the manning ratios are applied:

Example	Number of flats in the portfolio	The required number of full-time licensed PMPs engaged
		Tier 1	Tier 2	Total
A	0	0	0	0
B	1,500	1	1	2
C	1,501	1	2	3
D	3,000	1	2	3
E	3,001	2	3	5
F	5,900	2	4	6
G	20,000	7	14	21

In Example A, the PMC does not have any property in its portfolio. One reason could be that the PMC is newly established and has not entered into any management contract yet. Another reason could be that the PMC has outsourced all property management services to another licensed PMC (subcontractor) in which case the property in question is deemed to be in the portfolio of the subcontractor (more examples of outsourcing may be found here). In these cases, the PMC is not required to engage any licensed PMP, but for it to hold a PMC licence, it must still fulfil criterion 1 stated above.

If the licensed PMP (Tier 1) who fulfils criteria 1 is engaged on a full-time basis, then he or she may be included in the staff of full-time licensed PMPs for the purpose of meeting the minimum manning ratios.

A PMC may choose to engage an equal number of licensed PMP (Tier 1), instead of licensed PMP (Tier 2), to fulfill the minimum manning ratio for licensed PMP (Tier 2). For example, a PMC in Example D stated above may choose to engage a total of three licensed PMPs (Tier 1) instead of one licensed PMP (Tier 1) and two licensed PMPs (Tier 2).

“Flats” are defined as any premises in a building which are referred to in a deed of mutual covenant (DMC) whether described therein as a flat or by any other name and whether used as a dwelling, shop, factory, office or for any other purpose, of which the owner, as between himself and owners or occupiers of other parts of the same building, is entitled to the exclusive possession. Properties without a DMC are not to be included in the portfolio for the purpose of the minimum manning ratios. More information about how the number of flats should be calculated may be found here.

Complaint Handling Mechanism of Property Management Companies

Copy No.: C2/2021
Effective Date: 8 January 2021

Preamble

The following code of conduct (“Code”) is issued by the Property Management Services Authority pursuant to section 5 of the Property Management Services Ordinance (“PMSO”) and contains practical guidance for the purposes of section 4 of the PMSO (disciplinary offences). Although a licensee¹ does not incur a legal liability only because the licensee has contravened a provision of the Code, the Code is admissible in evidence in disciplinary hearings, and proof that a licensee contravened or did not contravene the relevant provision of the Code may be relied on as tending to establish or negate a matter that is in issue in the hearings.

Code

Complaint procedures and systems

A(1) A licensed property management company (“licensed PMC”) has to establish an effective complaint² handling mechanism (“mechanism”) for each property for which property management services (“PMSs”) are provided by it. A notice containing details of the mechanism shall be displayed in a prominent place in the property so as to enable the licensed PMC’s clients³ to know the details of the mechanism.

A(2) The notice mentioned in paragraph A(1) of the Code shall include the details of the mechanism and the following matters:

Ways of lodging a complaint;
Clients may obtain details of the mechanism⁴;
Personal information collection statement; and
Contact information of the person-in-charge (see paragraph B(1) of the Code).

A(3) The mechanism shall include the following elements:

Appointing a person-in-charge to supervise the handling of complaints;
Acknowledging receipt of and recording complaints;
Handling complaints promptly;
Notifying complainant of progress and result timely; and
Proper record-keeping and providing complaint information.

Appointing a person-in-charge to supervise the handling of complaints

B(1) A licensed PMC has to, for each property for which PMSs are provided by it, appoint a licensed PMP (“person-in-charge”) to supervise the handling of complaints and display the name, licence number and telephone number and/or email address of the person-in-charge in a prominent place in the property.

Acknowledging receipt of and recording complaints

C(1) Subject to paragraph E(3) of the Code, upon receipt of a complaint, the person-in-charge has to, as soon as reasonably practicable, arrange to assign a case number to the complaint, record its brief facts in the complaint register⁵, acknowledge receipt of the complaint and provide the case number to the complainant⁶.

C(2) The person-in-charge has to ensure that the following information is recorded in the complaint register: the name of the complainant (if provided); brief facts of the complaint and the date on which the complaint is recorded.

C(3) The person-in-charge has to check the complaint register regularly and rectify or arrange for rectification of any error found as soon as reasonably practicable.

Handling complaints promptly

D(1) Upon receipt of a complaint, a licensed PMC has to, as soon as reasonably practicable, carry out follow-up actions in accordance with the mechanism. However, a licensed PMC may not deal with an anonymous complaint⁷.

D(2) Subject to paragraph E(3) of the Code, if a licensed PMC is unable to handle the complaint (e.g. the person under complaint is not a staff member of the licensed PMC or the matter of complaint is outside the scope of the PMSs provided by the licensed PMC), the licensed PMC has to, with the consent of the complainant, refer the complaint to the relevant person or organization (e.g. management committee or owners’ committee) or advise the complainant to contact the relevant person or organization directly.

Notifying complainant of progress and result timely

E(1) Subject to paragraph E(3) of the Code, a licensed PMC has to timely notify the complainant the progress of follow-up action(s) taken.

E(2) Subject to paragraph E(3) of the Code, a licensed PMC has to, at the conclusion of follow-up action(s) taken, notify the complainant of the result, explain to the complainant the relevant follow-up action(s) taken (if any) and the reasons for reaching the conclusion (if applicable).

E(3) If the complainant is not a client or is an anonymous complainant, the licensed PMC is not required to contact or notify the complainant in accordance with the guidelines set out in paragraphs C(1), D(2), E(1) and E(2) of the Code. However, the licensed PMC still has to act in accordance with other guidelines of the Code.

Proper record-keeping and providing complaint information

F(1) A licensed PMC has to keep properly all relevant complaint information⁸ and documents for not less than 3 years commencing from the date of receipt of a complaint (no matter whether the complaint is established or not). A licensed PMC has to, upon written request (if any) by the owners’ organization, provide yearly statistical information on complaints (including the nature of complaints, the sub-total and total number of complaints) to the owners’ organisation.

Note

The term “licensee” means the holder of the following licence: a PMC licence; a PMP (Tier 1) licence; a PMP (Tier 2) licence; a provisional PMP (Tier 1) licence; or a provisional PMP (Tier 2) licence.
A licensed PMC is not required to follow the Code if it reasonably believes that a person has only made an enquiry or provided opinion or information, but has not made a complaint. A complaint may be lodged by a named or an anonymous person and such person includes a client, a user or a visitor of the relevant property. Complaints may be lodged through different ways, including complaint made verbally, by telephone, fax or email, etc. If a licensed PMC reasonably believes that the identity of a complainant cannot be ascertained through the information the complainant has provided, it may deal with the complaint as if it were an anonymous complaint.
The term “client” has the same meaning as defined in section 16 of the PMSO, i.e. “in relation to a property for which a licensed PMC provides property management services, means— (a) the owners’ organization of the property; and (b) the owners of the property who pay or are liable to pay the management expenses in respect of the services”. According to such definition, a tenant is not a client.
A licensed PMC may, after receipt of payment of a reasonable copying fee, provide a copy of the mechanism to a client.
The complaint register may be in electronic form. Licensed PMCs may set up separate complaint registers for different parts of the property (e.g. residential area, club house, etc.).
The guidelines on the requirement to contact a complainant apply to the situation where the complainant has provided contact information. If the complainant has not provided any contact information, the guidelines on contacting a complainant set out in paragraphs C(1), D(2), E(1) and E(2) of the Code do not apply.
Although a licensed PMC may not deal with an anonymous complaint, it is still required to record such a complaint in the complaint register in accordance with paragraph C(1) of the Code.
Relevant information includes records of verbal and telephone communication with the complainants.

Criteria for a specified academic qualification

Having an academic qualification specified by the Property Management Services Authority (PMSA) is one of the criteria for holding a property management practitioner licence. In determining whether to specify an academic qualification, the PMSA will consider the following factors:

Level and credits under the Hong Kong Qualifications Framework

In general, a degree or equivalent qualification must have a minimum of 150 QF Credits at QF Level 5 or above, while an associate degree, a diploma or an equivalent qualification, must have a minimum of 90 QF Credits at QF Level 4 or above.

Relevance to the property management profession

The PMSA uses the “Vocational Qualifications Pathway” (VQP) formulated by the Property Management Industry Training Advisory Committee as an assessment tool. In general, a learning program must cover at least four out of the seven functional areas and one of the areas covered must be “Law in Practice”. In addition, the competency requirements covered by the program must be those formulated for the post of “property manager” (for a PMP (Tier1) licence) or “property officer” (for a PMP (Tier 2) licence) under the VQP. A functional area is not considered covered by the program unless the number of competency requirements under that functional area meets or exceeds that specified by the PMSA as follows:

Competency requirements under VOP	Units of competency requirements for property manager	Units of competency requirements for property officer
1. Management of the property environment	Minimum 3	Minimum 3
2. Building repair and maintenance / improvement and enhancement	Minimum 2	Minimum 2
3. Property management services for owners, tenants and the community	Minimum 3	Minimum 3
4. Facility management	Minimum 2	Minimum 1
5. Law in practice	All required units	All required units
6. Finance and asset management	Minimum 1	Minimum 1
7. Human resources management	Minimum 2	Minimum 2

Making an application

Organisations or educational institutions wishing to have their learning programs so specified may make an application (form in Chinese only) with the PMSA.

Note: For details of the functional areas and units of competency of the competency requirements for the positions of property managers and property officers, please refer to: https://www.hkqf.gov.hk/pm/en/vqp/pathways/index.html。

General Code of Conduct

Code No.：C1/2020
Effective Date：7 August 2020

Preamble

The following code of conduct (Code) is issued by the Property Management Services Authority (PMSA) pursuant to section 5 of the Property Management Services Ordinance (PMSO) and contains practical guidance for the purposes of section 4 of the PMSO (disciplinary offence). Although a licensee does not incur a legal liability only because the licensee has contravened a provision of the Code, the Code is admissible in evidence in disciplinary hearings, and proof that a licensee contravened or did not contravene the relevant provision of the Code may be relied on as tending to establish or negate a matter that is in issue in the hearings.

Code

A licensee must not commit misconduct or neglect in a professional respect.
A licensee must provide services to the licensee’s clients with honesty, fidelity and integrity.
A licensee must, to the best of the licensee’s knowledge, provide accurate and relevant information or advice to the licensee’s clients to facilitate them to make informed judgments and decisions.
A licensee must establish proper procedures and systems to manage and supervise the property management services provided by the licensee.
A licensee must, in the course of the licensee’s practice, act in an impartial and just manner towards the licensee’s clients and any other parties concerned.
A licensee should avoid conflict of interests with the licensee’s clients. In the event of possible or potential conflict of interests (whether pecuniary or beneficial interest), a licensee must as soon as reasonably practicable disclose to the licensee’s clients in detail such interests.
A licensee must not maliciously injure the reputation, nor publicly disparage the practice, of other property management services providers.
A licensee must not do anything which may bring disrepute to the property management profession.
A licensee must, in the course of the licensee’s practice, comply with the laws of Hong Kong.

Note

The term “licensee” means the holder of a PMC licence; a PMP (Tier 1) licence; a PMP (Tier 2) licence; a provisional PMP (Tier 1) licence; or a provisional PMP (Tier 2) licence.
The term “client” has the same meaning as defined in section 16 of the PMSO. Section 16 of the PMSO provides: “client (客戶), in relation to a property for which a licensed PMC provides property management services, means— (a) the owners’ organization of the property; and (b) the owners of the property who pay or are liable to pay the management expenses in respect of the services.”
To determine whether a licensee has acted in accordance with paragraphs (3) and (4) of the Code, the PMSA will consider the terms of the relevant contract entered into between the licensee and the licensee’s client in order to determine the scope of property management services to be provided and the duties to be carried out by the licensee.

Effective Control over Property Management Business by Property Management Companies

Copy No.: C3/2021
Effective Date: 8 January 2021

Preamble

Code

Establishing mechanism for effective control over business

A(1) A licensed property management company (“licensed PMC”) has to establish an effective control mechanism (“mechanism”) for its business to provide property management services (“PMSs”). The mechanism shall include the following elements:

Establishing management team structure;
Setting out work guidelines;
Providing sufficient manpower;
Providing sufficient resources;
Providing appropriate training;
Effective monitoring;
Regular assessment;
Taking appropriate follow-up actions;
Keeping records; and
Supervising sub-contractors.

Establishing management team structure

B(1) A licensed PMC has to, with respect to each property for which PMSs are provided by it, establish a management team structure and prepare a management team operational chart to enable its employees to know the structure of the management team in order to facilitate carrying out duties and reporting work development.

Setting out work guidelines

C(1) A licensed PMC has to set out proper work procedures and clear guidelines for its employees to follow in the provision of PMSs. A licensed PMC has to review and/or update the relevant work procedures and guidelines regularly to ensure that they comply with operational requirements.

Providing sufficient manpower

D(1) A licensed PMC has to enter into an agreement with its client² with respect to the provision of PMSs and has to arrange sufficient manpower to provide PMSs according to the agreement.

Providing sufficient resources

E(1) A licensed PMC has to provide necessary and suitable material and equipment to its employees so as to enable them to provide PMSs effectively under safe working conditions.

Providing appropriate training

F(1) A licensed PMC has to provide appropriate training to its employees in the provision of PMSs in order to enable them to perform their duties in compliance with the relevant work procedures and guidelines. A licensed PMC has to strengthen training for employees who fail to perform their duties according to the relevant work procedures and guidelines.

Effective monitoring

G(1) A licensed PMC has to continuously and effectively monitor the work and conduct of its employees who provide PMSs and has to conduct regular review to ensure that its employees follow the relevant work procedures and guidelines.

Regular assessment

H(1) A licensed PMC has to periodically evaluate the work performance of its employees who provide PMSs in order to determine whether its employees have followed the relevant work procedures and guidelines and consider whether it is necessary to strengthen training or provide further guidance.

Taking appropriate follow-up actions

I(1) A licensed PMC has to take appropriate follow-up actions in respect of employees who fail to follow the relevant work procedures and guidelines.

Keeping records

J(1) A licensed PMC has to keep the relevant information and documents in relation to the implementation of the Code for not less than 3 years.

Supervising sub-contractors

K(1) If a licensed PMC sub-contracts all or part of its PMSs to a sub-contractor or a service provider, the licensed PMC has to supervise the sub-contractor or service provider suitably, no matter whether the sub-contractor or service provider is a licensee or not.

Note

The term “licensee” means the holder of the following licence: a PMC licence; a PMP (Tier 1) licence; a PMP (Tier 2) licence; a provisional PMP (Tier 1) licence; or a provisional PMP (Tier 2) licence.
The term “client” has the same meaning as defined in section 16 of the PMSO, i.e. “in relation to a property for which a licensed PMC provides property management services, means— (a) the owners’ organization of the property; and (b) the owners of the property who pay or are liable to pay the management expenses in respect of the services”. According to such definition, a tenant is not a client.

According to the PMSO, the PMSA requires that a member of the PMSA must disclose to the PMSA any interest that the member has which is of a class or description determined by the PMSA. The PMSO also provides that the PMSA is to establish and maintain a register relating to any such disclosed interests which it must make available for inspection through the Internet.

The purpose of maintaining and publishing a register of interests is not specified in the PMSO. Nonetheless, the PMSA infers that the purpose is to enhance transparency and to ensure objectivity, fairness and public confidence in the decision-making of the PMSA.

The register of interests may contain personal data as defined in the Personal Data (Privacy) Ordinance. By accessing the register for this Member, you acknowledge the above stated purposes of the register and undertake not to use the personal data for any other purposes.

To view the register for this Member, please click “Continue”.

Regulating Licensees