She resigned from the post following a government inquiry into interference with academic freedom at the Hong Kong Institute of Education while she was Permanent Secretary.

Law headed the chief executive's office from January to July 1997; and was made Commissioner for Transport in August 1997.

[6] During the 2019 Hong Kong anti-extradition bill protests, National Public Radio reported, "Appearing on a local radio program, Fanny Law and Ip Kwok-him, who advise the Beijing-appointed government in Hong Kong, each offered qualified apologies for the bill.

'I'm willing [to say sorry] as I really thought at the time 99.9% of Hongkongers would not be affected by the bill,' Law said, according to The South China Morning Post.

Law resigned from her post at 20 June 2007 after the HKIEd probe accused her of interfering with academic freedom.

There are fears over potential conflicts of interest: this decision was linked to the public consultation on post-service employment of civil servants following the row over Leung Chin-man's appointment to a local property developer.