KUALA LUMPUR: The Federation of Investment Managers Malaysia (FIMM) has reprimanded two former unit trust scheme (UTS) and private retirement scheme (PRS) consultants for misconduct/breaches of FIMM’s Code of Ethics and Rules of Professional Conduct (Unit Trust Funds), Second Edition (FIMM’s Code).
In a statement today, FIMM said one of the consultants was found to have promoted and distributed RHB Emerging Income Fund (RHB EIF), a unit trust fund offered to sophisticated investors, to an investor who did not qualify as a sophisticated investor.
“The consultant also failed to give a clear explanation to the investor as to how and where the proceeds from her fixed deposit account in RHB Bank Bhd amounting to RM90,000 will be invested in, before proceeding to invest the said amount in RHB EIF,“ it said.
Another consultant was found to have accepted pre-signed/pre-thumbprint investment forms from an investor; performed unauthorised withdrawals from the investor’s Employee Provident Fund account amounting to RM120,000 for purposes of UTS investment with principal; and performed unauthorised redemptions of the investor’s UTS investment with principal amounting to RM5,388.46.
Since both consultants are currently not registered as UTS or PRS consultants, FIMM has barred them for three months effective Feb 4, 2021.
“This public reprimand is imposed to send a strong message that FIMM will take action against those who fail to comply with any rules issued by FIMM.
“This is to deter UTS and PRS consultants from committing any misconduct and reminding them that it is crucial to observe FIMM’s rules when marketing and distributing UTS and PRS to protect the interests of the investing Malaysian public,“ it added. — Bernama