THE Federation of Investment Managers Malaysia (FIMM) has recently reprimanded two former Unit Trust Scheme (UTS) and Private Retirement Scheme (PRS) consultants for their misconducts/breaches of FIMM’s Code of Ethics and Rules of Professional Conduct (Unit Trust Funds), Second Edition dated Jan 22, 2013.
The two reprimanded consultants are:
- Reza Azri Abdul Rahman (Reza), a former UTS and PRS consultant of Principal Asset Management Bhd (FIMM No: 031-0-22958 & P-031-0-00509) who was found to be in breach of Clauses 3.1.3(a) and 3.3.5 of FIMM’s Code.
According to FIMM, Reza has committed the following misconducts: (i) Accepting RM13,000 from an investor which was transferred into his personal bank account for purposes of PRS investments with Principal Asset Management; and (ii) Misappropriating the investor’s money amounting to RM13,000 by not investing in PRS as intended by the investor.
- Low Pei Yee, a former UTS and PRS Consultant of Public Bank Bhd (FIMM No: 547-I-22379 & P-547-I-20349) who was found to be in breach of Clause 3.3.5 of FIMM’s Code.
According to FIMM, Low has committed the following misconducts: (i) accepting RM10,000 in cash from an investor for purposes of UTS investment with Public Bank; and (ii) accepting RM2,000 in cash from another investor for UTS investment purposes with Public Bank.
Clause 3.1.3(a) of FIMM’s Code requires UTS and PRS consultants at all times to act with honesty, dignity and integrity while Clause 3.3.5 of FIMM’s Code prohibits UTS and PRS consultants from accepting cash nor have it credited into their personal bank accounts from investors for purposes of investment in UTS and PRS.
“Additionally, since Reza and Low are currently not registered as UTS or PRS consultants, they have been barred from future registration with FIMM,” FIMM pointed out. “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 in Malaysia to protect public interest.
FIMM further reminded the public to refrain from giving cash or have it credited into the UTS or PRS consultants’ personal account for investment purposes.
“The public is also advised not to pre-sign any investment application form and ensure that the official receipt of investment is received from the distributor of the UTS/PRS. If any detail or information in the receipt is inaccurate, please check with the distributor,” added FIMM. – Feb 11, 2022
