FIMM imposes sanction on unit trust consultants for various breaches

THE Federation of Investment Managers Malaysia (FIMM) has today issued its second public reprimand for 2021 in the span of three days.

Former unit trust scheme (UTS) consultant Zu Syaiezaty Mohamad has been reprimanded for misconduct/breach of FIMM’s Code of Ethics and Rules of Professional Conduct (Unit Trust Funds), Second Edition dated Jan 22, 2013.

She was found to be in breach of Clause 3.1.3(a) of FIMM’s Code for not acting in the best interest of an investor by performing transactions in respect of the investor’s unit trust account with Principal Asset Management Bhd.

The action entails redemption, switching and purchase of unit trust schemes using the same investment proceeds of the investor into one or more unit trust funds of Principal Asset Management for the purpose of generating commission, thus causing significant financial losses to the investor.

“Clause 3.1.3(a) of FIMM’s Code requires UTS Consultants at all times to (a) act with honesty, dignity and integrity,” FIMM pointed out in a media release.

“Additionally, Zu has been barred from future registration with FIMM effective Nov 27, 2020.”

Earlier on April 6, FIMM has taken similar action against Junaiza Dzulariftaza, a former UTS consultant of Public Mutual Bhd.

Junaiza was found to be in breach of Clauses 3.1.3(a) and 3.3.5 of FIMM’s Code for:

  • Accepting cash amounting to RM2,000 from a prospect investor which was transferred into her personal bank account for purposes of UTS investment with Public Mutual on March 29, 2019; and
  • Misappropriated the said amount by not investing it into the UTS with Public Mutual as intended by the prospect investor.

Clause 3.3.5 of FIMM’s Code prohibits UTS consultants from accepting cash from the investors for purposes of investment in unit trust funds nor have it credited into their personal bank accounts.

“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,” stressed the federation.

“This is to deter UTS and Private Retirement Scheme (PRS) consultants from committing any misconducts and reminding them that it is crucial to observe FIMM’s rules when marketing and distributing UTS/PRS in Malaysia to protect the interests of the investing public.”

Last year alone, FIMM reprimanded a total of 13 UTS consultants for various offences that range from accepting cash, misappropriation of money and making arrangement with another consultant/parking of sales to allowing non-registered person to market/distribute UTS and/or PRS. – April 9, 2021

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