FIMM makes public reprimand against UTS & PRS

By MUHAMMAD ARIEF CHE SOH
arief@dagangnews.com

KUALA LUMPUR 3 March. - The Federation of Investment Managers Malaysia (FIMM) recently reprimanded two individuals, former Unit Trust Scheme (UTS) and Private Retirement Scheme (PRS) Consultants.

FIMM in a statement said, this is because of the misconduct or breach of FIMM’s Code of Ethics and Rules of Professional Conduct (Unit Trust Funds), Second Edition dated 22 January 2013 (FIMM’s Code).

The two individuals involved are a former UTS and PRS Consultant of RHB Bank Berhad (RHB), Jonsen A/L Samikannoo (Jonsen) and a former UTS and PRS Consultant of Principal Asset Management Berhad (Principal), Mohd Ariffin Bin Azmi.

The full reprimanded as follows;

FIMM said, Clause 3.1.3(a) and (c) of FIMM’s Code requires UTS Consultants at all times to act with honesty, dignity and integrity and deal in good faith and with best of intentions for investors.

"Clause 3.1.7(b) of FIMM’s Code prohibits UTS Consultants from misrepresenting or recklessly representing the unit trust funds and/or the characteristics of the unit trust funds offered by his principal.

"Clause 3.1.11(a) of FIMM’s Code requires UTS Consultants to conduct all dealings with everycare, skill and diligence and ensure as far as possible that the unit trust fund is suitable for the needs of the investor and is not beyond the investor’s resources.

"Clause 3.1.12(a)(v) of FIMM’s Code requires UTS Consultants to adequately explain to an
investor the nature and characteristics of the unit trust fund that is being marketed and should make clear all essential attributes of the unit trust fund including all fees, charges and expenses involved," said FIMM.

Meantime, Clause 3.1.11(g) of FIMM’s Code requires UTS Consultants to conduct all dealings with every care, skill and diligence. 

In this regard, UTC should not request or allow an investor to pre-sign (or pre-thumbprint) any form relating to their investment.

Additionally, FIMM said, since Jonsen and Ariffin are currently not registered as UTS or PRS Consultants, they have been barred from registration with FIMM for a period of three months effective 4 February 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 misconducts and reminding them that it is crucial to observe FIMM’s rules when marketing and distributing UTS and PRS in Malaysia to protect the interests of the investing public," said FIMM. - DagangNews.com