KUALA LUMPUR: The Federation of Investment Managers Malaysia (FIMM) has reprimanded eight former unit trust scheme (UTS) and/or private retirement scheme (PRS) consultants for their misconduct or breaches of FIMM's Consolidated Rules (FCR), Code of Ethics and Rules of Professional Conduct (Second Edition), or Code of Ethics (Third Edition).
In a statement, FIMM said six former UTS and/or PRS consultants were found to be in breach of Rules 4.1.1 and 4.2.1, read together with Rule 4.3.1(f) of the FCR.
They had submitted falsified academic certificates as part of their application for registration as UTS and/or PRS consultants to their respective distributors.
These former consultants have been barred from registration with FIMM for a fixed period, details of which are listed below.
Meanwhile, one former UTS and PRS consultant was found to be in breach of Clause 3.5 of the FIMM's Code for dealing with an unapproved investment scheme that was not recognised, approved, or registered for offer or distribution by the relevant laws in Malaysia.
FIMM also noted that a former UTS consultant was found to have violated Clauses 3.1.3(a) and 3.3.5 of FIMM's Code, as well as Paragraphs 4.1(b) and 4.3(c) of FIMM's Revised Code, for accepting cash from investors intended for UTS investments, misappropriating the investment money, and providing falsified account statements and investment application forms to the investors.
"These public reprimands are 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/or PRS consultants from committing any misconduct and remind them that it is crucial to observe FIMM's rules when marketing and distributing UTS and/or PRS in Malaysia to protect the interests of the investing public," FIMM said.
According to FIMM, the misconducts of Ling, Yuzainee, Goh, Suria, Tong, and Syahida were detected by FIMM internally.
The misconducts of Tan and Siti were referred by the Securities Commission Malaysia (SC) and her former distributor to FIMM, respectively.
FIMM reminded the public to refrain from giving cash or having it credited into UTS or PRS consultants' personal accounts for investment purposes.
"The public is also advised to 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," it said.