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3.9 Registration of Consultants: Eligibility, Fit and Proper, Duration, Variation and Revocation

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FIMM Combined Examination FCE

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1 Introduction: The FIMM Combined Examination (FCE)

0.1 FCE Exam Facts, Registration Rules and How to Use This Guide

2 Chapter 1: Understanding Collective Investment Schemes in Malaysia

1.1 What a Collective Investment Scheme Is and How Malaysian CIS Are Classified 1.2 Investment-Linked Funds Are Not UTS; Industry Growth and History 1.3 Participants in the CIS Ecosystem: Unit Holders, Managers, Trustees, Distributors and Regulators

3 Chapter 2: Introduction to UTS and PRS

2.1 UTS and PRS as Investments: Mechanics, Unit Calculations and How They Compare 2.2 Types of Funds: By Asset Class, Fund Structure and Investment Objective 2.3 Methods of Investing and Dollar Cost Averaging 2.4 Benefits and Disadvantages of Investing in UTS and PRS 2.5 Understanding Risk and the Risks of Investing in Schemes 2.6 Shariah-Compliant Schemes, Their Risks and the Role of the Shariah Advisory Council

4 Chapter 3: Regulatory Framework

3.1 The Regulatory Framework: The SC, Other Regulators and FIMM's Dual Role 3.2 Legislation, SC Guidelines and FIMM Rules Governing UTS and PRS 3.3 Regulation of Scheme Providers and Oversight Functions 3.4 The Deed, the Prospectus or Disclosure Document, and the Product Highlights Sheet 3.5 Portfolio Constraints: Permitted Investments, Liquidity, Borrowing and Exposure Limits 3.6 Regulations for Other CIS: Real Estate Investment Trusts and Exchange-Traded Funds 3.7 Regulation and Duties of the Scheme Trustee 3.8 Regulation of Marketing and Distribution: Distributor Categories, Collection Points and Agency Structure 3.9 Registration of Consultants: Eligibility, Fit and Proper, Duration, Variation and Revocation

5 Chapter 4 (Part 1): Marketing and Distribution — Disclosure and Transactions

4.1 Servicing Investors and the Contents of the Prospectus and Disclosure Document 4.2 The Product Highlights Sheet, Advertising Standards and Account Maintenance 4.3 The Purchase Process and Suitability Assessment Before Personal Advice 4.4 Cooling-Off Rights, Repurchase of Units, Suspension and Switching 4.5 Financing the Purchase of UTS: Process, Safeguards and the Risk Disclosure Statement 4.6 EPF Transfers and Withdrawals for Investment in Approved Unit Trust Funds

6 Chapter 4 (Part 2): Marketing and Distribution — Distributions, Reporting and Service

4.7 Distributable Income, Distributions and NAV, "Buying" a Distribution and Taxation 4.8 Reporting to Investors: Confirmations, Statements, and Semi-Annual and Annual Reports 4.9 Marketing Principles, Delivering Quality Service and Handling Complaints 4.10 The Effect of Inflation, Taxation and Investment Costs on Returns 4.11 Investment Alternatives to UTS and PRS

7 Chapter 5: Code of Ethics

5.1 Compliance, Ethics and the Structure of the FIMM Code of Ethics 5.2 Core Principle 1: Honesty and Integrity 5.3 Core Principle 2: Professionalism 5.4 Core Principles 3 to 5 and Non-Compliance: Conflicts, Disclosure, Confidentiality and Misconduct

8 Chapter 6: Personal Financial Planning

6.1 Personal Financial Planning: Definition, Features, Five Areas and the Six Steps 6.2 Financial Planner Credentials, Skills, Remuneration, and How a Planner Differs from a Consultant 6.3 The Consultant's Role in Investment Planning and Advising Clients Through the Life Cycle

9 Chapter 7A: Features and Operations of UTS

7A.1 Structure of a UTS, the Trust Deed, the Parties and Modifying the Deed 7A.2 UTS Fees, Charges and Expenses, and the Management Expense Ratio 7A.3 Dealing in Units, Valuation, NAV Calculation and Unit Prices 7A.4 Forward and Historical Pricing, and the UTMC's Holding of Units 7A.5 Unit Splits, Distributions and Their Effect on NAV 7A.6 Measuring UTS Performance: Returns, Performance Tables, Risk Measures and Qualitative Factors 7A.7 Operational Aspects of Shariah-Compliant UTS and PRS and the Shariah Contracts Between the Parties 7A.8 Borrowing to Invest in UTS and the Risks of Loan Financing

10 Chapter 7B (Part 1): The Pension Landscape and the PRS Framework

7B.1 The Malaysian Pension Landscape and the Adequacy of Retirement Savings 7B.2 The World Bank's Five-Pillar Pension Framework in the Malaysian Context 7B.3 Key Players: EPF, KWAP, LTAT, Employer-Sponsored Schemes and Annuities 7B.4 Why Malaysia Needs PRS: Ageing, Longevity Risk and the Benefits of PRS 7B.5 The PRS Framework and the Private Pension Administrator (PPA) 7B.6 PRS Structure, the Trust and Deed, Advantages over Other Products, Eligibility and Contributions

11 Chapter 7B (Part 2): PRS Operations

7B.7 The PRS Default Option and Tax Incentives for Members and Employers 7B.8 The PRS Account Structure (Sub-Accounts A and B) and Vesting 7B.9 PRS Withdrawals: Pre-Retirement, Retirement, Permanent Departure, Incapacity and Death 7B.10 Switching Between Funds and Transferring Between PRS Providers (Portability) 7B.11 Unclaimed Monies, Death of a Member and PRS Nomination 7B.12 PRS Funds: Number, Core and Non-Core Funds, Objectives, Risk Profiles, Asset Classes, Authorisation and Naming 7B.13 PRS Fees, Charges and Expenses 7B.14 PRS Unit Creation, Forward Pricing, Valuation, Distributions, Performance Measurement and Electronic Communication

3.9 Registration of Consultants: Eligibility, Fit and Proper, Duration, Variation and Revocation

Key Takeaways Explain This Topic AI

A person registering as a Consultant must be at least 21, hold credits in any three SPM subjects or an equivalent, and pass the FIMM examination unless exempted.

The fit and proper criteria are honesty, integrity and reputation; competence and capability; and financial soundness and solvency.

A Consultant may represent only one Principal and may deal only in schemes of that Principal or distributed by it.

A Consultant's registration lapses on 31 December each year unless renewed, and FIMM requires at least 16 CPD points in a year before a renewal is considered.

A former Consultant who has left the industry for more than three years must sit the examination again to re-register.

Last updated: October 2026

Why Consultants Are Regulated

Everyone involved in marketing and distributing UTS and PRS is "dealing in unit trusts" or "dealing in PRS" . Distributors must be licensed for these regulated activities under Schedule 2 of the CMSA or be "registered persons" under Schedule 4 , and they act through Consultants who must be registered with FIMM .

The aim is a minimum standard of knowledge , because Consultants are often the investor's first contact (and, for PRS, the employer's). Consultants owe investors a duty of care to:

  • act with honesty, integrity and dignity, professionally and ethically;
  • treat investors with respect and disclose all pertinent information; and

not misrepresent the scheme, its funds or past performance.

A Consultant must show proof of FIMM registration in the manner FIMM specifies, and must carry out a suitability assessment before recommending an unlisted capital market product (Chapter 4).

Eligibility

Under the FCR, an applicant must:

  • Requirement Detail
  • Age At least 21

Education Credits in any three SPM subjects or equivalent (FIMM's Registration Manual also accepts a recognised diploma or degree)

  • Examination Pass the FIMM examination (now the FCE) unless exempted under Appendix 1-A and 1-B of the FCR
  • Character Meet the fit and proper criteria
  • Fit and proper (Chapter 4 of the FCR)

Criterion Factors FIMM considers (examples)

Honesty, integrity and reputation Not refused or restricted from a trade or profession needing registration; not censured, reprimanded, disciplined, suspended or refused membership by FIMM, the SC or other bodies, in Malaysia or elsewhere

Competence and capability A satisfactory record of past performance or expertise; knowledge, skills and experience to handle the regulated activities

Financial soundness and solvency Not subject to an unsatisfied judgment debt execution; not in a compromise or scheme of arrangement with creditors that is still in operation

The applicant submits a statutory declaration (now a fit-and-proper self-declaration in the FIMM Core System) to the intended Principal . The criteria must be met continuously : failing them is a breach that can lead to suspension or revocation. Distributors must monitor their Consultants and immediately notify FIMM if a Consultant is no longer fit and proper.

Rules Distributors Must Enforce

A Consultant may represent only one Principal .

A Consultant may deal only in the schemes of his Principal , or schemes it distributes, and cannot arrange to sell other providers' schemes.

A UTS/PRS Consultant of a UTMC, PRS Provider, IUTA or IPRA who holds a CMSRL for financial planning and wants to join a CUTA or CPRA must first terminate the existing registration.

IUTAs and IPRAs may register only full-time employees as Consultants, unless the IUTA/IPRA is a UTMC, a CMSL holder, a licensed insurer or a registered takaful operator.

CUTAs and CPRAs may register only full-time employees who hold a CMSRL for financial planning or who meet FIMM's exemption criteria.

Duration and Renewal

A Consultant's registration lapses on 31 December each year unless renewed under FIMM's Registration Manual. FIMM's CPD rule (FCR Rule 7.1.1) requires at least 16 CPD points in a year before a renewal is considered. FIMM can still suspend or revoke a registration at any time under the FCR.

Variation, Re-registration and Termination

  • Event Requirement
  • Change from employee to agent (or the reverse) FIMM approval to vary registration
  • Change of Principal FIMM approval to vary registration

UTS Consultant adding PRS (or the reverse) Variation; may require the examination or an exemption (Registration Manual)

Out of the industry more than three years Must sit the examination again to re-register (re-registration within three years can be exempted if the CPD condition is met)

  • Consultant resigns Consultant notifies the Principal
  • Principal terminates a Consultant Principal notifies the Consultant
  • Either case The Principal records the resignation or termination in FIMM's registration system
  • Suspension and Revocation

FIMM may suspend or revoke a Consultant's registration if:

  • the Consultant no longer meets an eligibility requirement;
  • the Consultant's CMSRL is suspended or revoked by the SC;
  • the Consultant breaches FIMM rules, SC regulations or guidelines, or securities or other laws;
  • the SC directs FIMM to suspend or revoke; or

information in the statutory declaration is false , in part or in whole.

A registration may also be suspended or revoked if the Principal's registration is revoked or suspended , or the Principal ceases operations .

From Application to Registration (Registration Manual)

The applicant chooses the scheme type (UTS, PRS or both), approaches a Distributor as the intended Principal and creates a login in the FIMM Core System (FCS) .

The Distributor accepts the applicant, verifies the documents and pays the fees through its prepayment account.

The applicant completes the fit-and-proper self-declaration and books the FCE.

After passing, the FCS runs pre-registration screening , including a bankruptcy check ; an undischarged bankrupt cannot proceed.

FIMM issues an individual FIMM number , which the Consultant quotes in all later dealings with FIMM.

Only after step 5 may the Consultant market or distribute schemes.