3.4 The Deed, the Prospectus or Disclosure Document, and the Product Highlights Sheet

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

3.4 The Deed, the Prospectus or Disclosure Document, and the Product Highlights Sheet

Key Takeaways Explain This Topic AI

A modification to a scheme's deed requires a supplementary deed registered with the SC, accompanied by the investors' resolution or a statement from the Trustee and Scheme Provider.

Registration of a prospectus or disclosure document by the SC does not mean the SC recommends the scheme, and a disclaimer saying so is included.

A Scheme Provider that issues a prospectus or disclosure document that breaches the Act can be fined up to RM3 million, imprisoned for up to ten years, or both.

If a supplementary or replacement prospectus is registered before an investor's units are issued, the investor must be notified and given at least 14 days to withdraw for a full refund.

A Product Highlights Sheet must warn investors not to pay cash to a UTS Consultant or issue a cheque in the Consultant's name.

Last updated: October 2026

The Deed

The CMSA and PRS Regulations require the UTS or PRS deed to be registered with the SC , and its contents must meet the SC's requirements. Changes require a supplementary deed , accompanied by the appropriate investors' resolution or a statement from the Trustee and Scheme Provider , so that the changes protect investors.

Minimum contents (UTF and PRS Guidelines, Schedule D)

Part of the deed Examples

Covenants of the Scheme Provider Ensure the scheme has a Trustee at all times ; operate the fund under the deed

Covenants of the Trustee Ensure the fund has a Management Company at all times ; safeguard investors' rights and interests

Joint covenants Safeguard investors; keep the registered deed in force for the life of the scheme

Other provisions Creation and particulars of the scheme; provisions on investments; remuneration of the manager and Trustee

The deed must uphold investors' interests and be consistent with securities laws and SC guidelines.

The Prospectus (UTS) and Disclosure Document (PRS)

A prospectus is issued by a UTMC and a disclosure document by a PRS Provider. Both let investors make an informed decision .

No securities may be issued and no invitation to invest made unless a prospectus or disclosure document has been registered by the SC .

Potential investors must receive a copy (hard or soft) when they ask to subscribe and must be advised to read and understand it first.

The CMSA sets the core rules; the Prospectus Guidelines for CIS add prospectus requirements, and the PRS Guidelines and PRS Regulations add disclosure-document requirements.

The SC will refuse to register a document that does not comply, or that contains false or misleading statements or material omissions.

Registration is not a recommendation – the SC does not recommend the scheme or take responsibility for the statements, and a disclaimer says so.

The directors of the Scheme Provider remain responsible for the document. Issuing a non-compliant document can lead to a fine of up to RM3 million, up to ten years' imprisonment, or both .

When deciding what to include, preparers consider the nature of the scheme, the likely investors (their knowledge and experience) and what professional advisers, including Consultants, can be expected to know.

Electronic prospectus and communications

The UTF Guidelines allow electronic prospectuses and application forms. A Management Company may send reports, statements and notices electronically if either investors are told of the method when they open their account , or, before making electronic delivery the default, it mails all investors a notice that they will receive documents electronically unless they opt out.

Supplementary and replacement documents

If information becomes false or misleading (for example after a tax-law change), the document must be withdrawn, or the Scheme Provider may issue:

a supplementary prospectus/disclosure document correcting the original or describing the change; or

a replacement prospectus/disclosure document carrying a clear, bold statement that it is a replacement.

A supplementary document forms part of the original , and Consultants must make sure every copy given to investors includes all supplementary documents (there may be several).

Important

If a supplementary or replacement document is registered after an investor applies but before units are issued , the investor must be notified and given at least 14 days from the notice to withdraw the application, with a full refund of the application amount.

The Product Highlights Sheet (PHS)

A PHS sets out a fund's salient features so investors can understand it and compare products . The Guidelines on Product Highlights Sheet set the main rules; the PRS Guidelines add PRS-specific items. A PHS is required in addition to the prospectus or disclosure document, and must be clear, concise, not false or misleading and free of material omissions.

Key PHS content (UTS and PRS) Specific items required
Responsibility statement Average total returns over specified periods
Statement of disclaimer Annual total returns over a specified period
Brief information on the product, scheme, funds and provider Performance against a benchmark
Product suitability Portfolio turnover ratio
Key product features Gross and net distribution per unit and form of payment

Key risks and others Warning: do not pay cash to a UTS Consultant or issue a cheque in the Consultant's name ; past performance is no indication of future performance

A PRS PHS must also explain the fund's taxation , the member's tax deduction and tax liabilities (including the tax penalty on pre-retirement withdrawals) , and the maximum tax deduction for employers contributing for employees.

Investors must be told of their right to receive a PHS and given reasonable time to read it. A hard or electronic copy must be provided before the investment decision, and a hard copy on request .

Complaints route stated in the PHS

Internal dispute resolution with the Scheme Provider .

If dissatisfied, refer the dispute to FMOS .

The investor may also complain to the SC and FIMM , even while an FMOS case is running.

Plain Language and Advertising

Under the Prospectus Guidelines and PRS Guidelines, information must be clear, concise and in plain language . FIMM's Guidance on Simple Language and Effective Drafting Practices for Prospectus helps members comply.

The SC's Guidelines on Advertising for Capital Market Products and Related Services apply to issuers, licensed persons, capital market service providers and recognised market operators, and therefore to UTS and PRS Consultants . Advertisements must give clear, fair and balanced information and avoid exaggerated, flamboyant, overstated or over-zealous messages (details in section 4.2).