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4.6 EPF Transfers and Withdrawals for Investment in Approved Unit Trust Funds

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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

4.6 EPF Transfers and Withdrawals for Investment in Approved Unit Trust Funds

Key Takeaways Explain This Topic AI

EPF members below age 55 may transfer up to 30% of their savings in Akaun Persaraan (formerly Account 1) that exceed the Basic Savings for their age.

The minimum EPF-MIS investment amount is RM1,000.

EPF caps the initial sales charge for EPF-MIS at 3% through agents and counters and 0.5% through its online i-Invest channel.

Repurchase proceeds of units bought with EPF savings are returned to the member's EPF account, and switches between UTMCs must be done as a redemption and new application.

EPF revised the Basic Savings schedule from 1 January 2026, phasing it up over five years towards RM390,000 at age 60.

Last updated: October 2026

What EPF-MIS Is

The EPF Members Investment Scheme (EPF-MIS) lets members invest part of their EPF savings in unit trust funds approved by EPF , managed by EPF-appointed fund management institutions. Applications can be made through EPF's online i-Invest service (in i-Akaun) or through UTMC or IUTA agents and counters approved by EPF. EPF encourages members to consult a UTS Consultant before investing.

Important

EPF-MIS is not available for PRS. It applies only to approved UTS.

Charges

EPF sets the cap on the initial (front-end) sales charge for MIS investments, and may change it:

  • Channel Maximum initial sales charge
  • Through a UTMC's agent or counter Up to 3%
  • Online through EPF i-Invest Up to 0.5%
  • How Much Can Be Transferred

Member's age Source Amount

Below 55 Akaun Persaraan (formerly Account 1) Up to 30% of savings above the Basic Savings for the member's age

55 and above Akaun 55 or Akaun Emas Any amount, but at least RM1,000 must remain in the account (treated as a withdrawal)

Other conditions in the study guide: the minimum investment is RM1,000 , and members may make multiple transactions within three months as long as the total stays within the eligible amount. Members must also follow EPF's administrative rules, which EPF can change.

The formula Eligible amount = ( Akaun Persaraan savings − Basic Savings ) × 30 % \text{Eligible amount} = (\text{Akaun Persaraan savings} - \text{Basic Savings}) \times 30\% Eligible amount = ( Akaun Persaraan savings − Basic Savings ) × 30%

What "Basic Savings" means

Basic Savings is the pre-set amount EPF expects a member to have in Akaun Persaraan at each age so that they reach a minimum retirement sum. The FCE study guide still prints the older 2019 schedule (rising to RM240,000 at age 55 , meant to support about RM1,000 a month for 20 years). EPF has since updated it: under its Retirement Income Adequacy framework, the revised Basic Savings schedule took effect on 1 January 2026 , phasing up over five years with annual RM30,000 steps towards RM390,000 at age 60 . Always check EPF's current table before advising.

Worked examples (illustrative Basic Savings figures)

  • Member Age Akaun Persaraan Basic Savings (assumed) Calculation Result
  • A 22 RM4,000 RM10,000 Savings below Basic Savings Not eligible
  • B 22 RM11,000 RM10,000 (11,000 − 10,000) × 30% = RM300 Not eligible : below the RM1,000 minimum
  • C 25 RM24,000 RM18,000 (24,000 − 18,000) × 30% = RM1,800 Eligible : RM1,000 to RM1,800
  • D 35 RM80,000 RM47,000 (80,000 − 47,000) × 30% = RM9,900 Eligible : up to RM9,900

Members A to C mirror the study guide's Appendix 4.2 examples; the Basic Savings figures are for illustration only.

Administrative Points Consultants Must Know

Proceeds go back to EPF – repurchase proceeds of units bought with EPF savings are repatriated to the member's EPF account, not paid to the member.

No direct switches between UTMCs – the member must redeem from the existing UTS (proceeds go back to EPF) and then apply to the new UTMC.

Two applications for mixed money – a member investing in one fund with both EPF money and personal savings must submit two separate applications .

Keep up to date – EPF changes its rules from time to time (including the Basic Savings table and charges), so Consultants should check EPF's website.

How EPF-MIS Fits Into Advice

The study guide's life-cycle discussion notes that for clients aged about 31 to 44 , Akaun Persaraan balances may now be large enough to transfer some savings to EPF-approved UTS that fit their objectives (Chapter 6).

Because the money is retirement savings , suitability matters even more: a member near 55 with a low risk tolerance should not be steered into a volatile fund just because the transfer is possible.

The lower 0.5% online charge is a cost point a Consultant should disclose honestly when a client could invest directly.

The cost difference in ringgit

For an RM10,000 EPF-MIS investment, the maximum charges are:

  • Channel Maximum charge Ringgit cost Amount invested
  • Agent or counter 3% RM300 RM9,700
  • EPF i-Invest online 0.5% RM50 RM9,950

The RM250 gap compounds over the years the money stays invested, so a Consultant's advice and service need to justify the higher charge.

Cash Investment vs EPF-MIS Investment

  • Feature Investing personal cash Investing through EPF-MIS
  • Source of money Investor's own savings Akaun Persaraan (below 55) or Akaun 55/Emas (55 and above)

Eligible funds Any fund the Distributor offers Only EPF-approved funds of appointed fund management institutions

  • Maximum sales charge As disclosed in the prospectus Capped by EPF (3% agent, 0.5% online)
  • Where redemption money goes To the investor Back to EPF (for members below 55)
  • Switching to another UTMC Redeem and reinvest freely Redeem to EPF, then reapply
  • Available for PRS? Yes, PRS can be bought with cash No
  • Scenario: A 56-Year-Old Member

Encik Salleh, 56, has RM150,000 in Akaun 55. Members aged 55 and above may invest any amount from Akaun 55 or Akaun Emas, provided at least RM1,000 remains , so he could invest up to RM149,000. The study guide notes this is treated as a withdrawal from EPF. A Consultant should still assess suitability carefully: at 56, with retirement income depending on these savings, a conservative allocation and a clear explanation of risk are essential.