4.2 The Product Highlights Sheet, Advertising Standards and Account Maintenance

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

4.2 The Product Highlights Sheet, Advertising Standards and Account Maintenance

Key Takeaways Explain This Topic AI

A PHS must be available for each UTS, while for PRS one PHS covers all core funds and each non-core fund has its own PHS.

The PHS must be presented to a potential investor at the initial engagement or when the investor shows interest in the scheme.

Under the SC's Advertising Guidelines, an advertisement must state that it has not been reviewed by the SC and must not use the SC's name or logo.

Any testimonial in an advertisement must come from a person who has invested in the scheme or used the service, and any compensation paid must be disclosed in the same advertisement.

Advertising includes social media, messaging apps such as WhatsApp, presentations, seminars and advertorials, not just print and broadcast media.

Last updated: October 2026

The Product Highlights Sheet in Practice

Rule Detail
Purpose Help investors understand the product and compare products
Status Issued in addition to the prospectus or disclosure document
UTS A PHS for each UTS
PRS A PHS for each fund, except the core funds, which share one PHS
Timing Present the PHS (hard or soft copy) at the initial engagement or when the investor shows interest
Reading time Give reasonable time to read and understand it

PRS exception Where a member relies on the default option instead of choosing funds (common when an employer contributes), the fund-reading step does not apply in the same way

Investors should be told to read all the disclosure materials and seek legal or investment advice if in doubt. (Section 3.4 lists the PHS contents.)

The SC's Advertising Guidelines

The Guidelines on Advertising for Capital Market Products and Related Services cover promotion through printed, electronic, digital or any other means , including:

Medium Examples
Print Magazines, newspapers, brochures, promotional fact sheets
Broadcast Radio, television, cinema
Display Billboards, posters, signs at public venues
Internet Web pages, banner adverts, YouTube, Facebook, LinkedIn, Twitter (X)
Social and messaging Social media, discussion sites, SMS, MMS, WhatsApp messages
Direct Post, fax, email, telemarketing, on-hold audio
Events Presentations, seminars, advertorials

UTS and PRS Consultants are advertisers under these guidelines and must:

give clear, fair and balanced information; no exaggerated, flamboyant, overstated or over-zealous messages;
treat investors fairly ; never exploit a lack of expertise or knowledge;
make adverts easy to understand , especially for vulnerable groups such as the elderly ;
keep content consistent with the prospectus, disclosure document and PHS;
keep information current and accurate ;
make sure the advert is clearly identifiable as an advertisement ;
ensure any third-party advertising provider follows the guidelines;

use testimonials only from people who have invested or used the service, and disclose any compensation in the same advert;

tell investors the advert is subject to warnings, disclaimers and terms;

direct investors to the prospectus, disclosure document and PHS , stating their issue date and where to get them;

state clearly that the advert has not been reviewed by the SC ; and

not use the SC's name or logo or imply SC endorsement.

The guidelines also give guidance on specific elements (returns, features, benefits and risks; fees; comparisons, ratings and awards; past performance and forecasts; warnings; images and examples; timeliness; terms and phrases; jargon; target audience; complexity; promotion terms; regulators' logos) and on audio, film and video, internet and outdoor adverts. Complying with them does not remove other legal obligations.

The FIMM Code of Ethics adds that a Consultant must use only advertising and promotional material provided or approved by his Distributor .

Spot the breach

Draft social-media post Problem
"Guaranteed 10% a year – safer than FD!" Exaggerated; implies a guarantee; unbalanced comparison
"Approved by the Securities Commission!" with the SC logo Implies SC endorsement; uses the SC's logo
A client testimonial from someone who never invested Testimonials must come from actual investors or users
No mention of the prospectus or PHS Must direct investors to the offering documents and their issue dates
The Register of Unit Holders and Account Maintenance

Each Scheme Provider keeps a register of unit holders or PRS members containing a lot of personal data. Investors may ask to update it for:

a change of mailing or email address;
a new identity card number;
a change of name;
a new bank account; or

a change in distribution reinvestment instructions.

Consultants must know the provider's requirements (for example, whether certified copies are needed, or whether all joint holders must sign). Not knowing them is poor service.

More complex events include the death of an investor , transferring units to a family member, or registering a lien or charge over units as security for a loan. Consultants should know the requirements and who in the provider handles them.

A PHS Walk-Through Checklist for Consultants

When presenting a PHS, a Consultant who follows the study guide and the Code of Ethics would cover:

What the fund is – the product, scheme, fund and Scheme Provider in brief.

Who it suits – the product suitability statement, compared with the investor's own profile.

Key features – objective, asset allocation, distribution policy and fees.

Key risks – in plain language, including the chance of losing capital.

Performance – average and annual total returns against the benchmark, with the warning that past performance does not indicate future performance.

Payment rules – never pay cash to the Consultant or issue a cheque in the Consultant's name.

Where to complain – the provider first, then FMOS, the SC and FIMM.

Next documents – where to get the full prospectus or disclosure document, and that the investor should read it before deciding.

Giving the investor time to read the PHS, and recording that it was provided, protects both the investor and the Consultant if a dispute arises later.