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7B.10 Switching Between Funds and Transferring Between PRS Providers (Portability)

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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

7B.10 Switching Between Funds and Transferring Between PRS Providers (Portability)

Key Takeaways Explain This Topic AI

Members may switch between core and non-core funds within a PRS, and PRS Providers are encouraged to charge low or no switching fees, though they may limit the number of switches a year.

A first transfer to another PRS Provider can only be made after one full year from the first contribution to any fund managed by the transferor provider.

Only one transfer may be made from a particular PRS Provider in a calendar year.

Transferred amounts keep the 70:30 split between sub-accounts A and B, and if sub-account B is too small, units from sub-account A make up the shortfall.

Once a properly completed transfer form is accepted, the transferor PRS Provider has five business days to verify, redeem the units and pay the transferee provider.

Last updated: October 2026

Switching Between Funds Within a Scheme

Switching is allowed : funds are at the member's disposal to change asset allocation or respond to market views (for example from a bond fund to a money market fund when rates may rise, or out of an emerging-market equity fund during political turmoil).

Members may switch between core and non-core funds.

Providers are encouraged to charge low or no switching fees within their own funds, but may set conditions and limit the number of switches a year .

Where an employer contributes (with or without vesting), the employee chooses the funds and decides on switches.

Transferring to Another Provider (Portability)

Portability is one of PRS's distinct advantages: before retirement age, a member can move accrued benefits to the provider that best suits them.

How it works

The member approaches the transferee (new) provider and completes the PPA's Transfer Form (TF) , stating the funds and units to transfer out and the funds to transfer into.

A transfer may be full or partial , from one or several funds of the transferor provider.

The member does not split units between sub-accounts A and B; the transferor completes those details, applying the 70:30 ratio (70% from sub-account A into sub-account A, 30% from B into B).

If pre-retirement withdrawals have left too little in sub-account B , the transferor may redeem extra units from sub-account A to fund sub-account B at the new provider.

The transferor has 5 business days after accepting a complete TF to verify, redeem and pay the transferee , then uploads the TF to the PPA's portal with fees and prices. If it rejects the TF, it states the reasons on the portal.

Conditions for a transfer

  • Condition Detail
  • Sub-account matching Proceeds from sub-account A must buy units in sub-account A at the new provider; B into B

Waiting period First transfer only after one full year from the first contribution to any fund of the transferor (by member or employer)

  • Frequency No prior transfer from that transferor in the same calendar year
  • Units Enough units in the funds selected
  • Parties Each request involves only two providers
  • One-to-one Each fund transferred out goes into one fund
  • Fees and pricing

Providers may charge only actual and reasonable expenses for transfers and switches, as disclosed.

Redemption charges and transfer fees are deducted from sub-account A.

A transfer fee covering several funds is apportioned (for example an RM25 fee over two funds is RM12.50 each).

Both providers use the price at the next valuation point after the request; there is a time lag , so prices can move during the transfer.

Switching vs Transferring at a Glance

  • Feature Switching Transferring (portability)
  • Between Funds of the same PRS Provider Funds of two different PRS Providers
  • Paperwork The provider's switching form The PPA's Transfer Form , lodged through the new provider

Limits Provider may cap switches per year First transfer after one full year ; one transfer per transferor per calendar year

  • Charges Encouraged to be low or nil Actual and reasonable expenses, deducted from sub-account A
  • Sub-accounts Units keep their A and B allocation A goes to A, B goes to B, with shortfalls in B made up from A
  • Worked Examples (Study Guide)
  • Ishak transfers a whole fund

Ishak holds 1,000 units of Beta Equity Fund (NAV RM0.80) with PRS Beta and transfers them to Alpha Bond Fund (NAV RM2.00) with PRS Alpha. Transfer fee: RM25.

  • Item Sub-account A Sub-account B Total
  • Value redeemed (RM800 at 70:30) RM560 RM240 RM800
  • Less transfer fee (from A) −RM25 — −RM25
  • Amount transferred RM535 RM240 RM775
  • Alpha Bond units bought at RM2.00 267.5 120 387.5 units

Ishak's Alpha Bond holding rises from 1,000 to 1,387.5 units , worth RM2,775 .

Leo's sub-account B shortfall

Leo transfers 450 units of Alpha Bond at RM2.00 ( RM900 ) after earlier withdrawals left only RM100 in that fund's sub-account B.

Required from B: 30% × RM900 = RM270 ; available: RM100.

Shortfall made up from sub-account A: RM270 − RM100 = RM170 .

So RM800 comes out of A (RM630 for A plus RM170 for B) and RM100 out of B, and the new fund receives RM630 in A and RM270 in B, restoring 70:30.

Ahmad's timing

Ahmad's employer began contributing to PRS Bravo on 1 January 20X4 . He may transfer from Bravo from 1 January 20X5 , because one year has passed since the first contribution (employer contributions count). If he also contributed to PRS Delta from 1 October 20X3, he may transfer from Delta in 20X5 too, because it is a different provider and his first Delta transfer that year.