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7B.11 Unclaimed Monies, Death of a Member and PRS Nomination

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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.11 Unclaimed Monies, Death of a Member and PRS Nomination

Key Takeaways Explain This Topic AI

Unclaimed accrued benefits may be paid to the Registrar of Unclaimed Moneys only if there has been no transaction for more than 12 months after the member's 100th birthday, and only with the PPA's approval.

PRS nomination has been available since 1 August 2017 to members who are Malaysian citizens or foreigners with permanent residence in Malaysia.

A member may nominate up to six individuals, including minors but not organisations, and the allocations must total 100%.

A nomination form must be witnessed by a person of sound mind aged 18 or above who is not a nominee, a nominee's spouse, an employee of the PPA or PRS Provider, or a PRS Consultant.

A nomination is revoked by the death of all nominees, a revocation form, a new nomination, or a nominee's failure to submit the withdrawal form within one year of a Muslim member's death.

Last updated: October 2026

Dormant Accounts and Unclaimed Monies

The PRS Provider must keep a member's account open even if it becomes dormant (no money received and no movement between funds for a period).

  • Rule Detail
  • Trigger No transaction or instruction in any PRS for more than 12 months after the member reaches age 100

Action The Scheme Trustee may transfer the unclaimed accrued benefits to the Registrar of Unclaimed Moneys under the Unclaimed Moneys Act 1965

  • Approval The PRS Provider must first obtain the PPA's approval
  • When a Member Dies

The member's personal representative (executor or administrator) or nominee applies to the PRS Provider for withdrawal.

Documents such as the probate, letters of administration or Sijil Faraid go to the provider as soon as practicable and are submitted to the PPA.

After the PPA authorises , the provider pays the proceeds within 7 business days .

PRS Nomination

Since 1 August 2017 , members can nominate people to receive their accrued benefits on death.

Who may nominate, and whom

  • Rule Detail
  • Who may nominate A member who is a Malaysian citizen or a foreigner with permanent residence in Malaysia

Who may be a nominee Individuals only (not welfare bodies, organisations or societies); a minor may be a nominee

  • How many Up to six nominees
  • Allocation The member states each nominee's percentage; the total must be 100%
  • Scope One nomination applies to all the member's PRS accounts , across providers

When effective When a duly completed and witnessed form is received by the PPA or a PRS Provider, whichever is earlier

The witness

The form must be witnessed by a person of sound mind who is at least 18 and is not :

  • a nominee ;
  • the spouse of a nominee ;
  • an employee of the PPA or a PRS Provider ; or

a Consultant of a PRS Provider .

Study guide scenario

Adam holds 500 units (RM500) with Provider ABC and 500 units (RM500) with Provider XYZ. He nominates his wife for 60% and his brother for 40% . On his death:

  • Wife (60%) Brother (40%)
  • Provider ABC – Fund 1 300 units (RM300) 200 units (RM200)
  • Provider XYZ – Fund 2 300 units (RM300) 200 units (RM200)

Each nominee submits a withdrawal-upon-death form , a certified copy of the death certificate and their own identification document .

Revoking a nomination

A nomination is revoked:

  • by the death of all nominees during the member's lifetime;
  • by submitting a revocation form ;
  • by making a new nomination ; or

where a nominee fails to submit the withdrawal form within one year of a Muslim member's death .

Under the current PRS Guidelines, a nomination cannot be revoked by a will or any other means. For a Muslim member , a nominee acts as administrator; if a nominee is legally incapable of acting as administrator, that nomination is deemed revoked without affecting other nominees. If a nominee dies before the member and no new nomination is made, that nominee's share goes to the member's estate .

Nomination, Will or Nothing?

Situation What happens to the PRS benefits on death

Valid nomination in force Paid to the nominees in the stated percentages after the PPA authorises (for a Muslim member, the nominee acts as administrator)

Nomination revoked, or no nomination Paid to the lawful executor or administrator of the estate, which usually takes longer (probate, letters of administration or Sijil Faraid)

A will names different beneficiaries The will does not revoke a PRS nomination; only the methods listed above revoke it

A nominee died before the member and was not replaced That nominee's share goes to the member's estate

Because nominations speed up payment and apply across all of a member's PRS accounts, Consultants should remind members to make and update them after life events such as marriage, divorce or the birth of a child.

Applying It

Puan Hasnah, a Malaysian, wants to nominate her husband, her two children aged 12 and 15, and a mosque welfare fund, and asks her PRS Consultant to witness the form. The Consultant should explain that:

  • her husband and both children (minors are allowed) can be nominees;
  • the welfare fund cannot be a nominee, as nominees must be individuals;

the Consultant cannot witness the form, as PRS Consultants are excluded; a suitable witness is any sane adult who is not a nominee, a nominee's spouse, a PPA or provider employee, or a PRS Consultant; and

the percentages must add up to 100%, and the nomination will cover all her PRS accounts.