Questions & Answers – Private Retirement Scheme (“PRS”)
(A) Registration of PRS Distributor
a) PRS Provider;
b) Institutional Private Retirement Scheme Adviser (“IPRA”); and
c) Corporate Private Retirement Scheme Adviser (“CPRA”).
Question 2: Where can we apply for the relevant license in order for us to market and distribute PRS?
Before you submit your application for registration as PRS Distributor with FIMM, you will have to apply for the Capital Market Services License (“CMSL”) for dealing in private retirement schemes from the Securities Commission Malaysia (“SC”). However, a corporation which is a financial institution specified as “registered person” in the Third Column under Item (1)(g) Part 1 of Schedule 4 of the Capital Markets Services Act (“CMSA”) issued by the SC is exempted from the requirement to apply for CMSL from the SC. Hence, such corporation may proceed to submit your application to FIMM for registration as PRS Distributor.
Question 3: What are the forms and supporting documents that are required for registration of PRS Distributor?
Please visit FIMM’s website at www.fimm.com.my and proceed to “PRS Application Kit” to obtain the information.
Question 4: How and where should we submit our application for registration of PRS Distributor?
You must first complete and submit the online application form through PRS Registration System, which can be access through FIMM’s website at www.fimm.com.my, followed by submission of relevant documents accompanied by a cover letter addressed and delivered by hand, registered post or courier to:
Federation of Investment Managers Malaysia
19-06-1, 6th Floor, Wisma Tune
No. 19, Lorong Dungun
50490 Kuala Lumpur
Question 5: What is the duration taken for FIMM to process the application for registration of PRS Distributor?
FIMM will take ten (10) business days effective from the date of receipt of the completed submission of the application.
Question 6: Is there any possibility for us to cancel our application for registration of PRS Distributor?
Any request for cancellation on the application of registration must be done in a timely manner. FIMM will only accept the application of cancellation prior to any decision made by FIMM. In this case, annual fee shall be refunded but application fee is non-refundable.
Question 7: In any case where we realized that we have furnished FIMM with inaccurate information or omitted to provide FIMM with the relevant supporting documents in regards to our application for registration, what can we do?
You are required to notify FIMM of the rectification in a timely manner. You are strongly advised to ensure all of the information and documents are in order prior to the decision from FIMM. FIMM reserves the rights to reject the application and you may need to apply afresh.
Question 8: Whom can we liaise with for any inquiries pertaining to the registration of PRS Distributor?
Please contact Business Registration Department at 03-2093 2600.
Question 9: When do we have to commence our operations?
Except in the case of a PRS Provider, a PRS Distributor must commence operations within 6 months from the date of registration, failing which such registration will lapse.
Question 10: We are unable to commence operations within the stipulated timeframe, can we apply for extension of time to commence operations?
You may apply for extension of time for commencement of operations in writing to FIMM at least thirty (30) days before the expiry of the 6-month period and supported with strong justifications and other such information requested by FIMM. Please refer to Registration Manual for further information.
Question 11: Are we subject to any audit requirement upon commencement of operations?
Except in the case of PRS Provider, a PRS Distributor is required to undertake a post-registration assessment and a report must be submitted to FIMM at least fourteen (14) days before the expiry of the 6-month period following the commencement of operations. Subsequently, the PRS Distributor is subject to an annual compliance review.
Question 12: Whom can we appoint to conduct the post-registration assessment?
The post-registration assessment may be conducted by a person responsible for compliance functions of the PRS Distributor, where the assessment must be approved by your Board prior to submission to FIMM. Alternatively, you may appoint an external auditor to carry out the assessment.
Question 13: Whom can we appoint as Authorised Representative (“AR”) and Authorised Signatory of our company/institution?
The appointment of the above is under the discretion of your company/institution. You are required to notify FIMM on the appointment, which is supported by a copy of the Board’s resolution approving such appointment.
Question 14: As a PRS Provider, our PRS has been approved by the SC and we intend to launch the PRS soon. Should we notify FIMM on the launch of the new PRS?
Yes, you are required to notify FIMM at least three (3) business days before the PRS is launched. Please refer to the Registration Manual for further details on the process of notification to FIMM for the launch of new PRS.
Question 15: As a PRS Distributor (IPRA/CPRA), do we need to notify FIMM on the PRS that we intend to market and distribute from other PRS Provider?
Except in the case of CPRA who is Insurance and Takful Broker, you are required to notify FIMM at least one (1) business day before the PRS is marketed and distributed by you. For CPRA who is Insurance and Takaful Brokers, you are required to notify FIMM within one (1) business day after the PRS is marketed and distributed by you. Please refer to the Registration Manual for further details on the process of notification to FIMM on the marketing and distribution of PRS.
Question 16: Is there any requirement on the minimum number of distribution arrangement that we must comply with prior to marketing and distribution of PRS of the PRS Provider?
Yes. Please refer to the table below:
|Type of PRS Distributor||Minimum Number of Distribution Arrangement|
|IPRA||An IPRA must have a distribution arrangement or sub-distribution arrangement with one or more of the following:
(a) PRS Provider; or
IPRA are financial institutions specified as “registered persons” under item (1) (g) Part 1 of Schedule 4 of the CMSA are not allowed to enter into sub-distribution arrangement with each other.
|CPRA||A CPRA must have a distribution arrangement or a sub-distribution arrangement which enables it to market and distribute PRS of at least 2 issuers at all times.
However, CPRAs are not allowed to enter into sub-distribution arrangement with IPRAs who are financial institutions specified as “registered persons” under item (1)(g) Part 1 of Schedule 4 of the CMSA.
Question 17: As a PRS Distributor, can we appoint agents and/or employees as our PRS Consultants?
As a PRS Provider or a CPRA, you may appoint independent individuals/agents or your employees as PRS Consultants.
As an IPRA, except in the case of a PRS Provider, a UTMC, a licensed insurance company or a registered takaful operator, you may only appoint your employees as PRS Consultants. An IUTA which is an investment bank or a stockbroking company, you may appoint your remisiers (commissioned CMSRL for dealing in securities) as PRS Consultants.
Question 18: Do we need to pay yearly renewal fee?
Yes, the annual fee shall be due and be payable on or before 31 January of each calendar year. Hence, your registration as PRS Distributor shall continue subject to payment of all fees as prescribe by FIMM.
Question 19: What is the procedure if we were to withdraw our registration as a PRS Distributor?
You must notify FIMM at least 14 business days before the proposed date of cessation. Please refer to the Registration Manual for further details on the process of notification to FIMM on the withdrawal of registration as a PRS Distributor.
The effective date of the withdrawal of registration as PRS Distributor is subject to FIMM satisfies that adequate arrangements have been made to meet all the liabilities and obligations of the PRS Distributor that are outstanding at the time when the notice of cessation was given, including obligations relating to distribution arrangement, appointment of PRS Consultants and investors’ account.
(B) Registration of PRS Consultant
You must fulfill the eligibility requirements and fit and proper criteria as prescribed by FIMM. You will then need to sit for and pass PRS Examination which is conducted by FIMM, unless exempted by FIMM. Once you have passed the PRS Examination and approved by FIMM, you will be registered as PRS Consultant and is eligible to market and distribute PRS.
Question 21: How do I register for PRS Examination?
You will need to decide which PRS Distributor you wish to join prior to any application for PRS Examination. Please visit FIMM’s website at www.fimm.com.my to obtain the listing of PRS Distributors. The PRS Distributor in which you are recruited to will advise you on the relevant procedures and documents as well as applicable fees to be submitted to FIMM. You may also refer to FIMM website at www.fimm.com.my and proceed to “PRS Application Kit” for further details.
Question 22: Can I apply to sit PRS Examination as an independent candidate, without being recruited or employed by a PRS Distributor?
No. You are required to be attached to a PRS Distributor before applying for PRS Examination.
Question 23: What are the documents I need to submit and the fees that are involved if I want to apply for PRS Examination?
The PRS Distributor / your Principal will advise you on the relevant documents and applicable fees to be submitted to FIMM. You may also refer to FIMM website at www.fimm.com.my and proceed to “PRS Application Kit” for further details.
Question 24: Where and when can I sit for PRS Examination?
PRSE is held on a regular basis in various major towns or cities of East and West Malaysia. Please, visit FIMM’s website at www.fimm.com.my for more details on PRS Examination schedules and locations.
Question 25: Can I cancel my application to sit for PRS Examination?
Yes, you are allowed to request for cancellation on your application to sit for PRS Examination before the application is being approved by FIMM or examination’s closing date. However, the PRS Examination fee will not be refunded.
Question 26: Can I change the location, date and time of my PRS Examination session after my application being approved by FIMM?
No. Changes are not allowed after your PRS Examination application has been confirmed by FIMM.
Question 27: Can I postpone my PRS Examination date?
Candidate may request to postpone PRS Examination in the event of the following:
a) Hospitalization of the candidate;
b) Immediate family member (i.e. spouse, children, parent, parent-in-law, grandparent and siblings only); and
c) Natural disaster.
There is strictly no examination postponement for any other reasons. However, you are allowed to re-sit for PRS Examination if you are absent or failed. There will be a re-sit fee.
Question 28: How many times am I allowed to re-sit for PRS Examination?
There is no limit to the number of times to re-sit for PRS Examination.
(C) Exemption from PRS Examination
Please refer to FIMM’s Consolidated Rules for the exemption criteria for PRS Examination.
(D) Termination / Resignation of PRS Consultant
No. You will have to submit your resignation letter to your principal where your principal will then submit the notification of your resignation to FIMM within one (1) business day from the effective date of your resignation.
Question 31: Is there any document I have to submit upon my resignation?
You are required to return the FIMM’s Authorisation Card to your principal.
Question 32: How long would it take for my principal to release me after I have tendered my resignation?
Please refer to your agency agreement or employment contract for further details. You may also check with your principal on the policy and procedure in releasing your registration with FIMM. Your principal will only release you upon your clearance of all the outstanding matters with them.
Question 33: I do not have any outstanding matters with the principal. However I have yet to receive the Letter of Release from my principal. What can I do?
Such request is not within FIMM’s purview. We strongly suggest that you resolve the matter directly with your principal.
(E) Registration of Former PRS Consultant and Variation of Registration of PRS Consultant
Yes, you will need to resign from Company A before you joining Company B.
Question 35: Can I register with more than one PRS Distributor?
No. Dual registration is not allowed. You can only register with one PRS Distributor at one time.
Question 36: I am a former PRS Consultant and passed PRS Examination earlier. Now, I intend re-enter the industry and apply for registration as a PRS Consultant. Am I still required to sit for PRS Examination?
You will be exempted from sitting for PRS Examination provided that you have applied for registration within three (3) years from the date of withdrawal of your registration. However, you need to acquire 16 Continuing Professional Development (“CPD”) points in lieu of re-sitting and passing the PRS Examination.
If you have applied for registration exceeded 3 years from the date of withdrawal of your registration, you are required to sit for PRS Examination again.
Question 37: What are the requirements for variation of registration of PRS Consultant / registration of former PRS Consultant?
Your principal will be able to advise you accordingly. Alternatively, you may refer to FIMM’s Consolidated Rules and Registration Manual for further information.
(F) Renewal of Registration of PRS Consultant
Your application for renewal of registration must make through your principal. Your principal will be able to advise you the process and requirements for renewal of registration. Alternatively, please refer to FIMM’s Consolidated Rules and Registration Manual for further information.
Question 39: When should I submit my application for the renewal of registration of PRS Consultant?
Your registration as a PRS Consultant shall lapse on the 31st December of each calendar year of the registration. Your principal will be able to advise you on the timeline for submission of application for renewal.
Question 40: Am I required to collect the Continuing Professional Development (“CPD”) for the renewal of my registration of PRS Consultant?
You must obtain a minimum of 16 CPD points in a year before an application for renewal of registration will be considered by FIMM. However, if you registered with FIMM after January of the year, the CPD points’ requirements for your first renewal will be calculated on a pro-rata basis as follows:
[X month(s) joined / 12] x 16 points
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(G) Authorisation Cards & PRS Certificate
Yes, the FIMM Authorisation Card as well as a PRS Certificate will be issued to a candidate who has passed PRS Examination, hence registered with FIMM as a PRS Consultant.
Question 42: When can I collect the Authorisation Card and PRS Examination Certificate?
FIMM will issue the Authorisation Card and PRS Examination Certificate approximately three (3) weeks following the approval of your PRS Examination result from FIMM. The card and certificate will be delivered to your principal. Please liaise with your principal to arrange for collection of your card and certificate.
Question 43: Will FIMM be issuing certificate to a candidate who is exempted from sitting for PRS Examination?
Question 44: Do I need to replace the Authorisation Card on a yearly basis?
You are required to replace your Authorisation Card once every five (5) years from the year you registered as PRS Consultant of the current principal. This can be done simultaneously with the renewal of registration of PRS Consultant on the 5th year.
You have registered with ABC Company as a PRS Consultant in June 2015, you are required to replace your Authorisation Card in year 2020 during your renewal of registration at the same year.
You have registered with ABC Company as a PRS Consultant in June 2015, subsequently you resigned and joined DEF Company in March 2016, you are required to replace your Authorisation Card in year 2021 during your renewal of registration at the same year.
Question 45: Can I request for the replacement of Authorisation Card / PRS Certificate in the event I loss or misplace the card / certificate?
Yes, you can request for replacement through your principal. Please check with your principal on the charges imposed on the request.
Question 46: I am no longer a PRS Consultant and I have misplaced my PRS Examination certificate. I would like to request for replacement of my PRS Examination certificate, what is the procedure to apply for replacement of the certificate and how much do I need to pay?
You have to submit your application in writing to FIMM together with a payment of RM6.00 (inclusive of GST of 0%) by way of cheque or bank draft only. The cheque or bank draft must be made payable to the “Federation of Investment Managers Malaysia”.
(H) Payment of Fees
Yes. Please refer to Registration Manual or visit FIMM’s website at www.fimm.com.my and proceed to PRS Application Kit for details on fees imposed for various types of registration of PRS Distributor.
Question 48: Is there any fee imposed for the registration of PRS Consultant?
Yes. Please refer to Registration Manual or visit FIMM’s website at www.fimm.com.my and proceed to PRS Application Kit for details on fees imposed for various types of channel for registration of PRS Consultants.
Please visit FIMM’s website at www.fimm.com.my and proceed to PRS Application Kit to retrieve the relevant application forms.
Question 50: What happens to my PRS Consultant registration if I am declared as a bankrupt?
Your registration as a PRS Consultant will be revoked.
Question 51: I have been discharged as a bankrupt. I wish to re-join to the industry and register as PRS Consultant again. What should I do?
You may re-join the industry as a PRS Consultant when you have been formally discharged as a bankrupt. You are required to provide the necessary documentary evidence(s) to substantiate the bankruptcy discharged status to FIMM through you principal. Your principal will also advise you the necessary requirements for your application of registration as a PRS Consultant.
Question 52: I wish to apply for registration as a PRS Consultant. Is there any requirement imposed by FIMM that I must first register as a UTS Consultant before I can be registered as a PRS Consultant?
Question 53: Can I register as PRS Consultant of Company ABC and UTS Consultant of Company DEF at the same time?
Yes. There is no restriction imposed by FIMM on this matter.
Question 54:What are the things that I should be aware of after joining the industry as a PRS Consultant?
You will be subject to a bankruptcy screening on a periodic basis, which forms part of the “fit and proper” assessment. You will also be required to execute the “Statutory Declaration for Renewal of Registration” on a biennially basis and submit to your principal.
You are truthfully declare in all the relevant Statutory Declarations (“SD”), failing which your registration of PRS Consultant shall be revoked if you are found to have made any false declarations. You are also responsible to notify your principal immediately in the event you have been declared as a bankrupt.
Question 55: I am applying for registration of PRS Consultant and UTS Consultant with the same principal, do I need to sign 2 copies of SD?
No, you may execute one SD only.
Question 56: Am I required to submit a new SD if I want to re-sit for PRS Examination?
Generally, the SD validity must not be more than 12 months from the date of attestation of the SD. Please refer to the scenarios stipulated below:
Mr. Umar sat for PRS Examination in June 2014 but failed the examination. He then re-sit for PRS Examination in March 2015 and passed the examination. The SD submitted by Mr. Umar when he first submitted his application for PRS Examination was in June 2014. He is not required to submit a fresh SD when he re-sits for PRS Examination.
In relation to Scenario 1, Mr. Umar has registered with FIMM as PRS Consultant with effect from March 2015. He is required to submit SD for renewal of registration by December 2016 and thereafter on a biennially basis
Mr. Latif sat for PRS Examination in February 2015 but failed the examination. He then re-sit for PRS Examination in March 2016 and passed the examination. The SD submitted by Mr. Umar when he first submitted his application for PRS Examination was in February 2015. He is required to submit a fresh SD when he re-sits for PRS Examination.
In relation to Scenario 2, Mr. Latif has registered with FIMM as PRS Consultant with effect from March 2016. He is required to submit SD for renewal of registration by December 2017 and thereafter on a biennially basis.
Question 57: I have registered as PRS Consultant in year 2014 and UTS Consultant in year 2015 with Company X. I understand that I need to sign SD for renewal of my registration on biennially basis. Can I sign one SD only for the purpose of renewal of registration for both PRS Consultant and UTS Consultant?
Yes, you may sign one SD only. In this case your renewal of registration of PRS Consultant will be due for signing of SD by December 2015. Hence, you may submit the SD by indicating that the SD is for the purpose of both registration of PRS Consultant and UTS Consultant. Subsequently, you will only need to submit one SD on a biennially basis.
Question 58: Can we appeal against any rejection of application for registration by FIMM?
Yes, you may appeal within fourteen (14) business days of being notified of the rejection. An appeal shall be in writing and must include grounds of the appeal. Please be advised that the decision of FIMM on an appeal is final and binding.
Question 59: Another few more days I am going to attain the age of 21, can I proceed to submit my application for registration as PRS Consultant now?
No, you must attain the age of 21 before you can submit your application for registration as PRS Consultant.
Question 60: As a PRS Consultant, can I directly liaise with FIMM to obtain any information pertaining to my application, results, etc.?
You are advised not to contact FIMM directly pertaining to your application, results, etc. FIMM will not entertain any request from the PRS Consultant and shall not be responsible for any misunderstanding arising from such communications.
Question 61: When will the computerised PRS Examination be launched?
FIMM will notify the industry as and when the computerised PRS Examination is up and available.