FAQs for UTS Distributors and Consultants

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Questions & Answers – Unit Trust Scheme (“UTS”)

(A) Registration of UTS Distributor

Question 1: What are the categories of registration for UTS Distributor?

A) Unit Trust Management Company (“UTMC”);
B) Institutional Unit Trust Adviser (“IUTA”); and
C) Corporate Unit Trust Adviser (“CUTA”).

Question 2: Where can we apply for the relevant license in order for us to market and distribute UTS?

Before you submit your application for registration as UTS Distributor with FIMM, you will have to apply for the Capital Market Services License (“CMSL”) for dealing in securities or dealing in securities restricted to unit trust 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 UTS Distributor.

Question 3: What are the forms and supporting documents that are required for registration of UTS Distributor?

Please visit FIMM’s website at www.fimm.com.my and proceed to “UTS Application Kit” to obtain the information.

Question 4: How and where should we submit our application for registration of UTS Distributor?

You must first complete and submit the online application form through Internet Investment Information (“Iᶟ”) 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:

Head of Business Registration Department
Federation of Investment Managers Malaysia
19-06-1, 6th Floor, Wisma Tune
No. 19, Lorong Dungun
Damansara Heights
50490 Kuala Lumpur

Question 5: What is the duration taken for FIMM to process the application for registration of UTS Distributor?

Except for the case of UTMC, FIMM will take ten (10) business days effective from the date of receipt of the completed submission of application. In the case of UTMC, who is also Member of FIMM, the application for Membership shall be considered by FIMM’s Board of Director (“Board”), where the duration of approving the application of Membership is subject to the earliest available date of Board meeting.

Question 6: Is there any possibility for us to cancel our application for registration of UTS 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 UTS 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 UTMC, a UTS Distributor must commence its operations within six (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 UTMC, a UTS 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 UTS 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 UTS 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 UTMC, our UTS has been approved by the SC and we intend to launch the UTS soon. Should we notify FIMM on the launch of the new UTS?

Yes, you are required to notify FIMM at least three (3) business days before the UTS is launched. Please refer to the Registration Manual for further details on the process of notification to FIMM for the launch of new UTS.

Question 15: As a UTS Distributor (IUTA/CUTA), do we need to notify FIMM on the UTS that we intend to market and distribute from other UTMC?

Yes, you are required to notify FIMM at least one (1) business days before the UTS 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 UTS.

Question 16: Is there any requirement on the minimum number of distribution arrangement that we must comply with prior to marketing and distribution of UTS of the UTMC?

Yes. Please refer to the table below:

Type of UTS Distributor Minimum Number of Distribution Arrangement
IUTA An IUTA must have a distribution arrangement or sub-distribution arrangement with one or more of the following:

(a) UTMC;
(b) An online provider; or
(c) An operator.

IUTAs who 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.

CUTA A CUTA must have a distribution arrangement or a sub-distribution arrangement which enables it to market and distribute UTS of at least 2 issuers including an operator at all times.

CUTAs are not allowed to enter into sub-distribution arrangement with IUTAs who are financial institutions specified as “registered persons” under Item (1) (g) Part 1 of Schedule 4 of the CMSA.

Question 17: As a UTS Distributor, can we appoint agents and/or employees as our UTS Consultant?

As a UTMC or a CUTA, you may appoint independent individuals/agents or your employees as UTS Consultants.

As an IUTA, except in the case of a UTMC of PRS Provider, you may only appoint your employees as UTS Consultants. An IUTA which is an investment bank or a stockbroking company, you may appoint your remisiers (commissioned CMSRL for dealing in securities) as UTS Consultants.

Question 18: Do we need to pay yearly renewal fee?

Yes, the Annual Membership Subscription Fee (“AMSF”) or annual fee shall be due and be payable on or before 31 January of each calendar year. Hence, your Membership or registration as UTS 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 UTS 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 UTS Distributor.

The effective date of the withdrawal of registration as UTS Distributor is subject to FIMM satisfies that adequate arrangements have been made to meet all the liabilities and obligations of the UTS Distributor that are outstanding at the time when the notice of cessation was given, including obligations relating to distribution arrangement, appointment of UTS Consultants and investors’ account.

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(B) Registration of UTS Consultant

Question 20: What should I do if I want to market and distribute UTS?

You must fulfill the eligibility requirements and fit and proper criteria as prescribed by FIMM. You will then need to sit for and pass Computerised Unit Trust Examination (“CUTE”) which is conducted by FIMM, unless exempted by FIMM. Once you have passed the CUTE and approved by FIMM, you will be registered as UTS Consultant and is eligible to market and distribute UTS.

Question 21: How do I register for CUTE?

You will need to decide which UTS Distributor you wish to join prior to any application for CUTE. Please visit FIMM’s website at www.fimm.com.my to obtain the listing of UTS Distributors. The UTS 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 “UTS Application Kit” for further details.

Question 22: Can I apply to sit for CUTE as an independent candidate, without being recruited or employed by a UTS Distributor?

No. You need to be attached to UTS Distributor before applying for CUTE.

Question 23: What are the documents I need to submit and the fees that are involved if I want to apply for CUTE?

The UTS 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 “UT Application Kit” for further details.

Question 24: Where and when can I sit for CUTE?

CUTE 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 CUTE schedules and locations.

Question 25: Can I cancel my application to sit for CUTE?

Yes, you are allowed to request for cancellation on your application to sit for CUTE before the application is being approved by FIMM or CUTE’s closing date.

Question 26: Can I change the location, date and time of my CUTE session after my application being approved by FIMM?

No. Changes are not allowed after your CUTE application has been confirmed by FIMM.

Question 27: Can I postpone my CUTE date?

Candidate may request to postpone CUTE 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 CUTE 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 CUTE?

There is no limit to the number of times to re-sit for CUTE.

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(C) Exemption from CUTE

Question 29: In what circumstances can I be exempted to sit for CUTE?

Please refer to FIMM’s Consolidated Rules for the exemption criteria for CUTE.

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(D) Termination / Resignation of UTS Consultant

Question 30: Can I submit my resignation letter to FIMM directly?

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 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?

You may request in writing for FIMM’s assistance to obtain the Letter of Release through your new principal. This request should only be made after ten (10) working days from the date of submission of the Letter of Resignation. FIMM will then follow up with your former principal for the release of your registration. Your former principal is required to respond to FIMM within fourteen (14) working days stating the reason of non-release of your registration, failing which FIMM will assume your former principal has no objection in releasing you and will proceed to terminate your status as UTS Consultant of the former principal.

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(E) Registration of Former UTS Consultant and Variation of Registration of UTS Consultant

Question 34: If I am recruited as a UTS Consultant by Company A, can I move on to Company B?

Yes, you will need to resign from Company A before joining Company B.

Question 35: Can I register with more than one UTS Distributor?

No. Dual registration is not allowed. You can only register with one UTS Distributor at one time.

Question 36: I am a former UTS Consultant and passed CUTE earlier. Now, I intend re-enter the industry and apply for registration as a UTS Consultant. Am I still required to sit for CUTE?

You will be exempted from sitting for CUTE 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 CUTE.

If you have applied for registration exceeded 3 years from the date of withdrawal of your registration, you are required to sit for CUTE again.

Question 37: What are the requirements for variation of registration of UTS Consultant / registration of former UTS Consultant?

Your principal will be able to advise you accordingly. Alternatively, please refer to FIMM’s Consolidated Rules and Registration Manual for further information.

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(F) Renewal of Registration of UTS Consultant

Question 38: How do I renew my registration of UTS Consultant with FIMM?

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 UTS Consultant?

Your registration as a UTS 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: How many CPD points do I have to collect to renew my registration as a UTS 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 & CUTE Certificate

Question 41: Will FIMM be issuing Authorisation Card and CUTE Certificate for the candidate who has passed CUTE?

Yes, the FIMM Authorisation Card as well as a CUTE Certificate will be issued to a candidate who has passed CUTE, hence registered with FIMM as a UTS Consultant.

Question 42: When can I collect my Authorisation Card and CUTE Certificate?

FIMM will issue the Authorisation Card and CUTE Certificate approximately three (3) weeks following the approval of your CUTE 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 CUTE?

No.

Question 44: Do we need to replace the Authorisation Card on a yearly basis?

Yes, the replacement of your Authorisation Card is done simultaneously with the renewal of registration of UTS Consultant on a yearly basis.

Question 45: Can I request for the replacement card / CUTE 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 UTS Consultant and I have misplaced my CUTE certificate. I would like to request for replacement of my CUTE 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 RM6.36 (inclusive of GST of 6%) by way of cheque or bank draft only. The cheque or bank draft must be made payable to the “Federation of Investment Managers Malaysia”.

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(H) Payment of Fees

Question 47: Is there any fee imposed for the registration of UTS Distributor?

Yes. Please refer to Registration Manual or visit FIMM’s website at www.fimm.com.my and proceed to “UTS Application Kit” for details on fees imposed for various types of registration of UTS Distributor.

Question 48: Is there any fee imposed for the registration of UTS Consultant?

Yes. Please refer to Registration Manual or visit FIMM’s website at www.fimm.com.my and proceed to “UTS Application Kit” for details on fees imposed for various types of channel for registration of UTS Consultants.

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(I) General

Question 49: Where can we retrieve the application form for the registration of UTS Distributor / UTS Consultant?

Please visit FIMM’s website at www.fimm.com.my and proceed to “UTS Application Kit” to retrieve the relevant application forms.

Question 50: What happen to my UTS Consultant registration if I am declared as a bankrupt?

Your registration as UTS Consultant will be revoked.

Question 51: I have been discharged as a bankrupt. I wish to re-join to the industry and register as UTS Consultant again. What should I do?

You may re-join the industry as a UTS 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 UTS Consultant.

Question 52: Can I register as UTS Consultant of Company ABC and PRS Consultant of Company DEF at the same time?

Yes. There is no restriction imposed by FIMM on this matter.

Question 53: What are the things that I should be aware of after joining the industry as a UTS 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 UTS 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 54: I am applying for registration of UTS Consultant and PRS Consultant with the same principal at the same time, do I need to sign 2 copies of SD?

No, you may execute one SD only.

Question 55: Am I required to submit a new SD if I want to re-sit for CUTE?

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:

Scenario 1:
Mr. Ali sat for CUTE in June 2014 but failed the examination. He then re-sit for CUTE in March 2015 and passed the examination. The SD submitted by Mr. Umar when he first submitted his application for CUTE was in June 2014. He is not required to submit a fresh SD when he re-sits for CUTE.

In relation to Scenario 1, Mr. Ali has registered with FIMM as UTS 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.

Scenario 2:
Mr. Salleh sat for CUTE in February 2015 but failed the examination. He then re-sit for CUTE in March 2016 and passed the examination. The SD submitted by Mr. Salleh when he first submitted his application for CUTE was in February 2015. He is required to submit a fresh SD when he re-sits for CUTE.

In relation to Scenario 2, Mr. Salleh has registered with FIMM as UTS 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 56: I have registered as UTS Consultant in year 2014 and PRS Consultant in year 2015 with Company Y. 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 UTS Consultant and PRS Consultant?

Yes, you may sign one SD only. In this case your renewal of registration of UTS 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 UTS Consultant and PRS Consultant. Subsequently, you will only need to submit one SD on a biennially basis.

Question 57: 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 58: Another few more days I am going to attain the age of 21, can I proceed to submit my application for registration as UTS Consultant now?

No, you must attain the age of 21 before you can submit your application for registration as UTS Consultant.

Question 59: As a UTS 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 UTS Consultant and shall not be responsible for any misunderstanding arising from such communications.

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