PRS Providers are entities that are licensed by the Securities Commission Malaysia (SC) to provide and manage private retirement schemes. PRS Providers must manage the schemes according to the deed and disclosure documents of the schemes. PRS Providers owe a duty of care to the members of the schemes to observe high standards of integrity and fair dealing in administering the PRS and managing the funds to the best interest of the members of the schemes.
To qualify as a PRS Provider, the company must fulfilled stringent criteria as set out by the SC. The promotion of high governance is among the main tenet underlying such eligibility and operating requirements that include fund management expertise and track record; a strong balance sheet and governance structure as well as good professional standing.
Registration of PRS Provider
A PRS Provider who intends to market and distribute private retirement schemes and who holds a CMSL to carry out the regulated activity of dealing in private retirement schemes shall register with FiMM before commencing Operation.
Eligibility for registration of PRS Provider
As prescribed under subsection 139P(1) of the CMSA, only a PRS Provider approved by the SC under subsection 139Q(3) of the CMSA can establish, offer or provide a private retirement scheme or hold himself out as establishing, offering or providing a private retirement scheme. Such Corporations who hold a valid CMSL approved by SC to carry out the regulated activity of dealing in private retirement schemes is eligible to register as a PRS Provider..
Submission for Registration as PRS Provider
For submission of documentation for the application of registration as PRS Provider,please click here.
Note: Unless all information requested is provided, the application shall not be processed. FIMM may request for additional information/documentation in relation to any such matter.
PRS Provider Fee Structure
PRS Provider Application Fee
An application for registration must be accompanied by non-refundable Application Fees of RM 5,300 (inclusive of GST 6%) and Annual Fees of RM 10,600 (inclusive of GST 6%). This Application and Annual Fees will be waived if the applicant is existing UTMC registered with FIMM.
PRS Provider Annual Fee
- For PRS Provider which are existing UTMC: Asset Under Management (“AUM”) factor (unit trust schemes & wholesale funds & private retirement schemes).
- For PRS Provider which has no existing registration: AUM factor (private retirement schemes).
- Minimum Annual PRS Provider Fee: RM10,600 (inclusive of GST 6%)
- The PRS Provider annual fee is payable in January of each year.
- PRS Provider Annual Fee is the total of:
1. AUM factor which is calculated based on AUM and subject to a minimum of RM 10,600 (inclusive of GST 6%);
2. PRS Consultant Factor: RM 53 (inclusive of GST 6%) per PRS Consultant (without card fee); or
3. PRS Consultant Factor: RM 56.18 (inclusive of GST 6%) per PRS Consultant (with card fee);
The AUM is classified into 2 fund groups (Group A and Group B) as follows:
|Group A||Include fixed-income or bond funds,money market funds,capital guaranteed/protected funds and other funds. As a general guide,these funds do not charge and annual management fee (include profit sharing) of more than 1%.|
|Group B||Includes funds that are not classified under Group A such as equity funds and mixed-asset funds.|
AUM Factor is a total of= (Levy factor of Group A x AUM) + (Ley factor of Group B x AUM)
The Levy factor is set out below:
|AUM||Levy factor (per RM 1mil)|
|Group (A) RM||Group (B) RM|
|First RM 50 mil||20.00||80.00|
|Next RM 100 mil||13.33||53.33|
|Next RM 500 mil||8.89||35.56|
|Next RM 1,000mil||5.92||23.70|
|Next RM 2,000mil||3.95||15.80|
a) PRS Providers that are not UTMC are required to pay Annual Fee. Determination of Annual Fee will be based on asset under management (“AUM”) of the private retirement schemes (PRS). If the AUM is less than RM50 million,the minimum fees of RM 10,600 (inclusive of GST 6%) shall apply.
b) PRS Providers that are UTMC are required to pay Annual Membership Subscription Fee (AMSF). Determination of AMSF will be based on AUM of PRS calculated with the AUM of unit trust scheme and wholesales funds (if any). If the AUM is less than RM50 million,the minimum fees of RM10,600 (inclusive of GST 6%) shall apply.