FIMM Issues Guidance On The Use Of Simple Language In Unit Trust Prospectuses To Benefit The Public


FIMM issues guidance on the use of simple language in unit trust prospectuses to benefit the public

The guidance is the outcome of the efforts FIMM has taken by working with the Securities Commission Malaysia and key representatives of the investment management industry to improve the quality of information disclosed in the prospectuses of unit trust schemes.

According to FIMM Chief Executive Officer, Nazaruddin Othman, prospectuses that are written and presented in a clear, concise and effective manner will help improve the readability of the documents and facilitate investors to better understand the information disclosed in the documents.

“Using plain and simple language in the documents will enable unit trust management companies to clearly communicate the desired messages to investors more easily and in a friendlier manner.”

“In addition, the use of clear, concise and effective disclosures will enhance the quality of information in prospectuses. This move echoes the Securities Commission’s thrust towards the empowerment of investors to make informed investment decisions”, he added.

The guidance serves as a reference for unit trust management companies to use simple language and adopt effective practices when drafting prospectuses and other disclosure documents. Among others, it covers the use of common everyday words instead of legal, financial and technical jargon; active voice; personal pronouns, and clear and concise sentences.

The guidance is also available on FIMM’s website It will not only help unit trust management companies in drafting their prospectuses, but ultimately benefit the general public who will gain better understanding on unit trust funds being offered.

“As an organisation that is mandated to ensuring the growth of investment management industry, namely unit trusts, FIMM will continue to provide timely and useful guidance to all its members as well as the general public to help them gain better understanding on the funds available for their investments,” concluded Nazaruddin.

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Contact Information:
For further information, please contact:
Tengku Adrian Ismail
Corporate Communication
Tel: +(60)3 – 2093 2600 / +(60)16 – 696 0292

About Federation of Investment Managers Malaysia

The Federation of Investment Managers Malaysia (FIMM) was established in 1993 to support the development of the investment management industry. On 20 January 2011, FIMM was recognised as a Self-Regulatory Organisation (SRO) by Securities Commission Malaysia. As an SRO, FIMM regulates and supervises its members and registered persons to strive for the highest level of integrity and standards of practice that will best serve the investment management industry and promote investor protection.

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