Public Reprimand (2020 – Zarith)
Kuala Lumpur, 2 July 2020
For immediate release.
PUBLIC REPRIMAND AGAINST ZARITH SOPHIA BINTI MUSADAD (A FORMER UNIT TRUST CONSULTANT – FIMM No: 038-S-20217)
The Federation of Investment Managers Malaysia (“FIMM”) has reprimanded Zarith Sophia Binti Musadad (“Zarith”), a former unit trust scheme (“UTS”) consultant for misconducts/breaches of FIMM’s Code of Ethics and Rules of Professional Conduct (Unit Trust Funds), Second Edition dated 22 January 2013 (“FIMM’s Code”).
Zarith was found to be in breach of Clause 3.1.3(a), Clause 3.1.11(g) and Clause 3.3.5 of FIMM’s Code for committing the following misconducts:
- Received money into personal bank account amounting RM15,000.00 from an investor for the purpose of UTS investment;
- Misappropriated cash amounting to RM5,000.00 out of RM15,000.00 received from the investor by only investing RM10,000.00 under the investor’s name; and
- Allowed the investor to pre-sign the investment transaction forms.
Clause 3.1.3(a) of FIMM’s Code requires UTS consultant at all times, to act with honesty, dignity and integrity.
Clause 3.1.11(g) of FIMM’s Code requires UTS consultants to conduct all dealings with every care, skill and diligence. In this regard, UTS consultants should:
(g) not request or allow an investor to pre-sign (or pre-thumbprint) any form relating to their investment.
Clause 3.3.5 of FIMM’s Code prohibits UTS consultants from accepting cash or have it credited into their personal bank account from the investors for purposes of investment in unit trust funds.
The Public Reprimand was imposed on Zarith to send a strong message to deter other UTCs from committing similar misconducts and to safeguard the interest of the investing public and the industry.
Additionally, Zarith has been barred from future registration with FIMM effective 4 June 2020.
The investing public is reminded to refrain from giving cash or have it credited into UTS or Private Retirement Scheme (“PRS”) consultants’ personal account for investment purposes. The investing public is also advised not to pre-sign any investment application forms and ensure official receipt of investment is received from the Distributor of UTS or PRS. If any detail or information in the receipt is inaccurate, please check with the Distributor.
For more information on matters related to UTS/PRS and investor protection, please visit www.fimm.com.my
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.
For more information about this press release, please contact:
Mr. Jegatheesan Govintharaj
Legal & Regulatory Affairs, FIMM
Tel: 03-2093 2600