FIMM Reprimands Two Individuals For Breaching Code Of Conduct

KUALA LUMPUR, Oct 19 (Bernama) — The Federation of Investment Managers Malaysia (FIMM) has reprimanded two Unit Trust Scheme (UTS) consultants for breaching its Code of Ethics and Rules of Professional Conduct (Unit Trust Funds). In a statement Monday, it said public reprimands have been imposed on Chooi Pak Hoong for breaching Clauses 3.3.3 and 3.1.3(a) of FIMM’s code of conduct, while Goh Bee Kiat for violating Clause 3.1.3(a). “Clause 3.3.1 of the FIMM Code prohibits UTS consultants from representing more than one principal. Furthermore, it requires UTS consultants to only deal in unit trust funds of his/her principal or those distributed by his/her principal. “The clause also prohibits the making of any arrangements, in whatever manner, to market and distribute unit trust funds of other unit trust management companies or those distributed by other institutional unit trust advisers or corporate unit trust advisers,” it said. The federation added that clause 3.1.3(a) requires a UTS consultant to act with honesty, dignity and integrity at all times. “Additionally, since Chooi is currently not a registered UTS consultant, he has been barred from future registration with FIMM effective Sept 3, 2020,” it said. FIMM also said the denouncements were meant to deter UTS consultants from committing any misconduct and remind them to observe FIMM’s code of conduct when marketing and distributing unit trust funds to protect the interests of the investing public. As a self-regulatory organisation, the FIMM plays a key role in the development of the unit trust industry by actively engaging with members to adopt best practices for investor protection. -- BERNAMA