KUALA LUMPUR: The Federation of Investment Managers Malaysia (FIMM) has reprimanded former unit trust consultants (UTC) Tan Chee Num and Norhazlinda Mohd Basir for misconducts/breaches of FIMM’s Code of Ethics and Rules of Professional Conduct (Unit Trust Funds), Second Edition dated Jan 22, 2013.
Tan was found to be in breach of Clause 3.1.3(a), Clause 3.1.7(a) and Clause 3.3.5 of FIMM’s Code for misappropriating a potential investor’s money amounting to RM5,000 that was credited to Tan’s personal bank account for purposes of investment in a unit trust fund. Further, Tan misrepresented himself by showing the potential investor a business card not related to Kenanga Investors Bhd (KIB) while being registered as a UTC of KIB.
Norhazlinda was found to be in breach of Clause 3.1.3(a) and 3.3.5 of FIMM’s Code for making redemptions amounting to RM10,205.85 and RM16,293.31 respectively from an investor’s unit trust investment account and caused the money to be credited into her personal bank account instead of the investor’s bank account.
Clause 3.1.3(a) of FIMM’s Code requires a UTC, at all times, to act with honesty, dignity and integrity. Clause 3.1.7(a) of FIMM’s Code requires a UTC to not misrepresent or recklessly represent his qualifications or that of the principal he represents. Clause 3.3.5 of FIMM’s Code requires a UTC to neither accept cash nor have it credited into their personal bank account from investors for purposes of investment in unit trust funds.
Tan’s misconduct was identified and notified by KIB to FIMM, while Norhazlinda’s misconduct was identified and notified by Principal Asset Management Bhd (formerly CIMB Principal Asset Management Bhd) to FIMM, which have resulted in FIMM taking a disciplinary action against both individuals.
In addition, since Tan and Norhazlinda are currently not a UTC registered with FIMM, they have been barred from future registration with FIMM effective July 10, 2019.
The investing public is reminded to refrain from giving cash or have it credited into unit trust or private retirement schemes consultants’ personal account for investment purposes. The investing public is also advised not to pre-sign any investment application forms and ensure receipt of investment statement upon investing.
