91) Investor Challenge # 6 -No Trust in the Product
Investor will never said it out but this may be one the main reason they refused to invest.
They have no trust in the product.
There are so many news of scams and failed products. Many investors had lost money and make the other investors to be cautious of anything unfamiliar.
In dealing with Unit Trust, there are many rules, regulations and laws. Let your clients and friends know about the various organizations that are involved to regulate and protect the investors' money.
Below are some of the building trust factors in the Malaysia's Unit Trust Industry:
a) Capital Market and Services Act (CMSA) 2007
The is the law that governs the Capital Market in Malaysia. This includes the Unit Trust and Private Retirement Schemes.
b) Securities Commission
The Securities Commission have many strict rules on many things. The Securities Commission checks and approves the people and organizations in the Capital Market industry.
c) Bank Negara
The Bank Negara Malaysia or the Central Bank of Malaysia also have many regulations regarding the financial products and services.
d) Independent Auditors.
The Unit Trust Management Company has to appoint external independent Auditors to check the accounts and practices.
e) Scheme Trustee
Each Unit Trust fund has an independent Trustee to be the custodian of the funds asset. The Scheme Trustee has to be independent from the Unit Trust Management Company (UTMC) and other companies involved in the Unit Trust scheme.
f) Federation of Investment Managers Malaysia (FIMM)
The Federation of Investment Managers Malaysia registers all members involved in the Unit Trust industry. They also regulates the Unit Trust Management Companies and Unit Trust Consultants (UTC).
g) Computerized Unit Trust Exam (CUTE Exam)
There is minimum required "O" Level or SPM exam qualifications with credits in Mathematics and one language. All Unit Trust Consultants (UTC) also have to study and pass the CUTE Exam before allowed to become a UTC.
The is the law that governs the Capital Market in Malaysia. This includes the Unit Trust and Private Retirement Schemes.
b) Securities Commission
The Securities Commission have many strict rules on many things. The Securities Commission checks and approves the people and organizations in the Capital Market industry.
c) Bank Negara
The Bank Negara Malaysia or the Central Bank of Malaysia also have many regulations regarding the financial products and services.
d) Independent Auditors.
The Unit Trust Management Company has to appoint external independent Auditors to check the accounts and practices.
e) Scheme Trustee
Each Unit Trust fund has an independent Trustee to be the custodian of the funds asset. The Scheme Trustee has to be independent from the Unit Trust Management Company (UTMC) and other companies involved in the Unit Trust scheme.
f) Federation of Investment Managers Malaysia (FIMM)
The Federation of Investment Managers Malaysia registers all members involved in the Unit Trust industry. They also regulates the Unit Trust Management Companies and Unit Trust Consultants (UTC).
g) Computerized Unit Trust Exam (CUTE Exam)
There is minimum required "O" Level or SPM exam qualifications with credits in Mathematics and one language. All Unit Trust Consultants (UTC) also have to study and pass the CUTE Exam before allowed to become a UTC.
h) Continuous Professional Development (CPD)
All UTCs are required to complete a few required trainings before allowed to promote the Unit Trust funds. Many trainings are organized by the UTMC to keep improving the UTC knowledge and skills. The CPD hours are required before a UTC is allowed to renew his or her Unit Trust "license". This is to ensure continuous learning of new skills and knowledge.
All UTCs are required to complete a few required trainings before allowed to promote the Unit Trust funds. Many trainings are organized by the UTMC to keep improving the UTC knowledge and skills. The CPD hours are required before a UTC is allowed to renew his or her Unit Trust "license". This is to ensure continuous learning of new skills and knowledge.
i) Internal Audit and Compliance departments.
The Unit Trust Management Company (UTMC) has internal auditors and compliance department to check and supervise the daily UTMC operations.
The Unit Trust Management Company (UTMC) has internal auditors and compliance department to check and supervise the daily UTMC operations.
j) Long History
Unit Trust industry in Malaysia started since 1959. So, the industry is not something new.
k) Many Investor Accounts
There are more than 18,000,000 Unit Trust Accounts as of 30 Apr 2017. There are so many people already invested in the Unit Trusts.
l) Huge Market Invested
There are more than RM405 Billion of Net Asset Value in the Unit Trust industry as of 30 Apr 2017
Unit Trust industry in Malaysia started since 1959. So, the industry is not something new.
k) Many Investor Accounts
There are more than 18,000,000 Unit Trust Accounts as of 30 Apr 2017. There are so many people already invested in the Unit Trusts.
l) Huge Market Invested
There are more than RM405 Billion of Net Asset Value in the Unit Trust industry as of 30 Apr 2017
Source:https://www.fimm.com.my/industry-statistics/quick-statistics/
Unit Trust industry in Malaysia has a long history with many investors already invested for a long time. In the long term, Unit Trust had shown that the investments grew in value.
With so many rules, regulations and a long history with a large amount already invested, the potential, new and existing investors will have the Confidence and TRUST in the Unit Trust investment products.
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