Five unit trust consultants face penalties following misconduct revelations in Kuala Lumpur
KUALA LUMPUR – The Federation of Investment Managers Malaysia (FIMM) publicly reprimanded five unit trust scheme (UTS) consultants after investigations confirmed regulatory breaches and ethical lapses. The industry widely describes the case as FIMM Adviser Misconduct. On December 23, FIMM announced sanctions against the individuals and cited violations of its Consolidated Rules (FCR) and Code of Ethics. The measures include registration bans ranging from six months to five years. The bans took effect from November 24. The FIMM Adviser Misconduct enforcement action highlights ongoing oversight within Malaysia’s investment sector and reinforces expectations of strict ethical and legal compliance.
FIMM Adviser Misconduct cases uncovered among consultants linked to major distributors
The misconduct involved five consultants previously or currently associated with Public Mutual Bhd and Kenanga Investors Bhd. Former consultants Cheu Kar Wai and Muhamad Khairulanuar Yusoof submitted falsified academic certificates during their registration process with FIMM. FIMM barred both individuals from registration for two years.
Another individual, Krisnan Kanniappen, also linked to Public Mutual, received a six-month registration ban. Investigators found that he forged the signatures of three investors on investment documents dated April 12, 18, and 20 in 2022. Regulators also required him to attend training focused on the FIMM Code of Ethics.
Serious breaches also involved former Public Mutual consultant Fadli Adha Abu Bakar. Between May and August 2023, he misappropriated RM5,500 from an investor. He later issued falsified documents to misrepresent investment transactions. Regulators imposed a five-year registration ban on him.
Muhammad Afif Ajmal Safaruan also received a five-year ban. He previously worked at Public Mutual and later Kenanga Investors Bhd. The violations included requesting investors to pre-sign and pre-thumb-print investment forms involving RM162,000 between August and November 2022. He later falsified documents to secure financing and credit facilities.
FIMM Adviser Misconduct enforcement highlights regulatory oversight and cooperation
The federation stated that the sanctions form part of its mandate to uphold integrity in financial advisory and investment services. In its official statement, FIMM said the public reprimands send a strong message that it will act against non-compliance with its rules. The federation also collaborates with relevant authorities to ensure regulatory compliance and protect investors’ interests.
Investigators based their findings on document reviews and client interviews. They did not rely on speculative information.
Industry and public response to recent disciplinary measures in unit trust sectors
The disciplinary actions sparked discussions on social media and among industry watchers. Observers said the sanctions reflect a more intense regulatory environment in Malaysia’s financial services sector. Many pointed to weaknesses in client documentation and ethical sales practices.
Investment communities stressed the need for transparency and accountability among unit trust consultants. Industry insiders also said the cases serve as cautionary precedents and support efforts to strengthen standards and compliance protocols within Malaysia’s capital market framework.
Implications for regulatory oversight and trust practices in Malaysian investments
In the short term, the enforcement actions have not affected investor transactions. However, they reaffirm the need for strict monitoring by distributors and regulators. The bans may prompt internal procedural reviews among unit trust distributors in Selangor, Seri Kembangan, Batu Caves, and other key areas.
Over the longer term, these developments may encourage stronger ethics training, better verification processes, and improved governance. These measures aim to prevent similar violations. Overall, FIMM’s initiatives help reinforce investor confidence and support the sustainable growth of Malaysia’s unit trust market.
