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Regulatory Framework

The PRS regulatory framework is established under the Capital Markets and Services Act (CMSA) 2007 and is regulated and supervised by the Securities Commission Malaysia (SC) to ensure robust regulation and supervision of the PRS industry whilst promoting trust and confidence in the PRS. There is a proper segregation of roles and responsibilities of all key parties in the PRS industry as follows:

Key Components

Suruhanjaya Sekuriti
(Securities Commission Malaysia)

Regulates the PRS industry under the Capital Markets & Services Act 2007 (CMSA). Provides a regulatory environment and promotes the development of the PRS industry.

Roles & Responsibilities

Private Pension Administrator Malaysia
  • Protect members’ interest
  • Provide a life-time central account management, facilitating transactions and promoting efficient administration
  • Acts as a one-stop resource centre
  • Educate the public and promoting awareness on PRS
  • Provide central administration and developing the industry

PRS Providers
  • Exercise the PRS Providers’ powers for a proper purpose and in good faith, in the best interest of the members as a whole
  • Exercise the degree of care and diligence
  • Keep complete and accurate records of all information
  • Not make investments in which it could have a financial interest or derive a benefit without approval of the Scheme Trustee
  • Provide interim reports, annual reports and account statements

PRS Distributors & Consultants
  • PRS Distributors are licensed for dealing in PRS or registered persons under the Capital Markets and Services Act (CMSA) 2007
  • PRS Consultants are representatives of PRS Distributors and need to be registered with FIMM
  • Institutional PRS advisers are licensed bankers to distribute PRS schemes from more than one PRS providers
  • Corporate PRS advisers are financial planning firms that represent and distribute products from more than one PRS Provider and can act on behalf of the contributors
  • PRS Consultants must obtain minimum knowledge of the PRS industry and act with integrity and a high level of professionalism

Scheme Trustees
  • Ensure compliance of PRS Officers and Delegates
  • Provide accurate valuation and pricing
  • Ensure accuracy of all transactions to avoid unnecessary costs or risk to the fund
  • Adequate accounting for all accounts

Scheme Trustees

Each PRS scheme is required to appoint an approved PRS scheme trustee to actively monitor the operation and management of the fund under the scheme by the PRS Provider to safeguard the interests of members. The scheme trustees has a fiduciary duty to ensure that the PRS Provider comply with the scheme’s deed and disclosure document. In addition, the PRS scheme trustee provides custodianship of the PRS fund’s assets.

Trust Deed

A legal documentation that sets the obligation of the Scheme Trustee and the PRS Providers as well as the rights of the members.

Disclosure Document

A document that is intended to provide to PRS subscribers the key characteristics of the fund, obligations of the Provider, risks profile and essential elements of the fund.