Five unit trust consultants in Malaysia face reprimands over breaches of FIMM rules
KUALA LUMPUR – On 23 December 2025, the Federation of Investment Managers Malaysia (FIMM) publicly reprimanded five unit trust scheme (UTS) consultants. The federation took action after investigations found breaches of its Consolidated Rules (FCR) and Code of Ethics. The misconduct included document falsification and misappropriation of funds. FIMM imposed registration bans ranging from six months to five years, effective from 24 November 2025. These FIMM adviser misconduct cases involved former consultants linked mainly to Public Mutual Bhd and highlighted ongoing regulatory compliance challenges in Malaysia’s unit trust industry.
The sequence of FIMM adviser misconduct unfolded over several years and affected investor confidence in unit trust transactions
The consultants under reprimand include Cheu Kar Wai and Muhamad Khairulanuar Yusoof, both former Public Mutual UTS consultants. They submitted falsified academic certificates during their registration applications with FIMM. As a result, FIMM barred both individuals from registration for two years.
Another former Public Mutual consultant, Krisnan Kanniappen, received a six-month registration ban. Investigations revealed that he forged the signatures of three investors on investment documents dated 12, 18, and 20 April 2022. FIMM also required him to attend training on the FIMM Code of Ethics.
Two consultants faced more serious penalties. Fadli Adha Abu Bakar, also formerly with Public Mutual, accepted RM5,500 in cash from an investor between May and August 2023. He later issued falsified documents to suggest that unit trust investments had been made. FIMM imposed a five-year registration ban on him.
Muhammad Afif Ajmal Safaruan, who previously worked with Public Mutual and later Kenanga Investors Bhd, also received a five-year ban. He required an investor to pre-sign and pre-thumb-print investment forms involving RM162,000 between August and November 2022. He later falsified documents to apply for financing and credit facilities. These incidents highlighted multiple breaches of investor trust and regulatory compliance within Malaysia’s unit trust sector.
FIMM stresses enforcement, transparency, and investor protection
FIMM stated that the public reprimands serve as a strong deterrent against non-compliance. The federation confirmed that its disciplinary committee conducted thorough investigations before imposing sanctions. FIMM added that it continues to monitor the market closely and will take enforcement action when necessary to protect investors and maintain industry integrity.
Reactions from public and industry indicate ongoing concerns about ethical practices
Following the announcement, public discussions emerged on social media and within the investment community. Many observers raised concerns about the ethics and professionalism of unit trust consultants. Analysts noted that the enforcement actions reflect stronger regulatory oversight, particularly in areas vulnerable to document falsification and fund mismanagement.
Industry observers also stressed that such actions remain critical as Malaysia’s retail investment market expands. They noted that adviser conduct plays a key role in maintaining investor confidence across urban and suburban regions, including Selangor and the Klang Valley.
FIMM adviser misconduct case may influence procedural improvements and investor awareness in the unit trust sector
In the short term, the reprimands may increase scrutiny of consultant availability and client onboarding processes. Distributors may also review internal procedures to strengthen compliance controls.
Over the longer term, these actions may lead to improved ethics training, stronger verification practices, and greater transparency. Regulatory enforcement aims to reduce risks related to forgery and misappropriation. These efforts support market stability and investor confidence in Malaysia’s unit trust sector.