Page 33 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

Diagram 6 Diagram 7 Diagram 8
PRS members’ fund Withdrawal by PRS PRS members by type
preference members of employment
Students,
Core: Growth Pre-retirement Others homemakers,
Non-core 42% withdrawal 5% retirees
38% 27% 20%

Self-
employed
10%
introduce mobile application Core: Core: Retirement Employed
and online enrolment Conservative Moderate 70%
The development of the enrolment 68%
module marks the second phase of 7% 13%
the digital solution with the aim of
attracting new members to save for
their retirement via PRS. A PRS mobile
application was also introduced to
provide members with easy accessibility Facilitating expansion of financial retain intellectual knowledge within the firm. In
to their PRS accounts.
planners exchange for mentorship and guidance,
remuneration may then be shared between the
With increased product innovation, financial mentor and mentee.
Diagram 5
planners continue to play a crucial role in providing
PRS members by gender appropriate and professional advice to investors. The liberalised fee structure for CUTA and CPRA
Recognising this, the SC continues to drive the facilitates the expansion of the industry as it
growth of the industry. encourages the professional development of new
entrants in the financial services industry to
In 2018, the SC liberalised the fee structures for transition into licensed financial planners. Investors
Corporate Unit Trust Scheme Advisors (CUTA) and stand to benefit from higher quality and
Corporate Private Retirement Scheme Advisors comprehensive advice offered by financial planners
(CPRA). Cognisant of the different business in CUTA and CPRA firms.
strategies employed, the liberalisation provided more
flexibility for CUTA and CPRA to determine their Another initiative to grow the segment is the launch
51% respective business and remuneration models. of the SmartFinance website at the annual financial
planning conference in July 2018. Funded by the
As a result, all 17 CUTA and CPRA are allowed to Capital Market Development Fund (CMDF), the
10
establish and operate a mentorship model within portal aims to reach a wider investor audience and is
their firms. Under this structure, junior financial a collective industry effort led by Financial Planning
planners are assigned to seniors to gain practical Association of Malaysia (FPAM).
knowledge and build soft-skills, while helping to

10 Data as at end December 2018.

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