CHAPTER 1

1) The Public Sector Pension Providers currently in Malaysia are

i. Employees Provident Fund (EPF)
ii. Kumpulan Wang Persaraan (KWAP)
iii. Armed Forces Provident Fund (LTAT)
iv. Welfare Department
A. i, ii C. i, ii, iii
B. ii, iii D. i, ii, iii, iv

2) Provider of a "defined contribution scheme" in Malaysia

A. PNB C. ASN
B. EPF D. SOCSO

3) Private Retirement Scheme falls under Pillar ___ of the World Bank's 5 Pillars Pension
Framework.
A. I B. II C. III D. IV

4) EPF is legally obligated to provide a yearly dividend of

A. 1.0% B. 2.0%
B. 1.5% D. 2.5%

5) Annuity is
A. an insurance product C. a PRS fund
B. a unit trust fund D. a savings product

6) Public sector pension schemes tend to be

A. defined contribution scheme C. defined welfare scheme
B. defined benefit scheme D. defined annuity scheme

7) Private Retirement Initiative is

A. discretionary and flexible
B. mandatory
C. mandatory and flexible
D. non-discretionary

8) Income replacement ratio is usually between

A. 0.1 - 0.3 C. 0.6 - 0.9
B. 0.3 - 0.5 D. 0.9 - 1.2

9) Which of the statement below is TRUE

A. Average Malaysians have sufficient nest egg for retirement
B. EPF members are well equipped for their retirement
C. Civil servants have sufficient pension during their retirement
D. Average Malaysians don't have enough for retirement

10) Below are benefits of PRS, EXCEPT

A. Is a transparent investment vehicle
B. Provide a pool of funds to fund retirees during retirement
C. Reduce the burden on Government finances
D. Provides guaranteed returns

CHAPTER 2

1) PRS industry Regulator with the power to regulate, supervise and enforce
A. Bank Negara
B. Ministry of Finance
C. Securities Commission
D. Bursa Malaysia

2) PRS industry is regulated under

A. Banking and Financial Institutions Act 1989
B. Capital Markets and Services Act 2007
C. Insurance Act 1986
D. Government Investment Act 1983

3) PRS Consultants need to be registered with

A. Securities Commission
B. Bursa Malaysia
C. Federation of Investment Managers Malaysia
D. Bank Negara

4) ____is responsible for facilitating and maintaining all PRS related transaction by members.
A. PRS Providers
B. PRS Distributors
C. Private Pension Administrator (PPA)
D. Securities Commission

5) The board of directors of Private Pension Administrator must

A. comprise of at least two-thirds of public interest directors
B. comprise of at least one-third of public interest directors
C. comprise of at least half of public interest directors
D. comprise of at least one-quarter of public interest directors

6) Following are the functions of Private Pension Administrator, EXCEPT

A. Issue consolidated account statements to all members
B. Maintain databases of all private pension account numbers issued
C. Operate a call centre and deal with complaints
D. Register PRS consultants

7) Private Pension Administrator is duty bound not to divulge sensitive, and personal
information relating to PRS members. This is expressly stated under
A. Section 139A & 139B ofCMSA B. Section 139M & 139N of CMSA
C. Section 139N & 1390 ofCMSA D. Section 139X & 139Y of CMSA

8) Following are the duties and responsibilities of Private Pension Administrator

i. Must act in the public interest at all times
ii. Monitor fees charged and performance offered by the different PRS Providers
iii. Provide information to the PRS provider, Scheme Trustee or member
iv. Receiving and transmitting instruction in a manner specified by the SC
A. i & ii C. ii, iii
B. i, ii, iii D. i, ii, iii, iv

9) Directors and the CEO of Private Pension Administrators must be approved by

A. Ministry of Finance C. Securities Commission
B. Bank Negara D. Companies Commission of Malaysia

10) The Private Pension Administrator will charge fees for

i. Opening Account
ii. Facilitating transactions
iii. Maintaining the PPA account iv Managing Funds
A. i & ii C. i, ii, iii
B. ii & iii D. i, ii, iii, iv

CHAPTER 3

1) Following are the eligibility criteria to be a PRS Provider

i. Relevant experience in retail or pension funds or life insurance business
ii.Good corporate governance
iii. Financial resources (RM5 million paid up capital)
iv. Board of Directors fit and proper persons with relevant skill, experience and
competence
A. i & ii C. ii & iii
B. i & iii D. i, ii, iii, & iv

2) Following are the duties of a Compliance Office in a PRS Provider

i. Responsible for compliance training in the PRS Provider
ii. Advise on compliance matters and regulatory developments
iii. Monitor and resolve conflict of interest situations
iv. Responsible for the compliance manual and the code of conduct for employees of
the PRS Provider
A. i & ii
B. i & iii
C. ii & iii
D. i, ii, iii, & iv

3) PRS Provider must be able to provide the member the following

i. Deed ( and supplementary deed)
ii. Latest interim and annual report of fund
iii. Disclosure documents
iv. Prospectus
A. i & ii
B. i & iii
C. i, ii & iii
D. i, ii, iii, & iv
4) Members of Investment Committee in PRS Provider need to
i. have requisite fund management expertise
ii. Comprise at least of 3 individuals
iii. Have at least one-third independent member
iv. Have at least 2 independent members
A. i & ii C. I, ii & iii
B. i & iii D. i, ii, iii, & iv

5) It is the role and responsibility of the Investment Committee to

i. select strategies appropriate for achieving the fund's objective
ii. ensure the strategies are properly and efficiently implemented
iii. actively monitor, measure and evaluate the performance of the fund
iv. Select the stocks for the funds
A. i & ii C. I, ii & iii
B. i & iii D. i, ii, iii, & iv

6) To avoid conflict of interest, members of Audit Committee in PRS Provider cannot be

i. the Shariah Adviser of any fund of the PRS Provider
ii. On the panel of adviser of any fund on the PRS provider
iii. Chartered Accountant
iv. Individual with fund management experience
A. i & ii
B. i & iii
C. I, ii & iii
D. i, ii, iii, & iv

7) The "Fit and Proper" criteria for Shariah Adviser in a PRS Provider includes
i. A good reputation and character
ii. Possessing high standards of integrity
iii. Fair dealings with everyone
iv. Expertise and experience to perform duties
A. i & ii
B. i & iii
C. I, ii & iii
D. i, ii, iii, & iv

8) The principal role of a Shariah Adviser is to

A. Ensure all aspects ofPRS and fund management business are compliant with
Shariah principles
B. Manage the Shariah compliant funds
C. Appoint the Scheme Trustee for the Shariah funds
D. Appoint the Investment Committee for the Shariah funds

9) PRS Provider need to be able to fulfill the requirement of having

i) relevant track record
ii) the administrative capabilities to manage PRS system
iii) strong organizational structure
iv) doing transactions at arm’s length
A. i & ii C. i, ii & iii
B. i & iii D. i, ii, iii & iv
10) Strong organizational structure means
i) clear lines of responsibility, authority and reporting
ii) Strong risk management and control systems
iii) Adequate and qualified human resources
iv) Sufficient capital, at least RM5 million
A. i & ii C. i, ii & iii
B. i & iii D. i, ii, iii, & iv

Chapter 4

1) PRS consists of a range of funds which are called

A. Compliant and Non-compliant funds
B. Core and non-core funds
C. Complex and non-complex funds
D. Conservative and non-conservative funds

2) The PRS is defined as

i. a capital market product
ii. voluntary long term investment scheme
iii. long term investment for children's education
iv. help individuals accumulate savings for retirement
A. i & ii C. ii, iii & iv
B. I, ii, & iv D. i, ii, iii, & iv

3) Bond is
A. a debt instrument where an investor loans money to an entity that borrows the funds
for a defined period of time at a fixed interest rate.
B. an instrument that offers dividends and capital appreciation
C. an investment vehicle with less than 1 year maturity
D. a high yield investment product

4) In the PRS' context equities would refer to

A. fixed income instruments that the PRS fund invests in
B. bonds that the PRS fund invests in
C. stocks and shares of companies that the PRS fund invests in
D. money market instruments that the PRS fund invests in

5) Example of Money market instruments are

i. Certificate of Deposits
ii. Commercial paper
iii. Long term Notes
iv. Mid-term Notes
A. i & ii C. ii, iii & iv
B. i, ii, & iv D. i, ii, iii, & iv

6) The advantages of a Collective Investment Scheme includes

i. ability to hire professional investment managers
ii. costs sharing
iii. diversification
iv. guaranteed income
A. i & ii C. i, ii & iii
B. ii. & iv D. i, ii, iii, & iv

7) The PRS is open to

i. Individuals aged 21 and above
ii. Malaysians only
iii. Individuals aged 18 and above
iv. Malaysians and foreigners
A. i & ii C. i, ii & iii
B. i & iii D. iii & iv

8) Contribution to a PRS scheme ;

i. Mandatory and fixed amount must be invested
ii. Voluntary and no fixed amount nor intervals for making the contributions
iii. Can start up again after any lapse of time
iv. Individual PRS Providers may set a minimum contributions amount
A. i & ii C. i, ii & iii
B. ii, iii & iv D. i, ii, iii & iv

9) The Default Option in PRS :

i. Based on the life cycle approach to investing
ii. Available to members that choose their PRS Provider but do not make a fund
option
iii. The amount would be automatically be allocated using the default option which
is based on the age of the member
iv. Applicable when an employer makes a contribution to a member's account but
the employee does not specify the fund to be invested in
A. i & ii C. i ,ii & iii
B. ii, iii & iv D. i, ii, iii & iv

10) The tax relief for PRS and annuity for Personal Tax of individual is
A. RM1,000 C. RM6,000
B. RM3,000 D. RM9,000

11) In a PRS account, how are the contributions split?

A. Sub-account A - 70% Sub-account B - 30%
B. Sub-account A - 60% Sub-account B - 40%
C. Sub-account A- 60% Sub-account B- 30% Sub-account C- 10%
D. Sub-account A- 50% Sub-account B -30% Sub- account C- 20%
E.
12) Retirement age for the PRS is currently at
A. 50 C.58
B. 55 D.60

13) Mr.Yap invested RM1,000 with PRS Provider A on 1st November 2012. NAV of the Fund
was RM1.00. Mr.Yap invested an additional RM1,000 on 1st February 2013. NAV of
the Fund was RM0.50 then. What would be the total units Mr.Yap have in his Sub-
Account B.
A. 300 units C. 900 units
B. 600 units D. 1200 units

14) How much is the tax penalty if the PRS member withdraws his money from Sub-account
B before the age of 55?
A.10% C. 12%
B. 8% D. 7%

15) Accrued Benefits

i. Defined as the amount of a member's beneficial interest in a PRS
ii. The amount accumulated in Sub-account A only
iii. The amount accumulated in Sub-account B only
iv. The amounts accumulated in Sub-account A & B
A. i & ii C. i & iv
B. ii, iii & iv D. i, ii, iii, & iv

16) According to Section 139ZA of CMSA 2007, Accrued Benefits of a PRS member is
A. protected from judgment debt and cannot be the subject of a charge, lien, pledge or
assignment
B. claimable by creditors
C. protected from judgment debt only
D. subject to charge, lien, pledge and assignment

17) Employers may make the contribution to the PRS subject to a vesting schedule to
promote employee
A. productivity C. happiness
B. loyalty D. well-being

18) PRS members or beneficiaries can withdraw from PRS in the following ways;
i. Pre-retirement withdrawal
ii. Retirement withdrawal
iii. Permanent departure from Malaysia through emigration
iv. Death of PRS member
A. i & ii C. i & iv
B. ii, iii & iv D. i, ii, iii, & iv

19) PRS members are allowed to do pre-retirement withdrawal from

A. Both Sub-Accounts C. Sub-Account C
B. Sub-Account A D. Sub-Account B

20) PRS members are able to

i. to do switching between the funds within the scheme
ii. Transfer between different PRS Provider
iii. switch between core funds as well as non-core funds
iv. do withdrawal immediately
A. i & ii C. i & iv
B. i, ii & iii D. i, ii, iii, & iv
Chapter 4b

1) Scheme Trustee
i. be a trust company under the Trust Company Act 1949 or incorporated pursuant
to the Public Trust Corporation Act 1995
ii. be independent from the PRS Provider
iii. take custody and control of all securities, derivatives, property and assets of a
PRS and hold it in trust for the members
iv. advise the investment managers on how to manage the funds
A. i & ii C. i & iv
B. i, ii & iii D. i, ii, iii, & iv

2) Following are the entities that performs the oversight function in the PRS, EXCEPT?
A. Scheme Trustee C. Fund Manager
B. Investment Committee D. Audit Committee

3) Scheme Trust must ensure, the PRS fund is operated and managed in accordance
with;
i. The Deed and Disclosure Document
ii. PRS Guidelines
iii. Securities laws including PRS Regulations
iv. Acceptable and efficacious business practices within the PRS industry
A. i & ii C. i & iv
B. i, ii & iii D. i, ii, iii, & iv

4) The Auditor of the PRS fund need to be

i. independent of the PRS Provider
ii. Independent of the Scheme Trustee
iii. Registered with Audit Oversight Board
iv. Registered with FIMM
A. i & ii C. i & iv
B. i, ii & iii D. i, ii, iii, & iv

5) The costs on members for participating in the PRS

i. need to be clearly spelt out in the disclosure document
ii. Charges need to be clearly permitted by the deed and expressed as a fixed
amount or a fixed percentage of the amount invested
iii. Securities commission has the power to review the fees and charges
iv. Fees and charges may vary among the PRS Providers
A. i & ii C. i & iv
B. i, ii & iii D. i, ii, iii, & iv

6) All dealing in the PRS funds would be based on

A. historic pricing C. forward pricing
B. present pricing D. current pricing

7) When a PRS member aged 56, invested in a single PRS Fund receives distribution from
the fund and he opts for reinvesting the distribution. What would be the effect to the NAV
per unit and his total wealth?
A. NAV per unit of the fund would reduce and total wealth of the member reduced
B. NAV per unit of the fund would reduce and total wealth of the member would be the
same
C. NAV per unit of the fund would increase and total wealth of the member would
increase
D. NAV per unit of the fund would increase and total wealth of the member would be the
same

8) Investors are advised to read and understand before making the decision to participate
in the PRS Scheme
A. Prospectus C. Disclosure Document
B. Annual Report D. Fund factsheet

9) Product Highlight Sheet;

i. Summary of the disclosure document
ii. Cannot contain information that is not included in the disclosure document
iii. Read together with the disclosure document for all the available information
iv. Must highlight information to potential members in a clear and concise manner
using easily understood language and where necessary, it can have diagrams,
charts and tables for illustrative purposes.
A. i & ii C. i & iv
B. i, ii & iii D. i, ii, iii, & iv

10) When a potential member asks for the subscription form for a PRS scheme, the
following document need to be given together with the form ;
A. Prospectus C. Disclosure Document
B. Fund Factsheet D. Annual Report

11) This document must be presented in either soft or hard copy to the potential member at
the initial engagement or at the point the individual shows interest in the PRS fund;
A. Prospectus C. Disclosure Document
B. Product Highlight Sheet D. Annual Report

12) Product Highlight Sheet must include i. Scheme information

i. Scheme information
ii. Fund information
iii. Fees and charges
iv. Risk factors and warnings
A. i & ii C. i & iv
B. i, ii & iii D. i, ii, iii & iv

13) Portfolio Turnover Ratio (PTR) indicates

A. how frequently the assets within a fund are bought and sold by the managers over a
measurement period.
B. the costs of managing the funds
C. the risk factors of the funds
D. the variable costs and risk factors of the fund
14) If the a potential member wanted to choose a fund to invest, at initial contact, she should
be given _____and she must also read the______in full before making an investment
decision
A. fund factsheet & prospectus
B. product highlight sheet & disclosure document
C. Disclosure Document & Annual Report
D. product highlight sheet & prospectus

15) The Disclosure Document would contain

i. The PRS details
ii. Details of the funds under the PRS including the investment objectives and costs
incurred
iii. Salient terms of the Deed
iv. Transaction information including information on valuation points and procedures
on purchasing and redeeming units
A. I & ii C. i, iii & iv
B. i, ii & iii D. i, ii, iii & iv

Chapter 5

1) Below are three core funds offered by PRS Providers.

i. Conservative Fund ii. Moderate Fund
iii. Conservative - Moderate Fund iv. Growth Fund
A. i & ii C. i, ii, iii
B. ii & iii D. i, ii, iv

2) The purpose of the PRS is to

A. saves money for buying assets later
B. saving money for their holiday trips
C. facilitate asset accumulation by members for use in retirement
D. facilitate asset accumulation by members to create an annuity

3) If a member does not specify the fund he wants to invest in, his investment would be
based on
A. Automatic Option C. Select Option
B. Default Option D. Mutual Option

4) The assets of the funds are held by

A. PRS Provider C. Scheme Trustee
B. Fund Manager D. PRS Member

5) The Default Option is

A. risk-based C. age-based
B. cash-based D. fund-based

6) Growth Fund has an exposure of

A. maximum of 60% in equities
B. maximum of 70% in equities
C. maximum of 80% in equities
D. maximum of 90% in equities

7) For PRS Members aged above 50 years the Default Option fund would be
A. Growth Fund C. Moderate Fund
B. Aggressive Fund D. Conservative Fund

8) Name the fund described as following; with a maximum of 60% invested in the Malaysia
and overseas equity markets, we can expect the volatility of returns to be quite high and
varied.
A. Growth Fund C. Moderate Fund
B. Aggressive Fund D. Conservative Fund

9) Arrange the PRS funds according to risk level in ascending order.

A. Conservative Fund, Moderate Fund, Index Fund, Growth Fund
B. Conservative Fund, Index Fund (Equity Index), Moderate Fund, Growth Fund
C. Conservative Fund, Moderate Fund, Growth Fund, Index Fund (Equity)
D. Conservative Fund, Growth Fund, Index Fund, Moderate Fund

10) PRS Conservative Fund would be investing in

i. Malaysian Equities
ii. Overseas Equities
iii. Fixed income instruments
iv. Money market instruments
A. i & ii C. i, iii & iv
B. i, ii & iii D. i, ii, iii & iv

Chapter 6

1) In order to determine whether the fund recommended to a member is suitable or

otherwise, the PRS Distributor and Consultant must conduct a
A. Needs Assessment C. Investment Assessment
B. Suitability Assessment D. Risk Assessment

2) Recommendations obtained from a Suitability Assessment should be kept in

A. memory C. sketch
B. writing D. mind

3) Suitability Assessment Process involves

A. 3 Stages C. 5 Stages
B. 4 Stages D. 6 Stages

4) Information gathered from the member can be categorized into three categories, which
are
i. Know Your Member
ii. Member's risk profiles and needs
iii. Member's investment knowledge
iv. Member's current status
A. i, iii & iv C. ii, iii & iv
B. i, ii & iii D. i, ii & iv
5) In the Member's risk profile and needs category, below are the following personal info
that should be gathered
i. Member's financial situation
ii. Member's current portfolio
iii. Risk Profile and Needs
iv. Investment Objectives
A. i, iii & iv C. ii, iii & iv
B. i, ii & iii D. i, ii, iii & iv

6) In the event that there is no suitable fund available in the PRS for the member. PRS
Consultant should
A. recommend a second best choice for the member
B. just keep quiet about it
C. inform the member that there is no suitable fund
D. just recommend any fund they prefer

7) The PRS Consultant should obtain a written acknowledgement from the member that
i. All information disclosed by the member is true, complete and accurate
ii. The member understood the features and risks of the fund having obtained the
explanation from the PRS Consultant
iii. The member has received a copy of the disclosure document
iv. The member is very satisfied by the recommendation given by the consultant
A. I, iii & iv C. ii, iii & iv
B. i, ii & iii D. i, ii & iv

8) To mitigate risk, PRS funds are required to have Exposure limits. For investment in a
single issuer, how much could a PRS Equity fund invest of its Fund's NAV.
A.5% C. 15%
B. 10% D. 20%

9) In a non-specialized fund, the investment concentration limit for Debenture issued by a

single issuer is
A. 5% B. 15%
B. 10% D. 20%

10) The investment spread limit in a single financial institution pertaining to deposits in a
Cash Management Fund is
A.5% C. 15%
B. 10% D. 20%

11) A Fund of Funds is

A. a fund that invests all its assets into a single collective investment scheme
B. a fund that invests all its assets according to a market benchmark
C. a fund that invests all its assets in other collective investment scheme
D. a fund that invests all its assets in fixed income instruments only

12) A return measurement that is useful in comparing fund performances that differs in
holding period is
A. Average Total Return
B. Compounded Annual Return
C. Simple Average
D. Annual Return

Chapter 7

1) A PRS Consultant may represent

A. One principal C. three principals
B. Two principals D. four principals

2) Following are the eligibility requirements to be a PRS consultant

i) Be at least eighteen (18) years of age
ii) Has passed SPM and obtained credit in BM, English or Mandarin and
Mathematics
iii) Has passed the PRS examination
iv) Has a minimum operating capital of RM100,000
A. i & ii C. i & iii
B. ii & iii D. ii & iv

3) Code of Ethics for PRS Consultants includes

i. Professionalism
ii. Confidentiality
iii. Good faith
iv. Competence
A. i & ii C. i & iii
B. i. ii & iii D. i, ii, iii & iv

4) The PRS Distributor and Consultant must only use advertisement and promotional
material that have been approved by
A. FIMM C. PRS Provider
B. Scheme Trustee D. PRS Advisor

5) In order to maintain the high standards of professional conduct, any PRS Distributor
and Consultant who have breached the provisions of the Code of Ethics and Standards
of Professional Conduct shall be subject to actions that may be taken which includes;
i. a private reprimand
ii. a public reprimand
iii. a suspension
iv. revocation of registration to the FIMM

A. i & ii C. i & iii

B. i, ii & iii D. i, ii, iii & iv

6) In the process of Servicing the PRS member, the following are necessary steps
i. Know your product
ii. Assess the needs and match the funds
iii. Managing expectations
iv. Influence the PRS member to invest as much as possible
A. i & ii C. i & iii
B. i, ii & iii D. i ,ii, iii & iv

7) In Rendering Investment Advice, the following need to be taken into consideration

i. Age and personal circumstance of PRS member
ii. Risk tolerance of PRS member
iii. Highlighting the key risks of the PRS Funds
iv. PRS consultant's preference
A. i & ii C. i & iii
B. i, ii & iii D. i ,ii, iii & iv

8) Fair dealing requires

i. Impartiality
ii. Intellectual honesty
iii. Disclosure of conflicts of interest
iv. Aggressive sales tactics
A. i & ii C. i & iii
B. i, ii & iii D. i, ii, iii & iv

9) Professionalism of a PRS Consultant would be demonstrated by doing the following;

i. knowledge in all aspects of the PRS and the funds they are marketing
ii. Compliant with the best business practices
iii. Behave with dignity and courtesy to all persons whom they come in contact with
in the course of rendering their service
iv. Pressuring the member to make a fast decision.
A. i & ii C. i & iii
B. i, ii & iii D. i ii, iii & iv

10) PRS Consultant acting with due care, skill and diligence also includes
i. ensure that the funds and PRS is suitable to the needs of the member
ii. Ensure the investment plan is within the resources of the member
iii. Take all reasonable steps to provide the member with comprehensive and
relevant information for him to make a balanced and informed decision.
iv. omit material fact to influence the member to invest according to the preference
of the consultant
A. i & ii C. i & iii
B. i, ii & iii D. i, ii, iii & iv