Dear Disgruntled Daughter

Have you heard about cooling-off period? It is a right accorded to each unit trust investor. Cooling-off period is time given to investors to reconsider whether to continue investing in the unit trust fund or otherwise. Essentially, the cooling-off period will start soon after an investor invested in the unit trust fund. The cooling-off period is for six business days from the “date of application” i.e. the date the unit trust product was purchased. Generally, this will be stipulated in the prospectus. Within this period, a unit trust investor can choose to withdraw or to continue investing in the unit trust. If an investor opts out of the unit trust fund within the cooling-off period, the investor is entitled to receive his money in full including the fees paid.

However, please be mindful that the right to the cooling-off period is not perpetual, as it is only given to investors who invest in a product of a unit trust management company for the first time. For instance, if your mother purchase a unit trust product from Company A, and this is her first time investing in a unit trust product offered by the said company, she may then exercise the cooling-off right. If she wants to invest again in other products of the same company i.e. Company A, the cooling-off period no longer applies.

So, the next time your mother or you invest in unit trust products, remember that you can exercise your right to a cooling-off period. Just make sure you exercise it within the stipulated period.

With regard to your unhappiness or grievances against the unit trust agent or company, you can lodge a complaint with:

Federation of Malaysian Unit Trust Managers (FMUTM)
19-07-3, 7th Floor, Plaza Kelanamas
19, Lorong Dungun
Damansara Heights
50490 Kuala Lumpur
Tel: (603) 2093 2600
Fax: (603) 2093 2700
E-mail: info@fmutm.com.my
Website: www.fmutm.com.my

Or

Complaints Department
Securities Commission
3, Persiaran Bukit Kiara
50490 Kuala Lumpur
Tel: (603) 6204 8999
Fax: (603) 6204 8991
E-mail: aduan@seccom.com.my

Thus, should your mother or you plan to invest again, try your level best to get as much information as possible so that you will be able to make a well-informed decision and not be easily swayed by agents or sales persons using high pressure sales tactics. As for your mother, advise her to call you first before parting with her hard-earned money.

Regards

-Ringgitman