Finance Malaysia believes that after a series of publicity and roadshow by various parties, especially PPA and PRS providers, you should know what is Private Retirement Scheme (PRS) is all about. Since then, we received many inquiries on whom should potential contributor consult with and why?
It brings us to this topic, and hopefully by understanding the different types of PRS distributors, investors could make their decision confidently. There is no right or wrong. It's down to your own preferences and of course, the trust level you have on a PRS consultant. So, who are they?
- This is the most common practice in town, whereby a PRS consultant representing one PRS provider. So, in this case, he/she can only distribute PRS from one company.
- Institutional PRS adviserBasically, they are bankers whom also licensed to distribute PRS schemes made available by respective banks. Bankers may distribute schemes from more than one PRS providers.
- Corporate PRS adviserCurrently, only financial planning firms holding this kind of licensed, whereby they can represent and distribute products from more than one PRS providers. They are individual acting on behalf of clients to source for the most suitable schemes for contributors.
Please take note also that not all unit trust consultants can distribute PRS. ONLY those already get their PRS license can distribute. Under the guideline, he/she may represent a PRS provider, which differ from his/her existing unit trust company. Example, a Public Mutual unit trust consultant can holds a PRS consultant license by Manulife. In this case, he/she can ONLY distribute Manulife PRS to clients.
According to Alex Yeoh (email: email@example.com), a licensed financial planner with a corporate PRS adviser, thinks that each channel has its own advantages. In the end, clients would choose the one, who can give them the best service they want.
Finance Malaysia hopes the above info is useful for you to make informed decision. We believe service of adviser/consultant plays an important role in PRS distribution. However, if you intended to have different PRS funds from different PRS providers, it would be advisable to seek help from a corporate PRS adviser. It's more convenient, simple and effective. Thank you.