MALAYSIA - Malaysia's 42 trust fund managers will increase transparency and tighten their procedures after the Employees Provident Fund (EPF) called for the introduction of measures to protect contributors from unnecessary losses when investing their EPF savings in trust funds.
EPF chairman Tan Sri Abdul Halim Ali said managers of every trust funds available in the country would be taking four steps to ensure EPF contributors' investments were protected.
The 42 institutions will tighten their processes and procedures while reducing risks. The products they introduce will also have to be favourable to contributors. This should guarantee their benefits during retirement will not be affected by overly high risks.
The EPF also stated the managers' agents must clearly state the risks involved before contributors are asked to invest with them. They will also reduce their operating costs so as not to burden investors unnecessarily.
Abdul Halim said the issue of losses suffered by EPF contributors when investing in these funds was one the EPF took very seriously.
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