anyone can answer my question? any minimum saving?

I have just attended a PRS briefing organized by Pub-Mut for their UTC.

So this is the summary:

i) Low Sales Charge < 3%, no fix rate yet.... waiting for Sec-Com to iron out the detail

ii) Low Mngt Fee < 1.5%, again still waiting for Sec-Com to iron out the details with the PRS service provider.

iii) UTC need to get a seperate lic to sell this scheme. This lic comes under Sec-Com and not FIMM. UTC will need to pay an additional licensing fee to Sec-Com to sell this product.

iv) For the time being, only UTC with 3 years experience and above can sell this scheme, but they must attend a PRS familiarisation course which is a two full day course to be run by the respective PRS provider. The course will also earn the UTC 8 CPD pts.

v) Those who have less than three years experience need to sit for a Sec-Com exam. Details to be out later.

vi) After Jul-2013, all UTC who wishes to promote PRS products need to sit for the exam without exception.

vi) CFP, IFP, RFP, ChFC title holder are exempted from the exam but they must also attend the two full days familiarisation program.

vii) There is a RM 3,000.00 tax relief, contribution is flexible and is not statutuory. Contributor can only get 1/3 of their moonies post 50 y/o and all after 55 y/o. The govt is mulling extending this to 55/60 years old. If the contributor chooses to exit the scheme earlier, there wil be an 8% one time exit fee imposed.

My thoughts:

i) This product will probably fail if they expect UTC to sell it. The commission will be very low and UTC need to pay for a seperate license. So the drive to push for this product will not be there.

ii) Contributors will most like stay away from this as their money will be lock up until they turn 55 y/o.

iii) This scheme is going to fail as the carrot does not match the stick.

Xuzen

i just attend the briefing and apply for the license. the product going to be in the market near future. most probably by september.

Kparam77,

what is your thought or opinion on this new development from the perspective of agent and that of a investor?

Thanks,
Xuzen

Hi all, if you do want to save in PRS, please do contact me via pm. Free advice to public =)

hye please pm me...

Hi, please pm me ur number, I will contact u soon =)

so Hwang IM was the 1st PRS provider approved by SC.

Yes I have enrolled with Hwang DBS last Friday......Hope it looks good in term of returns.

maybe you can enlighten us first on the following questions:
1. how does it work?
2. what is special about Private Retirement Scheme?
3. can you do a comparison between unit trust with Private Retirement Scheme?

thanks for your explanation in advanced, i'm sure it will benefits many of us