Hi Guys, I'm new to Fundsupermart ( just open an account) and was reading the FAQ on registration of units pertaining to cash investment. It is mentioned that units are registered to iFast Nominees Sdn Bhd and NOT to the investor's name. My question is how are the true Unit owners protected in event iFast Nominees Sdn Bhd goes kaput? Does the Fund in which we invested in, have us as owners in their books and iNSB as trustee or are we at the mercy of the company? They are so many investment frauds nowadays ie Wine, Gold, Land etc etc, one cannot be overly complacent especially when we are talking about investing our hard earned money..
The Gurus care to comment? Thanks.

Knowing a company is not suppose to do anything other than holding monies in trust will not give an investor any comfort in event of a fraud. Question is what happens if somebody in the Nominee Sdn Bhd runs off with our money and goes bankrupt. If the Funds is not registered in our name, do we have recourse to claim against the Fund ? Are our rights limited in any way as "Unit" holders under the Nominee system as compared to a Unit holder registered directly with the Funds? Registration with SC merely means that it is not any random guy who happens to have some investment savvy who set up shop distributing unit trust funds but it has satisfied and complied with conditions set out by SC. SC is not going to provide any guarantee to the investors.

I agree. I have a combination as well. Some direct and thru trustee companies. The thing is, some of these are fully backed by major banks like hsbc, CIMB , HL etc. The prospectus from iFast says that they have 2 corporate shareholders in Osk and Deutche bank but I notice they did not mention how much is their share holdings ...is it major or token? I will need to find out more before committing. Thanks anyway. End of the day it's caveat emptor.

I've actually taken note of that one. Bear in mind they mentioned they have 2 corporate shareholder but not mentioned how much is their shares. 1 share is also a shareholder just like I'm also a shareholder of Genting because I own 500 shares. I may sound like I'm being flippant but just be cautious of statements which are made by these chaps especially when they are unwilling to reveal further when questioned. iFast may well be as solid as a Rock but my point here is be wary of the risks especially when you are investing your hard earned money. Good luck!