What is the FIMM FCE?
The FIMM Combined Examination (FCE) is the exam new unit trust and Private Retirement Scheme (PRS) consultants in Malaysia sit before FIMM will register them. One sitting covers both unit trusts and PRS, replacing the separate CUTE and CPRE exams. It is 60 multiple-choice questions in 2 hours, and you need 75% to pass.
The exam format
| Questions | 60 multiple choice |
|---|---|
| Time | 120 minutes (2 hours) |
| Pass mark | 75% (45 correct answers) |
| Language | English or Bahasa Malaysia; your choice is final once submitted |
| Delivery | Online, invigilated over Microsoft Teams; sessions at 9 am, 12 pm and 3 pm |
| Equipment | A computer with a browser plus a smartphone with Microsoft Teams, in a quiet room on your own |
| Official reference | FIMM Combined Examination Study Guide (English or BM) |
| Fee | Set by FIMM; check the FIMM website or Registration Manual |
You register yourself through FIMM's FCS system, and seats go on a first-come, first-served basis. A preliminary result is emailed when you finish, and the approved result appears in FCS within five calendar days. Passing is not the same as registration: you may not market unit trusts or PRS until FIMM approves your registration as a consultant.
What the exam covers
- Unit trust fundamentals: the manager, trustee and unit holders, the deed, fund types (money market, bond, equity, balanced, feeder, index).
- Investment concepts: risk and return, systematic and specific risk, diversification, compounding, ringgit-cost averaging.
- Pricing and transactions: NAV per unit, sales and repurchase charges, forward pricing, the 7-business-day repurchase rule, cooling-off refunds.
- Regulation: the Capital Markets and Services Act 2007, the SC Guidelines on Unit Trust Funds, investment limits, FIMM's role.
- Private Retirement Schemes: sub-accounts A (70%) and B (30%), the 8% tax penalty, retirement age 55, the default option, housing and healthcare withdrawals, tax relief.
- Shariah-compliant funds: the SC's 5% business activity and 33% financial ratio screens, purification, the Shariah adviser.
- Ethics, suitability and complaints: fair selling, conflicts of interest, AMLA duties, SIDREC.
Free official resources, and what we add
FIMM publishes the exam structure and rules in its FCE circulars and Notes to Candidates, and the official reference text is the FIMM Combined Examination Study Guide. The Securities Commission publishes the Guidelines on Unit Trust Funds and the Guidelines on Private Retirement Schemes free on its website. There is no free official question bank. Our questions are original, are written and checked against those sources, and each one explains why the answer is right and the alternatives are wrong, including step-by-step working for every calculation.
How to prepare
- Get the FIMM Combined Examination Study Guide and read it once end to end.
- Learn the numbers the exam likes: 70/30 sub-accounts, 8% penalty, age 55, six-business-day cooling-off, 7-business-day payment, 5% and 33% Shariah screens.
- Practise NAV, sales charge, repurchase and cooling-off calculations until they are automatic.
- Practise one topic at a time, then sit full 60-question timed mocks in 2 hours.
- Aim for well above 75% in practice, since the real pass mark leaves little room for error.
- Check FIMM's Notes to Candidates for the device and room rules before exam day.
Practice questions with answers
Tap a question to see the correct answer and explanation.
Which document constitutes a unit trust fund and sets out the rights and obligations of the management company, the trustee and the unit holders?
- The product highlights sheet
- The deed
- The prospectus
- The annual report
Answer: B, The deed. The deed is the constitutive document of the fund. The prospectus and product highlights sheet are disclosure documents for investors, and the annual report reports on performance. Source: SC Guidelines on Unit Trust Funds (SC-GL/GUTF-2008, R7-2024), Chapter 5 (deed of a unit trust fund).
Which type of risk cannot be removed by diversifying across many shares?
- Systematic (market) risk
- Unsystematic (specific) risk
- Business risk of a single company
- Management risk of one issuer
Answer: A, Systematic (market) risk. Systematic risk affects the whole market (for example interest rates, recessions) and remains however many shares you hold. Diversification reduces unsystematic, company-specific risk. Source: FIMM Combined Examination Study Guide, risk and return.
Ahmad invests RM10,000. The NAV per unit is RM0.50 and the sales charge is 5% of NAV per unit, deducted from the amount invested. How many units does he receive (to two decimal places)?
- 19,047.62 units
- 20,000.00 units
- 21,000.00 units
- 19,000.00 units
Answer: A, 19,047.62 units. Price paid per unit = NAV + 5% of NAV = 0.50 x 1.05 = RM0.525. Units = 10,000 / 0.525 = 19,047.62. 19,000 units would apply 5% to the amount invested instead of the NAV per unit. Source: SC Guidelines on Unit Trust Funds (SC-GL/GUTF-2008, R7-2024), Chapter 7 (fees and charges) and Chapter 8 (pricing).