Free Practice Questions for FIMM FCE

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Key Facts: FIMM FCE Exam

60 questions

The FCE has 60 multiple-choice questions in a single combined sitting

FIMM - FCE Notes to Candidates

120 minutes

Candidates have two hours to complete the FCE

FIMM - FCE Notes to Candidates

75% pass mark

Candidates must score at least 75% (45 of 60) to pass the FCE

FIMM - FCE Notes to Candidates

RM350

Fee for the new application examination and resit, before taxes

FIMM - Consultant fees

Introduced 2025

The FCE replaced the separate CUTE and CPRE examinations

FIMM - FIMM Combined Exam circular

UTS and PRS

One FCE pass qualifies a consultant to register for both UTS and PRS

FIMM - FIMM Examinations

Online

The FCE is sat online and remotely proctored via Microsoft Teams

FIMM - FCE Notes to Candidates

100

Free original FCE practice questions here

OpenExamPrep

The FIMM Combined Examination (FCE) is the licensing test for prospective unit trust (UTS) and Private Retirement Scheme (PRS) consultants in Malaysia, administered by the Federation of Investment Managers Malaysia (FIMM). It contains 60 multiple-choice questions, runs for 120 minutes and requires a 75% pass mark (45 of 60). Introduced in 2025, it replaced the separate CUTE and CPRE papers so one pass qualifies a candidate for both UTS and PRS registration. The new application examination fee is RM350, and the test is sat online with remote proctoring via Microsoft Teams. This 100-question bank gives original practice across the FCE syllabus: CIS, regulation, marketing, ethics, financial planning and UTS/PRS operations.

Sample FIMM FCE Practice Questions

Try these sample questions to review concepts for the FIMM FCE exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A collective investment scheme (CIS) such as a Malaysian unit trust pools money from many investors. Who legally owns the assets held in the scheme?

A.The unit holders, in proportion to the units they hold

B.The trustee, who holds the assets on behalf of unit holders

C.The unit trust management company (UTMC)

D.The Securities Commission Malaysia

Explanation: In a Malaysian unit trust the scheme's assets are held by an independent trustee on behalf of the unit holders. The trustee is the legal owner, while unit holders are the beneficial owners and the UTMC manages the fund.

2Which statement best describes a unit trust scheme (UTS) as a form of investment?

A.A guaranteed-return savings account regulated by Bank Negara Malaysia

B.A collective investment scheme that pools investors' money to invest in a diversified portfolio of assets

C.A direct loan made by an investor to a single company

D.A government bond issued only to institutional investors

Explanation: A unit trust is a collective investment scheme that pools money from many investors to invest in a diversified portfolio managed by professionals. This gives small investors access to diversification and professional management.

3Which of the following is NOT a unit trust scheme even though it may appear similar?

A.An equity fund

B.A money market fund

C.An investment-linked insurance fund

D.A balanced fund

Explanation: Investment-linked funds offered within life insurance policies are not unit trust schemes. They are insurance products regulated under insurance law, even though they invest in pooled portfolios in a similar way.

4What is the main role of a unit trust management company (UTMC) in a Malaysian unit trust scheme?

A.To hold custody of the scheme's assets

B.To manage the fund and make investment decisions within the deed and guidelines

C.To audit the fund's financial statements

D.To approve the fund's prospectus on behalf of investors

Explanation: The UTMC is responsible for managing the fund, including making investment decisions in line with the fund's objectives, the deed and SC guidelines. The trustee holds the assets and an independent auditor audits the accounts.

5A key similarity between a unit trust scheme (UTS) and a Private Retirement Scheme (PRS) is that both:

A.Are guaranteed by the Malaysian government

B.Are collective investment vehicles where assets are held by an approved trustee

C.Allow unlimited withdrawals at any time without conditions

D.Are sold only through banks

Explanation: Both UTS and PRS are collective investment vehicles in which a third-party approved trustee holds the assets for the benefit of investors or members. This structure protects investors by separating the assets from the management company.

6Which feature most clearly distinguishes a Private Retirement Scheme (PRS) from an ordinary unit trust scheme?

A.PRS is designed to help build long-term retirement savings with restrictions on pre-retirement withdrawals

B.PRS guarantees a fixed annual return

C.PRS can only invest in fixed deposits

D.PRS units cannot be redeemed at all

Explanation: PRS is a voluntary long-term savings scheme to help individuals accumulate retirement savings, and it imposes conditions and tax penalties on withdrawals made before the retirement age. This long-term retirement focus distinguishes it from an ordinary unit trust.

7In a Shariah-compliant unit trust scheme, which body advises on whether the fund's investments comply with Shariah principles?

A.The fund's external auditor

B.The Shariah adviser or Shariah committee appointed for the fund

C.Bank Negara Malaysia's monetary policy committee

D.The trustee's board of directors

Explanation: A Shariah-compliant fund must appoint a registered Shariah adviser or Shariah committee to advise on and certify that the fund's investments and operations comply with Shariah principles. The Securities Commission's Shariah Advisory Council provides industry-level rulings.

8An investor seeking the highest potential long-term capital growth, and who can tolerate larger short-term price swings, would typically be most suited to which fund category?

A.Money market fund

B.Fixed income (bond) fund

C.Equity fund

D.Capital-guaranteed fund

Explanation: Equity funds invest mainly in shares and offer the highest potential for long-term capital growth, but with greater volatility. They suit investors with a long time horizon and higher risk tolerance.

9The principle that investors should not put all their money into a single asset, in order to reduce overall risk, is known as:

A.Leverage

B.Diversification

C.Speculation

D.Arbitrage

Explanation: Diversification spreads investments across different assets, sectors or securities so that poor performance in one is offset by others, reducing overall portfolio risk. It is one of the main benefits a unit trust offers small investors.

10Regular investing of a fixed sum at set intervals, regardless of the unit price, so that more units are bought when prices are low and fewer when prices are high, is known as:

A.Lump-sum investing

B.Ringgit-cost averaging

C.Market timing

D.Short selling

Explanation: Ringgit-cost averaging (dollar-cost averaging) means investing a fixed amount regularly. Because the same amount buys more units when prices fall and fewer when they rise, it lowers the average cost per unit over time and reduces the impact of market timing.

About the FIMM FCE Exam

The FIMM Combined Examination (FCE) is the licensing examination set by the Federation of Investment Managers Malaysia for individuals who wish to be registered to market and distribute unit trust schemes (UTS) and Private Retirement Schemes (PRS) in Malaysia. Introduced in 2025, the FCE merges the former Computerised Unit Trust Examination (CUTE) and Computerised Private Retirement Scheme Examination (CPRE) into one paper, so a single pass qualifies a candidate to register as both a Unit Trust Consultant and a PRS Consultant. The examination has 60 multiple-choice questions to be answered in 120 minutes, with a passing mark of 75%. It is delivered online and remotely proctored through Microsoft Teams, and is available in English and Bahasa Malaysia on Wednesdays and Saturdays. The syllabus follows the FCE Study Guide, covering collective investment schemes, the Malaysian regulatory framework, marketing and distribution, the FIMM Code of Ethics, personal financial planning, and the features and operations of UTS and PRS.

Exam sponsor: Federation of Investment Managers Malaysia (FIMM). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

60 multiple-choice questions covering unit trust schemes (UTS) and Private Retirement Schemes (PRS) in a single combined sitting, spanning collective investment schemes, the regulatory framework, marketing and distribution, code of ethics, personal financial planning, and the features and operations of UTS and PRS.

Time Limit

120 minutes (2 hours).

Passing Score

75%, equivalent to 45 of the 60 questions answered correctly.

Exam / Certification Fees

RM350 for the new application examination and resit. Related fees include exemption from examination (RM150), variation of registration (RM100) and appeal of result (RM100), subject to applicable government taxes.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

Not published

Chapter 1: Understanding Collective Investment Schemes in Malaysia

Nature and classification of CIS (unlisted UTS, PRS and wholesale funds; listed closed-end funds, REITs and ETFs), why investment-linked funds are not UTS, the size and history of the industry, and the participants in the CIS ecosystem.

Not published

Chapter 2: Introduction to UTS and PRS

How UTS and PRS work as investments, their similarities and differences, fund categories (including fund-of-funds, feeder, index, Islamic and government-sponsored funds), methods of investing, benefits and disadvantages, scheme risks, Shariah-compliant schemes and the role of the SC's Shariah Advisory Council.

Not published

Chapter 3: Regulatory Framework

Roles of the SC, other regulators and FIMM; the CMSA, PRS Regulations, SC guidelines and FIMM rules; regulation of Scheme Providers, oversight functions, deeds, prospectuses, disclosure documents and Product Highlights Sheets; portfolio constraints; Scheme Trustees; distribution channels and agency structure; Consultant registration; and REIT and ETF rules.

Not published

Chapter 4: Marketing and Distribution

Servicing investors, disclosure materials and advertising rules, purchase and suitability assessment, cooling-off rights, repurchase and switching, loan financing of UTS, EPF Members Investment Scheme transfers, distributions and taxation, reporting to investors, quality service, investment alternatives and complaints handling.

Not published

Chapter 5: Code of Ethics

Compliance and ethics, and the FIMM Code of Ethics (Fourth Edition, in force since 10 October 2023) with its five core principles: honesty and integrity, professionalism, avoidance of conflict of interest, disclosure of information and observance of confidentiality.

Not published

Chapter 6: Personal Financial Planning

Definition, features and areas of personal financial planning, the six steps of the planning process, financial planner licensing and skills, the Consultant's role in investment planning, client life-cycle stages, and the difference between a financial planner and a UTS/PRS Consultant.

Not published

Chapter 7A: Features and Operations of UTS

UTS structure and deed, fees and charges, the management expense ratio, dealing, valuation and single pricing, forward and historical pricing, unit splits and distributions, measuring performance, Shariah-compliant UTS operations and the risks of borrowing to invest.

Not published

Chapter 7B: Features and Operations of PRS

Malaysia's pension landscape and the World Bank pillars, EPF, KWAP and LTAT, the PRS framework and the Private Pension Administrator, core funds and the default option, tax incentives, sub-accounts A and B, vesting, withdrawals, portability, nomination, fees, pricing and Shariah-compliant PRS.

Preparing for the FIMM FCE Exam

What You Need to Know

Passing score: 75%, equivalent to 45 of the 60 questions answered correctly.
Assessment: 60 multiple-choice questions covering unit trust schemes (UTS) and Private Retirement Schemes (PRS) in a single combined sitting, spanning collective investment schemes, the regulatory framework, marketing and distribution, code of ethics, personal financial planning, and the features and operations of UTS and PRS.
Time limit: 120 minutes (2 hours).
Exam / certification fees: RM350 for the new application examination and resit. Related fees include exemption from examination (RM150), variation of registration (RM100) and appeal of result (RM100), subject to applicable government taxes. Official sources

Using Our Practice Resources

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FIMM FCE: Suggested Study Strategy

1Work through the FIMM Combined Examination Study Guide chapter by chapter; the FCE questions follow its eight sections on CIS, UTS/PRS, regulation, marketing, ethics, financial planning and UTS/PRS operations.

2Master the regulatory roles: who the Securities Commission Malaysia regulates, what FIMM does as a self-regulatory organisation, and how the Capital Markets and Services Act 2007 frames the industry.

3Learn the UTS pricing mechanics precisely, including NAV calculation, forward pricing, the management expense ratio (MER), and creation and cancellation of units, as these are common calculation-style questions.

4Understand the PRS three-pillar framework, the default option by age band, tax incentives (such as the RM3,000 personal tax relief) and withdrawal rules, since PRS content is examined alongside UTS.

5Memorise the FIMM Code of Ethics core principles and what counts as non-compliance; ethics and proper sales conduct are tested throughout the paper.

6Practise timing at roughly two minutes per question so you can comfortably finish 60 questions within the 120-minute limit and review flagged items.

Frequently Asked Questions

What is the FIMM Combined Examination (FCE)?

The FCE is the licensing examination from the Federation of Investment Managers Malaysia for people who want to market unit trust schemes (UTS) and Private Retirement Schemes (PRS). Introduced in 2025, it merges the former CUTE and CPRE papers, so one pass qualifies you for both UTS and PRS registration.

How many questions are on the FCE and how long is it?

The FCE has 60 multiple-choice questions and lasts 120 minutes (2 hours). It is delivered online and remotely proctored through Microsoft Teams, with sessions on Wednesdays and Saturdays.

What is the passing mark for the FCE?

The passing mark is 75%, meaning you must answer at least 45 of the 60 questions correctly. A preliminary result is emailed to you after the session ends.

How much does the FCE cost?

The new application examination and resit fee is RM350. Related fees include exemption from examination (RM150), variation of registration (RM100) and appeal of result (RM100), all subject to applicable government taxes.

Who can sit the FCE?

To register as a Consultant you must be at least 21, be fit and proper, and hold SPM with credits in at least three subjects (or an equivalent or higher qualification). You register for the FCE in the FIMM Core System after selecting a Distributor that accepts you as its Consultant.

Are these official FIMM practice questions?

No. These are original OpenExamPrep questions modelled on the published FCE syllabus and study guide. FIMM provides the official study guide and any official sample questions separately on its own website.