PLEASE READ  BEFORE ACCEPTING THE TERMS AND CONDITIONS IN THIS APPLICATION.

Terms and conditions relating to transaction.

In accordance with the requirements of the Capital Markets and Services Act 2007, such forms and/ or an online platform/system prescribed by Principal (“collectively referred to as Application”) should not be circulated or accepted unless accompanied by or read together with the prospectus and supplementary prospectus(es) (if any) for the Fund(s).

These Terms and Conditions are to be read in conjunction with the terms and conditions relating to account opening, transaction, redemption and other relevant terms and conditions, where applicable. Where there are any dispute, issues and/ or conflicts between these terms and conditions and the terms and conditions contained in the Offering Document, the terms and conditions contained in the Offering Document shall prevail to the extent of such dispute, issue and/ or conflict.

Except where the context otherwise requires, or unless this Application otherwise provides, all words and expressions defined in the terms and conditions relating to account opening, when used or referred to in this Application shall have the same meaning as that provided in the terms and conditions relating to account opening.

1.    Investment

1.1.    Cheques for investment must be made payable to PRINCIPAL ASSET MANAGEMENT BERHAD FOR <NAME OF INVESTOR AS PER IDENTIFICATION DOCUMENT>. At the back of the cheque, please write your full name, new NRIC number, name of fund, account number and telephone number.

1.2.    The Applicant undertakes not to make payment via physical cash for unit trust investment.

1.3.    Without prejudice to the generality of the foregoing, all Unit Trust Scheme Consultants (“Consultant”) of Principal Asset Management Berhad  (“Principal”) are prohibited from receiving from any party monies for unit trust investment (whether by way of cash or cheque or any other instrument made out in favour of the Consultant) for their onwards transmission to  Principal and in the event that the Applicant does hand over such monies to the Consultant, such Consultant shall for the purposes of such transmission of monies to Principal , be the Applicant’s unit trust consultant and not Principal and Principal shall not be liable for any loss whatsoever occasioned to the Applicant or any other person as a result of the Applicant handing over such monies to the said Consultant. Principal is under no obligation to accept payments for unit trust investment via Consultant of Principal or any third party and may at Principal’s sole and absolute discretion reject any such payments.

2.    Regular Savings Plan (If Applicable)

2.1.    The Applicant may use the following banks' autodebit/standing instruction/direct debit for additional investment.

3.    Switching

3.1.    Principal may accept or reject in whole or in part an application to switch without furnishing any reasons for such refusal. The Applicant may switch the Applicant’s investments in any one fund to another fund (unless otherwise stated by the Disclosure Documents for the relevant Fund). If the Applicant switches into a Fund in which the Applicant presently hold units in, any distribution instruction earlier given for that Fund will apply to the additional units and remain unchanged. If the switching is made to an initial (new) fund/investment, the net amount switched must meet the minimum requirement of the target fund’s initial investment amount. For any partial switching, the minimum investment amount in the original fund must be met at all times. 

Note: Switching between unit trust funds of the different fund management companies is not allowed. 

3.2.    Principal allows switching from Shariah-based Funds into conventional Funds. However, Muslim unit holders are discouraged to switch from Shariah-based Funds to Conventional Funds.  

3.3.    For full switching request, the Regular Savings Plan, if any, for the original / switch out fund will be automatically discontinued. 

4.    Employees Provident Fund (“EPF”) Investment Scheme - Declaration by Applicant

4.1.    The Applicant confirms he/she is below 55 years of age and at the point of this application, the Applicant has not applied/will not be doing so in the next 14 days, for any type of withdrawal from the Applicant’s EPF Account 1. (e.g. investments in annuity scheme, Government shares, unit trust with Principal or other management companies or any other form of investments). 

4.2.    The Applicant also confirm that the disbursement date of the Applicant’s last withdrawal from EPF Account 1, if any, is at least 3 months from this application. 

4.3.    Subject to this declaration and complete submission of documents, the Applicant acknowledges that Principal reserves the right to:

4.3.1.    Create units in the Applicant’s name based on forward pricing on the date  Principal receives the Applicant’s documents in full; and 

4.3.2.    Cancel the above units created in the Applicant’s name and the Applicant consents to this cancellation should the EPF monies not be received by Principal within a period of 60 days from the date of this application.

4.4.    The Applicant understands that if the Applicant resubmits a fresh application in the event of EPF rejection, Principal has the right to process the Applicant’s application based on forward pricing on the date Principal receives the Applicant’s fresh application.

5.    Rights of Principal

5.1.    Principal reserves the right to accept or reject any application in whole or in part thereof without assigning any reason in respect thereof, without compensation to the Applicant and any duly completed Application received by Principal is deemed irrevocable by the Applicant. 

5.2.    Notwithstanding anything contained herein, Principal shall be at liberty to disregard or refuse to carry out any of the Applicant's instruction if the carrying out of such instructions, would be in contravention of any existing laws or regulatory requirements, whether or not having the force of law and/or would or may expose Principal to any liability (whether valid or otherwise).

6.    Distribution Instruction

6.1.    For EPF Plan, all distribution will be automatically reinvested. 

6.2.    For Cash Plan, all distribution for income type of funds will be automatically paid out while for other types of funds will be automatically reinvested, unless written instructions to the contrary are communicated by the Applicant to Principal.

6.3.    Distribution payout to the unitholder, if any, which remain unclaimed for 6 months will be automatically be reinvested into the Fund based on the prevailing NAV per unit of the Fund.

7.    Fees, Charges and Expenses

7.1.    Principal reserves the right to impose additional administration related expenses that may be incurred in carrying out any instructions given by the Applicant. 

7.2.    The Applicant shall be responsible for the payment of any charges, fees, costs, expenses and other liabilities properly payable or incurred by Principal and in holding or executing transaction in respect of any of the units.

7.3.    Principal shall not be liable to pay any interest to the Applicant for any monies held by Principal for the Applicant for any reason whatsoever.

8.    Declaration by Consultant

8.1.    I/We agree to abide by all relevant policies of Principal, applicable laws, all applicable guidelines and regulations including amendments as may be in force from time to time.

8.2.    I/We hereby confirm that I/we: (a) witnessed the signature of the Applicant(s); (b) witnessed the uploading/downloading of the Applicant(s) identification documents including but not limited to National Registration Identification Card or Passport on to the Application and/ or (c) I/we confirm that the particulars provided by the Applicant(s) in the Application are true and correct.

Important Note:
You are required to satisfactorily verify the identities and addresses of all parties and have adequate records to demonstrate that fact under the Anti Money Laundering and Counter Financing of Terrorism, Guidelines and/or Regulations. You should ensure that the names and addresses of the Applicant(s) are accurate and complete and in accordance with the relevant records.

Specific Terms & Conditions Relating to the Distribution of Third Party Funds (If Applicable)

9.    Transactions

9.1.    The Applicant hereby agrees that Principal shall be a bare custodian and not a trustee to hold and act for and on behalf of the Applicant in relation to any units of such Funds as may be invested in from time to time by the Applicant and Principal shall not recognise any trust or equity in respect of the units registered in the name of Principal at the Applicant's request. 

9.2.    The Applicant hereby appoints Principal as nominee to apply and undertake any authorised transactions on behalf of the Applicant in relation to the funds.

9.3.    Principal will hold the purchased units as registered unit holder for and on behalf of the Applicant and is authorised to request payment of and receive all dividends and other payments or distributions in relation to the units.

9.4.    Transactions for the units may be aggregated and consolidated either daily or from time to time by Principal with such transactions as placed or sent by Principal to the relevant manager of the Fund. 

9.5.    All transactions with respect to the units effected by Principal for the Applicant shall be according to the terms of the relevant Disclosure Documents of the Fund(s) and applicable laws. 

9.6.    Principal will issue a statement of account to the Applicant providing a summary of all transactions made by the Applicant during the relevant period and at such times as may be determined by Principal from time to time.

9.7.    Where Principal no longer distributes a third party fund for whatsoever reason, the Applicant agrees and acknowledges that Principal will cease to be the bare custodian and/or nominee of the Applicant. Any existing units will be directly held by the Applicant.

10.    Instructions 

10.1.    Principal may rely and act on any instruction or communication which purports to have been given (and which is reasonably accepted as having been given) by or on behalf of any person notified by the Applicant from time to time, as being authorised to instruct Principal in respect of the units by telephone, facsimile, telex or in writing whether or not the authority of any such person shall have been terminated. All instruction or communication given to Principal must be made prior to any specified cut-off times failing which such instruction or communication shall be deemed to have been received by Principal at the next business day. 

10.2.    Principal shall deal with the units according to the Applicant's instructions unless Principal notifies the Applicant that Principal believes that compliance with such instructions may not be practicable, advisable or may involve either party in a contravention of any applicable law, rule, guideline or regulation. 

10.3.    Principal will not be responsible for any loss arising from complying with instructions and the Applicant shall indemnify Principal in full in respect of any matter arising from such instructions.

11.    Delegation

11.1.    Principal may delegate any of its functions contained herein to any person/body and may provide information about the Applicant and the units to such person/body.

12.    Liability

12.1.    Neither Principal nor any of its directors, officers, employees, agents (including a Consultant) and any of its affiliates shall be liable for any direct, indirect, special or consequential damages which may be suffered and/or to be suffered by the Applicant, such as, but not limited to, loss of anticipated profits or other anticipated economic benefits, whatsoever or howsoever caused, whether in contract or in tort (which includes but is not limited to negligence), arising directly or indirectly in connection with or arising out of these terms and conditions or the units and/or the application of the units.

13.    Indemnity

13.1.    The Applicant hereby agrees to fully indemnify Principal, its employees and Consultant (collectively “Indemnified Parties”) against any and all direct and indirect losses, damages, claims, costs (on a full indemnity basis including but not limited to legal costs), fees, expenses and/ or liabilities by whatever name so called and howsoever suffered and/ or incurred by the Indemnified Parties arising out of and/ or in connection with this Application.

14.    Personal Data

Please refer to Principal’s Privacy Policy as available at our website www.principal.com.my.

15.    Wholesale Fund (if applicable)

The Applicant hereby declare that the Applicant is a Sophisticated Investor(s) (Please refer to the definition of Sophisticated Investor in our website at www.principal.com.my  or the relevant information memorandum) in accordance with Part 1, Schedule 6 and 7 of the Capital Market and Services Act 2007 including any amendment thereof and the Applicant further represent and warrant to Principal that the Applicant is qualified to invest in the relevant wholesale funds.

16.    Declaration by Applicant on Unit Trust Loan Financing Risk Disclosure Statement

Investing in a Unit Trust Fund with Borrowed Money Is More Risky than Investing with the Applicant’s Own Savings 

16.1    The Applicant should assess if loan financing is suitable for the Applicant in light of the Applicant’s objectives, attitude to risk and financial circumstances. The Applicant should be aware of the risks, which would include the following:

16.2     The higher the margin of financing (that is, the amount of money the Applicant borrow for every ringgit of the Applicant’s own money which the Applicant put in as deposit or down payment), the greater the loss or gain on the Applicant’s investment.

16.3    The Applicant should assess whether the Applicant has the ability to service the repayments on the proposed loan. If the Applicant’s loan is a variable rate loan, and if interest rates rise, the Applicant’s total repayment amount will be increased. 

16.4    If unit prices fall beyond a certain level, the Applicant may be asked to provide additional acceptable collateral (where units are used as collateral) or pay additional amounts on top of the Applicant’s normal instalments. If the Applicant fail to comply within the time prescribed, the Applicant’s units may be sold towards the settlement of the Applicant’s loan. 

16.5    Returns on unit trusts are not guaranteed and may not be earned evenly over time. This means that there may be some years where returns are high and other years where losses are experienced. Whether the Applicant eventually realise a gain or loss may be affected by the timing of the sale of the Applicant’s units. The value of units may fall just when you want your money back even though the investment may have done well in the past. 

16.6    This brief statement cannot disclose all the risks and other aspects of loan financing. The Applicant should therefore carefully study the terms and conditions before the Applicant decide to take a loan. If the Applicant is in doubt about any aspect of this risk disclosure statement or the terms of the loan financing, the Applicant should consult the institution offering the loan.

17.    Language

In the event of any inconsistency between the English and Malay language version of the Application, the English language version of the Application shall prevail.

Thank you for reading these terms and conditions. If you require any assistance, please do not hesitate to contact our Customer Care Centre at 03-7718 3000.