UBB Amanah Berhad is a Malaysian independent private trustee that has gained a bad reputation for misleading investors through the use of dishonest business tactics.
The company asserts that it has three decades of experience in the sector and that its primary focus is assisting clients in achieving the outcomes they desire.
In addition, the company asserts that it has 2.6 million Malaysian ringgit (MYR) worth of assets held in trust by more than 18,000 consultants.
UBB Amanah Berhad’s headquarters can be found at B-G-9, Galeria Hartamas No.21, Jalan 26/70a, Desa Sri Hartamas, Kuala Lumpur, Malaysia 50480. In a similar vein, their number to reach them is 3-6211-41-99.
Below is an overview of their Board of Directors:
- Tan Sri Dr. Suleiman Mohamed (Chairman)
- Aida Othman (Managing Director)
- Dato’ Muleidaran M Navaratnam (Director)
- Dato’ George Varughese (Director)
UBB Private, UBB Investment Bank Limited, and UBB Amanah (Labuan) are some of the business’s subsidiaries. The corporation also has other subsidiaries.
The next evaluation of UBB Amanah Berhad, on the other hand, will concentrate entirely on the parent firm. You’ll discover here whether or not it’s safe to entrust them with the money you’ve worked so hard to obtain.
UBB Amanah Berhad Bank Negara: Are They Regulated?
If you search with the question “Is UBB Amanah regulated?” you are aware of the response:
Under the provisions of the Trust Companies Act (1949), UBB is a registered Trust Company. Additionally, the Companies Commission of Malaysia (SSM) serves as its supervisory body.
However, it is important to keep in mind that SSM is not a governing body for the financial industry. It is only responsible for monitoring businesses in general.
SSM Malaysia is a government body that helps to incorporate businesses and makes the information that is collected from registered companies available to the general public. That sums it up nicely.
They do not regulate the purchasing or selling of any financial investments in any way.
There is no mention of the Securities Commission Malaysia (SC) on UBB’s website, which is surprising given that the SC is Malaysia’s primary financial regulator. It is abundantly clear that they do not possess a license from SC, which renders them an extremely dubious business.
As the corporation is a trustee, according to several UBB agents, the company does not require an SC license. However, the company promises that it can provide returns of 6-8% every year but does not elaborate on how it might accomplish this.
It is very clear that UBB Amanah is exploiting legal gaps in order to market financial investments that are not subject to regulation.
This suggests that the company may be operating a Ponzi scheme.
However, recent rumors in the media suggest that UBB may soon be subject to investigation by the Securities and Exchange Commission.
Is UBB Amanah Berhad Background Under DAP National Public Complaints Bureau’s Scrutiny?
According to a recent media report, The Life Insurance Association of Malaysia, the Association of Trust Companies Malaysia, and the Malaysian Financial Planning Council with the Financial Planning Association of Malaysia complained to the DAP National Public Complaints Bureau about certain “cash trusts”.
Their complaints were about some trusts which offer extremely high returns to their clients. They suspected that these cash trusts could be Ponzi schemes.
The report did not name any specific companies, but it did say that some of these businesses claim to offer returns of up to 36% on an annual basis.
Malayan Banking Bhd (Maybank), on the other hand, offers a fixed deposit rate of 2.1 percent for a period of one year and 2.3 percent for five years. Take note that Maybank is the most valuable bank in Malaysia according to market capitalization.
Maybank had a dividend payout of 58 sen per share for the FY2021 financial year, which resulted in a yield of around 7%. According to the standards of the sector, this is an unusually high amount.
What is a Ponzi Scheme?
For the benefit of those who are unaware, a Ponzi scam is an investment in which one party guarantees an extremely high rate of returns while making it appear as though there is no risk involved.
When you put money into a Ponzi scam, the people running the plan will use some of it to pay returns to earlier investors while keeping some of it for themselves.
After that, the procedure is repeated.
They will continue to repeat this process until everything gets completely out of control and there is no more money.
When the trust company has no money remaining, you lose your deposit.
A recent example of a Ponzi scheme is Bernard Madoff. The court sentenced him to 150 years in prison for committing fraud in 2009. His firm should have had US$65 billion in assets but in reality, it had very little.
Public Complaints Bureau Chairman on Cash Trusts: Is UBB Amanah Legit?
Lim Lip Eng, Chairman of the DAP National Public Complaints Bureau and a Member of Parliament, recently gave interviews with several news outlets in which he discussed the legality of various “cash trusts.”
He brought up the fact that there are not many different financial products now available on the market. These items are being offered by certain trustee businesses, and they are part of a massive financial swindle.
Lim brought attention to the fact that these cash trusts removed RM1 billion from the market in the years 2020-21.
In addition to this, he stated that neither Bank Negara nor the Securities Commission of Malaysia (SC) is equipped to effectively regulate these trusts in their respective capacities. Therefore, these trustees are taking advantage of a few legal loopholes, which can be found throughout the law.
Legal Requirements to Become a Trustee: Why You Can’t Trust Them Easily
As I have mentioned before, UBB Amanah Berhad does not have a license from Bank Negara or the Securities Commission Malaysia (SC).
On their website, they only display an SSM Certificate of Registration as a Trust Company, under Section 4 of the Trust Companies Act 1949.
According to this act, a registrar must make inquiries as he deems necessary when he receives an application as a trust company.
Also, if the registrar is satisfied and the company meets the requirements under Section 3, he can register the same and issue it a certificate as a registered trust company.
Now, according to Section 3 of the Trust Companies Act 1949, any public company with incorporation in Malaysia can apply to the Registrar of Companies to become a trust company subject to terms and conditions.
These terms and conditions include:
- The authorized capital of the company should not be less than RM500,00.
- The company should appoint the directors according to its Articles of Association.
- Minimum RM150,000 of bona fide authorized paid-up capital.
- Deposited securities with the approval of the Minister of Finance to the value of RM100,000 with the Accountant General.
- Finally, it should be able to meet its obligations, apart from the liabilities to its shareholders, without taking into account the securities it deposited with the Accountant General.
While these requirements might seem a bit heavy, they are nothing for the kind of enterprise UBB Amanah Berhad is
UBB Amanah Berhad Review By Consumers: What People Say
When I was doing research on this trustee, I googled “UBB Amanah Berhad Review” and found an in-depth conversation regarding the company and whether or not it is a legitimate organization.
Following the completion of the conversation, it was determined that UBB Amanah is not a trustworthy company and is most likely a scam. On the other hand, a good number of UBB’s representatives presumably listened in on the conversation and started praising the company for no apparent reason.
One of the users inquired about the UBB Amanah Cash Trust, and the other users provided their responses. UBB Cash Trust came highly suggested to him by one of his other acquaintances.
However, another highly experienced user pointed out that it’s a high-risk product. So, he doesn’t recommend it.
More Comments on the Legitimacy of the Malaysian Trustee:
After some time had passed, users started talking about the Trust Act and how UBB is leveraging it to make itself seem more reliable.
One of our users mentioned that, in comparison to professional investment managers, trustees have more latitude to make decisions. However, they referred to their investors as “Donors,” which is an unusual use of words in this context.
How is it possible for a “Donor” to anticipate making a profit of 7-8% on their “donation”?
Should You Trust UBB Amanah Berhad?
After reading a variety of testimonials as well as the documents provided by the organization, it has become abundantly evident that UBB Amanah Berhad is not a dependable business.
The rewards that are being provided appear to be too wonderful to be true.
UBB Amanah exhibits all of the characteristics of a fraudulent financial scheme. The dubious business practices of the company are being protected by the company’s use of legal loopholes.
These sorts of cons are rather common. For instance, the notorious financial investment business ACE Holdings Bhd was ordered by the SC to pay back RM814 Million to its clients after the firm was detected engaging in illegal activity.
Regrettably, UBB Amanah Berhad is not now within the purview of the SC’s authority at this time. As a result, it is possible that they will be able to continue engaging in their shady tactics for a considerable amount of time.
