Case Management, Mediation & Adjudication

What happens when I submit a complaint to SIDREC?

After you have submitted your complaint, SIDREC will then assess the eligibility of your claim/complaint, followed by an assessment on the merits of the claim. During the merit assessment, SIDREC may dismiss your claim/complaint pursuant to its TOR, inter alia, if the claim is found to be clearly unsustainable against the Member concerned, or if the claim is frivolous and vexatious (causing or tending to cause annoyance, frustration, or worry). In addition, SIDREC may also dismiss the dispute at any stage in the dispute resolution process.

If your claim passes the initial assessment, the matter will then proceed to mediation, where our mediator will try to help the parties to resolve the dispute. If the parties fail to reach an agreement through mediation, the matter will then proceed to adjudication, during which SIDREC’s adjudicator will conduct a hearing of the matter and issue a decision.

What is Mediation?

Mediation is an alternative method of resolving disputes conducted by way of an informal discussion.

It is moderated by a mediator who is an independent and impartial party.

The mediator’s role is to help the parties communicate and reach an agreement and outcome that is acceptable to both parties.

The mediation process is confidential and the discussions may not be disclosed to any party outside of SIDREC’s dispute resolution process.

What is a Mediator?

A mediator is a neutral third party who interposes between two conflicting parties for the purpose of assisting them in settling their differences. The mediator’s role is to listen to the parties, help the parties understand each other’s viewpoints regarding the dispute and facilitate the negotiation of a voluntary resolution to the case.

What is Adjudication?

Adjudication is a hearing of a dispute by an adjudicator who will make a decision on the dispute.

Who is an Adjudicator?

An adjudicator presides over disputes and helps to determine the issues for dispute settlements. Adjudicators are experienced professionals in their respective industry and are experts of related subject matters. During the adjudication process, adjudicators are responsible for reviewing evidence and documents as well as conducting assessment of the merits of the case for each party.

What is the difference between Mediation and Adjudication?

While both mediation and adjudication are dispute settlement processes, mediation is an informal negotiation between the parties with the assistance of a neutral third party who acts as a mediator.

On the other hand, in adjudication, the adjudicator will listen to the arguments submitted by both parties and give a decision based on the gathered evidence and merits of the case for each party. While it is less formal than a normal court proceeding, the adjudicator, in a way, acts like a judge. Unlike a mediator who helps disputing parties reach an agreement that is acceptable by both, an adjudicator will assess the case and give his/her own decision on the case.

Is the decision binding on all parties?

SIDREC’s adjudication decision under the Mandatory Scheme is binding only on SIDREC’s Member. If the claimant is unhappy with SIDREC’s decision, they are free to explore other avenues to resolve their complaint.

However, if the claimant accepts the decision, they would then enter into a settlement agreement with SIDREC’s Member and this will then become binding on both parties.

For the Voluntary Scheme where claims exceed RM250,000, SIDREC’s adjudication decision under the Voluntary Scheme is binding on both the claimant and SIDREC’s Member.

Can I call an expert witness to support my case?

Yes, you may do so. However, you must obtain the prior consent of SIDREC. You are required to furnish SIDREC with the name, qualification, specialised knowledge/experience of the expert witness and the reason for calling the expert witness for SIDREC to decide on the requisite consent.

If I am not fluent in Bahasa Malaysia and English, what should I do?

You may be assisted by any person who can act as your interpreter, but you must obtain prior consent from SIDREC. In such circumstances, you will need to furnish SIDREC with the particulars of the person including his/her name, contact details, identity card number, education level, occupation, etc.

Can my friend or family member accompany me during SIDREC’s dispute resolution process?

A third party may only attend the mediation sessions or adjudication hearings with you with the prior approval from SIDREC. Generally, due to the confidential nature of the proceedings, SIDREC does not entertain requests for participation by third parties. However, in some exceptional circumstances, SIDREC may exercise its discretion to allow it. For example, if the claimant is elderly and needs assistance.

Some documents to support my claim are with the SIDREC Member. What should I do?

You should write to the Member to request a copy of the same. As a client/customer of the Member, you are entitled to have a copy of your statement of accounts, the account application form, payment receipts, etc. If you encounter problems obtaining such documents from the Member, please let the case manager know.

Can I refuse to provide any material/documents/information that SIDREC request?

If any party fails or refuses to provide any material evidence within in his/her control (which includes any audio/visual or digital data, documents, information or witnesses) requested by SIDREC without an acceptable reason to SIDREC, the adjudicator or the SIDREC Appeals Committee (SIAC) (where applicable) may draw an ‘adverse inference’, i.e. that the party is seeking to conceal facts that are not in his/her favour. Failure to provide the information requested may, therefore, be prejudicial to your case.

Am I required to provide the evidence that I forwarded to SIDREC to the other party?

If a party wishes the adjudicator to take into account the documents furnished by him/her, he/she should furnish a copy of the evidence to the other party. This is to give the other party the opportunity to respond to accordingly. Otherwise, the adjudicator will not take the said evidence into account.

SIDREC’s overarching principle will always be what is fair and reasonable for the case.

During SIDREC’s dispute resolution process, can either party still make an offer in order to settle the dispute amicably?

Yes, parties are encouraged to do so at any point in the dispute resolution process before the issuance of an award.

Can I withdraw my claim/complaint after lodging a claim with SIDREC?

A claimant may withdraw his/her complaint at any point of time before the adjudicator issues an award.

What happen if a Member does not comply with SIDREC’s decision?

If a Member does not comply with SIDREC’s decision, it would tantamount to a breach of SIDREC’s rules and the Capital Markets and Services (Dispute Resolution) Regulations 2010, as well as the Securities Commission Malaysia’s (SC) licensing conditions as set out in the SC’s Licensing Handbook.

SIDREC will then notify the SC of the non-compliance by the Member concerned for the SC’s further action. SIDREC will stand advised by any directive issued by the SC on the matter.