Filing an Appeal (Only Applicable for Claims up to RM250,000)

If I am unhappy with SIDREC’s adjudicator’s award, can I appeal?

A party may only appeal to SIDREC if the adjudicator’s award was issued under the Mandatory Scheme of the dispute resolution process.

Further, a party may appeal to SIDREC against the adjudicator’s award on the following grounds:

• a serious error of law or fact in the award; or
• the production of new evidence (which could not have been obtained with reasonable effort or diligence during adjudication), that may materially affect the award.

What is the timeframe to file an appeal?

For filing of an appeal by claimant:

• A claimant must file a prescribed Notice of Appeal identifying the grounds of appeal together with the appeal fee (RM500) with SIDREC, within five (5) working days from the date of his notification to SIDREC of his rejection of the award or deemed rejection of the award, together with the relevant appeal fee.Please note that if the claimant does not respond to inform SIDREC whether he/she wishes to accept or reject the adjudicator’s award within ten (10) working days from the date of award, he is deemed to have rejected the award.
• Further, you are also required to submit to SIDREC, the details of your grounds of appeal together with all the relevant information and necessary documents that support your appeal within ten (10) working days from the date of submission of the Notice of Appeal.

For filing of an appeal by a SIDREC Member:

• A SIDREC Member must file a prescribed Notice of Appeal identifying the grounds of appeal together appeal fee and the Security Deposit with SIDREC, within five (5) working days from the date of notification of the claimant’s acceptance of the Award.
• Further, the SIDREC Member is also required to submit to SIDREC, the details of the grounds of appeal together with all the relevant information and necessary documents that support the appeal within ten (10) working days from the date of submission of the Notice of Appeal.

How can I appeal against the Adjudicator’s Award?

The Appealing Party must comply with the appeal process that is set out in Rule 23 of SIDREC’s TOR. A Notice of Appeal identifying the grounds of appeal should be submitted within the prescribed time frame and:

1. For filing of an appeal by claimant:

• If the appealing party is a claimant, you are required to submit the following documents to SIDREC within five (5) working days from the date of the notification to SIDREC of the rejection of the award or deemed rejection of the award:
  
  • a duly completed Notice of Appeal stating the ground/basis of appeal; an
  • a banker’s cheque for a sum of RM500 payable to “Securities Industry Dispute Resolution Center” being the non-refundable appeal fee.
• Thereafter, you are required to submit to SIDREC, the details of your grounds of appeal together with all the relevant information and necessary documents that support your appeal within ten (10) working days from the date of submission of the Notice of Appeal.

2. For filing of an appeal by SIDREC Member:

• If the appealing party is a SIDREC Member, you are required to submit the following documents to SIDREC within five (5) working days from the date of notification of the claimant’s acceptance of the award:
  
  • a duly completed Notice of Appeal stating the ground/basis of appeal;
  • the relevant non-refundable appeal fee as prescribed under Annexure of SIDREC’s Terms of Reference; and
  • a security deposit for a sum equivalent to 50% of the amount of the Adjudicator’s Award in the form of a bank guarantee naming SIDREC as beneficiary or a banker’s cheque payable to “Securities Industry Dispute Resolution Center”, where applicable.
• Thereafter, the SIDREC Member is required to submit to SIDREC, the details of the grounds of appeal together with all the relevant information and necessary documents that support the appeal within ten (10) working days from the date of submission of the Notice of Appeal.The Appealing Party is required to forward a copy of the above documents to the Responding Party on the same day the documents are forwarded to SIDREC.

You are also advised to ensure that you file the Notice of Appeal as soon as possible within the prescribed timeframe. Please do not wait till the last minute.

Kindly contact SIDREC if you are unsure whether the ground/basis which you intend to rely on falls under the prescribed grounds of the limited appeal permitted by SIDREC.

I was aware of an evidence but I did not produce it during mediation/adjudication process because I was unsure whether it will help my case or not. Can I use that evidence as a ground to file an appeal?

No, if you already had the evidence but  did not use it, you are not permitted to use the evidence as it will not satisfy the ground. If you wish to rely on the ground of “production of new evidence” you must fulfil the two criteria below:

• The new evidence would have a material impact on the award; and
• Despite reasonable effort or diligence, you were not able to obtain the said evidence during the mediation/adjudication process.

Therefore, all parties are advised to go through all evidences that would support their case and submit them to SIDREC as early as possible. A party is not allowed to file an appeal on this ground merely because he had failed to properly prepare his case at adjudication.

I wish to appeal against the Adjudicator’s Award. Do I need to pay any fee to SIDREC?

As a claimant, you need only pay RM500 to appeal. Regardless of the outcome, the appeal fee is not refundable. A SIDREC Member is not required to pay the appeal fee. Only the appealing party has to pay for the appeal fee.

When do I need to pay the appeal fee?

The fee must be paid to SIDREC together with the Notice of Appeal. Otherwise, SIDREC will not accept the filing of the Notice of Appeal.

Other than the appeal fee, are there any other fees that I have to pay to SIDREC?

There are no other payable fees. Nevertheless, you will have to bear any other professional or personal expenses that you may incur, for example, travel cost, legal cost (if you choose to seek advice from lawyers) or translator cost (if applicable).

What are the factors which can cause an Appeal to be considered as an Ineligible Appeal?

Some examples:

• The grounds/reasons for the appeal do not meet the requirements set out in Rule 22 of SIDREC’s TOR.
• Incomplete Notice of Appeal. The Notice of Appeal must be completed with all required details and supporting documents (where applicable). It needs to specifically set out what are the ground/basis that the appealing party seeks to rely on with sufficient details.
• The Notice of Appeal, the supporting documents and the relevant fees are not filed with SIDREC within the specified time frame.
• If the appeal is filed by a Member and the Member fails to submit the requisite security deposit for a sum equivalent to 50% of the amount of the award.
• If the terms in the bank guarantee submitted by a Member as security deposit is not acceptable to SIDREC.

Can I be represented by a lawyer at the appeal stage?

• Neither party is allowed to bring in their lawyer or be represented by their lawyer in SIDREC’s dispute resolution process.
• Many claimants under this category are not able to afford lawyers and SIDREC provides investors with the avenue for free expert help to resolve their disputes.
• However, SIDREC is not able to provide legal advice and understand that you may feel the need for a lawyer’s counsel. As such, parties are free to seek the advice of lawyers to help prepare or support them. However, the lawyers are not allowed to participate in the dispute resolution process.

Who hears the appeal?

All appeals are heard and decided by the SIDREC Appeals Committee (SIAC).

Who appoints SIAC members and what is the composition of the Members?

SIAC consists of five (5) members appointed by SIDREC with the prior approval of the SC of whom:

• two shall be independent members, one of whom shall be the Chairman of SIAC;
• one shall be a senior representative of the Securities Commission;
• one shall be a member of the Board of Directors of SIDREC; and
• one shall be an individual with industry knowledge and experience.

What is the appeal process?

Once SIDREC receives the Notice of Appeal, a review will be carried out to determine the eligibility of the appeal.

SIDREC will then make a recommendation to the SIAC on the eligibility of the appeal. If the SIAC agrees with SIDREC’s recommendation, SIDREC will then proceed to inform the parties involved of the decision.

Eligible appeals will then proceed to the next stage. Depending on the facts or the circumstances of the case, the SIAC Chairman has the discretion to decide on the mode of deliberation, whether it will be by way of a physical hearing or written submission of the parties.

If the deliberation is e by way of a physical hearing, SIDREC will fix the hearing date and inform all the parties involved.

If the deliberation is by way of a written submission, the process will be as follows:

• within 10 working days after the appeal became an eligible appeal, the responding party needs to file a written response to the Notice of Appeal. Service of the written response must be done on the same day for both the appealing party and SIDREC.
• the appealing party has ten (10) working days to file a written reply to the written response filed by the responding party. Service of the written reply must be done on the same day for both the responding party and SIDREC.

SIAC will then consider all appeals based on the records of the adjudication.

How long do I need to wait for the appeal decision?

SIAC will decide on an appeal within sixty (60) working days from the date the appeal is filed. However, SIAC has the discretion to extend the timeframe where it sees fit and necessary.

Is SIAC’s decision binding on the claimant and Members?

SIAC’s decision is final and shall be binding on all parties regardless whether the parties have executed a settlement agreement or whether the parties participated in the appeal.

Nevertheless, if the appeal is filed by a Member, the claimant has an option to reject SIAC’s decision. If the claimant opts to reject SIAC’s decision, the Member is not obliged to comply with the SIAC’s decision. In such an event, the claimant is free to pursue his/her claim through other avenues.

What happens if a Member refuses to comply with SIAC’s deciaion?

If a Member does not comply with SIAC’s decision, this would amount to a breach of SIDREC’s rules and the Capital Markets and Services (Dispute Resolution) Regulations 2010, as well as the SC’s licensing conditions as set out in the SC’s Licensing Handbook. SIDREC will notify the SC of the non-compliance by the Member concerned for SC’s further action. SIDREC will stand advised by any directive issued by the SC on the matter.