SIDREC is mandated by the Securities Commission Malaysia (SC), under the Capital Market and Services (Dispute Resolution) Regulations 2010 as a dispute resolution body to handle disputes involving monetary claims made by individual investors or sole proprietors against capital market intermediaries, who are Members of SIDREC.
SIDREC has an independent Board comprising of industry and non-industry directors. All the directors and the CEO of SIDREC may only be appointed with the prior approval of the SC. This, together with the checks and balances reflected in the Capital Markets and Services (Dispute Resolution) Regulations 2010 and SIDREC’s Terms of Reference (TOR), ensures SIDREC’s independence and impartiality at all times.
SIDREC was established by the SC to provide investors an independent and impartial avenue with capital market expertise to resolve their monetary disputes with SIDREC’s Members in a timely and cost-effective manner. SIDREC does its best to ensure that parties are adequately supported throughout the process.
SIDREC's priority is to try to mediate the dispute where it will help parties to communicate and understand each other’s side of the story and find possible solutions.
If this does not work, the matter will then proceed to adjudication subject to SIDREC’s ability to dismiss the dispute at any stages under Rule 15.2 of SIDREC’s TOR. Once SIDREC issues a decision and if the claimant accepts the decision, SIDREC’s Members are obliged to comply with it.
SIDREC’s mediators, adjudicators and case managers are experts in capital market. They are equipped with the necessary knowledge and have ample experience to help parties who come to SIDREC to resolve a dispute. As a result, the whole process gets easier as they are able to assist the parties in an informed manner.
You can call us, email or write to us. Alternatively, you can submit an enquiry form on SIDREC’s website or simply pay a visit to our office.
If a complaint is against a SIDREC Member and involves a capital market product or service provided by our Member or their representative or agent to an investor, SIDREC may be able to help.
Capital market products that come under SIDREC’s purview include securities (such as shares, unit trusts, warrants, retail bonds, structured products such as structured warrants etc.), derivatives (e.g. futures or options) and Private Retirement Schemes (PRS).
Capital market services include any service that involves a capital market product. For example, this would include all aspects of helping an investor invest in shares, unit trusts or any other securities, derivatives or PRS or carrying out fund management activities.
Please contact SIDREC if you are unsure whether your claim/complaint is within SIDREC’s purview.
There are a few categories of complaints/disputes from investors which SIDREC would not be able to assist. They include matters:
Please contact SIDREC to find out more.
SIDREC Members are holders of Capital Markets and Services Licence (CMSL) or Registered Persons under the Capital Markets and Services Act 2007 (CMSA) who are authorised to carry out dealings in securities, derivatives, private retirement schemes (PRS) and fund management services.
Members include investment banks, commercial banks, Islamic banks, stockbrokers, derivatives brokers, fund management companies, unit trust management companies, institutional unit trust advisers, corporate unit trust advisers, PRS providers and distributors and two specified development financial institutions (DFIs)
Please refer to the list here.
1. Mandatory Scheme
2. Voluntary Scheme (Part B & C of SIDREC’s TOR)
Please refer to SIDREC's Dispute Resolution Schemes for more information.
1. Mandatory Scheme (Part A of SIDREC’s TOR)
The limit for claims under the mandatory scheme is RM250,000 (excluding any fair interest).
However, if your claim exceeds this amount and if you are willing to limit your claim to RM250,000.00 (excluding any fair interest that), you may still submit a claim under the mandatory scheme.
2. Voluntary Scheme (Part B & C of SIDREC’s TOR)
SIDREC aims to resolve all claims within 90 working days from the receipt of complete documentation from both parties. However, this time frame may be extended at SIDREC’s discretion depending on the complexity of the disputes, the level of cooperation extended by the parties, any logistical impediments involving any of the parties, etc.
Yes, you can come to SIDREC for professional assistance as long as your complaint or claim is in relation to a capital market product or service provided to you by a SIDREC Member.
There are generally two-time limits that you need to follow to ensure you are not time barred from submitting a claim to SIDREC:
Please contact SIDREC, if you are not sure if your claim is time barred.
You must first make a formal complaint to the SIDREC Member concerned and explain your claim and the amount involved.
The Member will then try to resolve your problem, but in the event you are not satisfied with the outcome, you may file your claim with SIDREC.
No, SIDREC can only deal with complaints that have been initially filed with the Member.
If 90 or more days have passed since you filed the complaint and you have not received any response from the Member, you may come to SIDREC for help.
If you are unhappy with the response given by the SIDREC Member, you may come to SIDREC within 180 days from the date of receipt of the final response.
It would be helpful if you have complete documentation, but you may still come to SIDREC for consultation and submit your documents later. You are advised to submit promptly any documentation that will help support your claim upon request by SIDREC as SIDREC’s process is meant to be speedy.
No, you do not need the services of a lawyer to file a complaint with SIDREC or for any part of SIDREC’s dispute resolution process. SIDREC's case managers will assist you through the process and the mediator/adjudicator will facilitate to ensure a fair process is adhered to. Parties are free to seek advice from their lawyers. However, there are limitations to lawyers participating in SIDREC’s dispute resolution process as stated below:
1. Mandatory Scheme (Part A of SIDREC’s TOR)
2. Voluntary Scheme (Part B & C of SIDREC’s TOR)
Claims exceeding RM250,000 (Part B of SIDREC’s TOR) and court-referred mediation (Part C of SIDREC’s TOR)
Any person given permission by SIDREC to attend the meeting or hearing must abide by the SIDREC’s TOR and the spirit of SIDREC’s dispute resolution process. Where the mediator or adjudicator are of the view that a person is in any way undermining the process, the mediator or adjudicator may exclude such person from the said meeting or hearing.
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.
Mediation is an effective way of resolving disputes without the need to go to court. It involves a mediator who is an independent third party. The mediator’s role is to help the parties communicate and reach an agreement that is acceptable to both parties.
Mediation meetings are informal, practical and common sense in approach. The mediation process is a confidential one and the discussions will not be disclosed to any party outside SIDREC.
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.
Adjudication is a hearing of a dispute that will result in a decision on the dispute.
Adjudication in SIDREC’s dispute resolution avenue is available for the following schemes:
Generally, a matter will only proceed to adjudication when mediation fails. In the adjudication process, both parties will be given an opportunity to:
The adjudicator may also seek further clarification and documents from the parties or their witnesses. And after taking into account the evidence presented, facts involved, the conduct of both parties, relevant rules and laws, best industry practice and SIDREC’s precedents, the adjudicator will then make a decision by applying the principle of what is fair and reasonable under the circumstances.
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.
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.
Mandatory Scheme (Part A of SIDREC’s TOR) – Claims not exceeding RM250,000
SIDREC’s adjudication decision under the Mandatory Scheme is binding only on SIDREC’s Member. If you (the claimant) are unhappy with SIDREC’s decision, you are free to explore other avenues to resolve your complaint.
However, if you accept the decision, you would then enter into a settlement agreement with SIDREC’s Member and this will then become binding on both parties.
Voluntary Scheme (Part B of SIDREC’s TOR) – Claims exceeding RM250,000
SIDREC’s adjudication decision under the Voluntary Scheme is binding on both you (the claimant) and SIDREC’s Member.
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.
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.
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.
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.
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.
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.
Yes, parties are encouraged to do so at any point in the dispute resolution process before the issuance of an award.
A claimant may withdraw his/her complaint at any point of time before the adjudicator issues an award.
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.
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:
For filing of an appeal by claimant:
For filing of an appeal by a SIDREC Member:
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:
2. For filing of an appeal by SIDREC Member:
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.
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:
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.
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.
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.
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).
All appeals are heard and decided by the SIDREC Appeals Committee (SIAC).
SIAC consists of five (5) members appointed by SIDREC with the prior approval of the SC of whom:
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:
SIAC will then consider all appeals based on the records of the adjudication.
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.
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.
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.