Lodging a Dispute with SIDREC

How do I complain to or file a claim with SIDREC?

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.

What complaints can SIDREC handle?

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.

What are eligible disputes?

An Eligible Dispute means a dispute that SIDREC can manage. There are requirements, as follows:

(i) The claim is lodged by an individual investor or a sole proprietor;

(ii) The claim is against a Member of SIDREC;

(iii) The claim relates to capital market products or services of securities such as shares and unit trusts, derivatives, fund management and private retirement schemes;

(iv) The claim is a monetary claim (for Mandatory Scheme – an amount not exceeding RM250,000 and for Voluntary Scheme – an amount of more than RM250,000); and

(v) The Eligible Claimant has referred the dispute to the Member for resolution and the Member has failed to resolve the claim to the satisfaction of the Eligible Claimant.

SIDREC classifies eligible disputes according to the issues raised. The following are the three main categories of eligible disputes, including some examples of issues that fall under each category:

(i) Service Standard. These may include delays, errors, or glitches in online systems, lapses in disclosure as well as other delays or errors in processes.

(ii) Market Conduct. These may include fraud, defalcation or misappropriation, sales practices such as mis-selling, bad advice, product suitability, inadequate disclosures, unauthorised transactions, or non-compliance with client instructions.

(iii) Member’s Practices or Policies. These include fees and charges, disclosure policy, product development and sales policy.

What types of complaints/dispute are excluded?

There are a few categories of complaints/disputes from investors which SIDREC would not be able to assist. They include matters:

• involving a Member against which a winding up order has been made, or where the
• Member has been declared to be financially insolvent by a court of law, or has been the subject of a declaration of an event of default pursuant to the Rules of the Capital Market Compensation Fund Corporation;
• arising from commercial decisions, e.g. with regard to product pricing, fees and charges or rejection of credit/margin applications, made by the Member;
• concerning the performance of a product or investment (except in respect of any alleged non-disclosure/misrepresentation by the Member in relation to such product or investment);
• which have been referred by the claimant or the Member to a court or arbitration and the case:
  
  • has been decided in the court or arbitration; or
  • is pending in the court or arbitration unless the matter is stayed for the purposes of referral of the dispute to SIDREC;
• involving matters under investigation by the Securities Commission (SC) or any other Government enforcement agencies
• authority where the SC has issued a direction under the Regulations to SIDREC not to proceed with the Dispute Resolution Process; and
• which have been time barred in accordance with the Limitation Act 1953, Limitation Ordinance (Sabah) (Cap.72) and Limitation Ordinance (Sarawak) (Cap.49) at the time it is submitted to SIDREC for resolution.

Please contact SIDREC to find out more.

Who are SIDREC members?

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.

Do I have to pay for SIDREC’s services?

SIDREC’s services are free for investors with claims not exceeding RM250,000.

Please refer to SIDREC’s Dispute Resolution Schemes for more information.

What is the minimum amount that I can claim for?

There is no minimum amount.

Under its Mandatory Scheme, SIDREC’s dispute resolution services are free for investors with monetary claims not exceeding RM250,000.

Under its Voluntary Scheme, SIDREC accepts disputes involving monetary claims above RM250,000 provided both parties agree to use SIDREC’s services.

Is there a limit to the amount I can claim?

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)

• For claims above RM250,000 (Part B of SIDREC’s TOR).
  
  • There is no claim limit for the voluntary scheme and both parties must agree to use SIDREC expert services.
• Court referred mediation (Part C of SIDREC’s TOR)
  
  • There is no claim limit for court referred mediation.

How long does it take?

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.

What if I am a foreigner or residing outside Malaysia, can I still come to SIDREC for help?

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.

Is there a time-limit for making a complaint to SIDREC?

There are generally two-time limits that you need to follow to ensure you are not time barred from submitting a claim to SIDREC:

• the six-year limitation period imposed by the Limitation Act 1953, Limitation Ordinance (Sabah) (Cap. 72) and Limitation Ordinance (Sarawak) (Cap. 49) on civil claims;
• and the requirement in SIDREC’s TOR to file a claim within 180 days from the date of receipt of a final reply on your complaint from SIDREC’s Member.

Please contact SIDREC, if you are not sure if your claim is time barred.