What do you do when you have an investment dispute?
05 July 2017
Many who invest in the capital markets think the only solution when they have problems with their bank, broker, fund manager or their agent, is to file a lawsuit. They do not realise that there are alternative dispute resolution (ADR) avenues to resolve disputes.
SIDREC is empowered to help both the investor and the capital market intermediary through its dispute resolution process, first to find a resolution through mediation and then a final decision through adjudication, if mediation does not work out.
If you are an investor in the capital markets using Malaysian licensed/registered intermediaries (e.g. bank, broker, fund manager or their agent), SIDREC’s ADR service is free of charge, if your claim is up to RM250,000.
If the claim is above RM250,000, we can still help at a reasonable fee if both parties agree to use SIDREC’s services.
Our process is simple and confidential. Our aim is to help parties resolve their disputes involving financial/capital market products.
Our case manager will guide you through the process and ensure we have all the facts and information needed to help. Mediation meetings and adjudication hearings will be undertaken by experienced mediators/adjudicators with capital market expertise.
SIDREC places priority on ensuring that our processes and rules are subject to robust review to ensure they remain relevant and support the integrity and quality of our services. We are committed to the sustainable building of capacity and expertise to keep in step with global best practice that is relevant to domestic market needs.
Why you should seek SIDREC’s services for mediation and dispute resolution?
Confidentiality of proceedings allow issues to be addressed constructively without distractions.
An ‘independent and impartial voice of reason’ – with no attachment to outcome.
Promotes good communications and conduct on the part of all parties.
Independent and impartial mediator/adjudicator with industry knowledge and access to specialist expertise, as required.
Contributes to preserving harmony and building relationships.
A good risk management tool for investors and the market intermediary – identification and understanding of issues that may otherwise not have been considered.
Reduces legal costs of investors and the market intermediary while providing certainty and closure.
Investors become better informed, acquiring an enhanced understanding and knowledge of the market and their own rights and responsibilities.
Market intermediaries are better informed of investors’ practical concerns and challenges.
If you have an investment dispute that you can’t resolve, whether it be with your bank, broker, fund manager or agent; or persons authorised to deal in securities, unit trusts, derivatives, or private retirement schemes (PRS), do not hesitate to call us for help. Read more in our FAQs.
SC Chairman Tan Sri Zarinah Anwar said, “SIDREC will enhance investor protection by affording investors with small claims access to settlement of disputes without the need to resort to expensive litigation”
Dato’ Ranita binti Mohd Hussein, the newly appointed Chairman of SIDREC said, “SIDREC provides a mediation and adjudication mechanism aimed at investors who have claims of RM100,000 or less arising from transactions involving capital market products and/or services. The facility is provided free to eligible individuals and sole proprietorships. One of SIDREC’s immediate priorities is to educate the investing public on SIDREC’s functions and how it can help investors”.
Dato’ Ranita is joined on the Board of Directors of SIDREC by a group of distinguished representatives from the capital market industry as well as the private and public sectors, namely Tan Sri Dato’ Sri Hamad Kama Piah Bin Che Othman, Dato’ Kok Wee Kiat, Dato’ Saiful Bahri Bin Zainuddin, Dato’ Ambiga Sreenevasan, Dato’ Halipah Binti Esa and Mr Raymond Tang Chee Kin.
SIDREC is a body corporate established to act as a dispute resolution body in relation to any claims made by eligible claimants against any person licensed to carry out the activities of dealing in securities, trading in futures contracts and fund management under the Capital Markets and Services Act 2007. In essence, SIDREC will provide dispute resolutions in any dealing or transaction involving capital market products or services between clients and their securities brokers, futures brokers, fund managers and unit trust management companies.
An investor who brings a claim to SIDREC will be attended to by a mediator, who will look into his/her claim and conduct enquiries with both the claimant and the party complained against. The mediator will bring the two parties together with the aim of resolving the claim amicably. If this mediation process fails, the matter will proceed to adjudication within SIDREC. The decision and award granted by SIDREC is binding on the capital market licence holder. However, the claimant is free to pursue his claim in court if he is dissatisfied with the mediator’s decision.
In our previous article SIDREC to Capital Market Investors: We’ve Got Your Back! (Part 1), Sujatha Sekhar Naik, CEO of SIDREC talked about the scope of services that SIDREC provides, and the types of cases and monetary claims and limitations when coming to SIDREC for dispute resolution.
SIDREC was established by Securities Commissions Malaysia under the Capital Markets and Services (Dispute Resolution) Regulations 2010 to provide an alternative dispute resolution (ADR) avenue for the investing public to resolve their investment disputes involving monetary claims with licensed and registered capital market service providers (CMSPs).
Sujatha Sekhar Naik, CEO of SIDREC was recently interviewed for the feature Protecting Yourself From Investment Scams in Smart Investor, in which investors are taught how to identify and avoid investment scams.
Our Partners & Associates:
Securities Industry Dispute Resolution Center (201001025669)
Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama 1 59000 Kuala Lumpur