SIDREC on track to start operation by early 2011
The Securities Industry Dispute Resolution Center (SIDREC) is on track to start operations in early 2011 following the gazette of the Capital Markets and Services (Dispute Resolution) Regulations 2010 which come into effect on 30 Dec 2010. The new body, which has been approved by the Securities Commission Malaysia (SC), is the first dispute resolution body catered exclusively to address small claims in the Malaysian capital market.
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.