FAQ For Securities Industry Dispute Resolution Center (SIDREC) - Regulatory FAQs

FAQ For Securities Industry Dispute Resolution Center (SIDREC)

What is SIDREC?
SIDREC is a corporation established to act as a dispute resolution body for monetary claims made by individual investors against capital market intermediaries, which are members of SIDREC in relation to any dealing or transaction involving capital markets services and products.Presently, all capital market intermediaries which are corporations holding licenses under the Capital Markets and Services Act 2007 to deal in securities and futures and engage in fund management are Members of SIDREC.

SIDREC will strive to ensure that it will be resolving such claims in a fair, reasonable, timely, efficient and accessible manner.
Will I be eligible to bring a claim to SIDREC?
If you are an individual or a sole proprietor who is a client of a member of SIDREC, you are eligible to bring your claim to SIDREC.
Is there any limit to the amount of claim that I may bring to SIDREC?
Yes, all claims must be monetary in nature and is subjected to a limit of RM100,000 per claim.
Can I refer my claim directly to SIDREC without trying to resolve the claim with the capital market intermediary first?
No. SIDREC only deals with claims that have been initially lodged with the capital market intermediary concerned. You must first try to resolve the matter with your capital market intermediary. Only when the matter is not resolved to your satisfaction, or if the capital market intermediary has not given a final reply in regard to the claim within 90 days of receiving it, may you bring your claim to SIDREC.
Is there a time limit to bring my claim to SIDREC?
You must file your claim within 180 days of receiving the final reply on the dispute from the capital market intermediary.

You must also be mindful of the 6-year limitation period imposed by the Limitation Act 1953 on civil claims brought in court. SIDREC will not accept any application to resolve disputes that, had they been filed in court, would have been time-barred.
How much will it cost?
The service provided by SIDREC is free of charge to investors.
How are the claims resolved?
The merits of a claim will be investigated by a mediator who will thereafter proceed to mediate the dispute between you and the capital market intermediary. Mediation involves both you and the capital market intermediary voluntarily coming to an agreement to settle the dispute.Where you fail to come to an agreement with your capital market intermediary via mediation, the matter will decided through adjudication. The decision resulting from the adjudication process is final and binding on the capital market intermediary. However, if you are not happy with the decision, you may still pursue your complaint through other avenues, such as the courts.
How long will it take for SIDREC to resolve my claim?
SIDREC seeks to resolve all claims as expeditiously as possible, within 90 days of receiving complete documentation and information on the dispute. However, this timeframe may be extended, depending on the complexity of the dispute and level of cooperation given by parties to the mediator.
I have already begun proceedings to settle my dispute in court. May I file my claim with SIDREC?
Cases that are pending in court or arbitration may not be filed with SIDREC, unless the judge or arbitrator has stayed proceedings in order for you to file a claim with SIDREC. Ideally, however, you should withdraw your claim in court / arbitration before submitting your claim to SIDREC.If the court or arbitrator has decided on the case, the matter cannot be filed with SIDREC.
I note that there are other forms of alternative dispute resolution (ADR) available, such as arbitration, mediation and the service provided by the Financial Mediation Bureau. Are these similar to the mechanism offered by SIDREC? Are there any overlaps?
Arbitration and mediation are forms of ADR that are available to any parties in dispute. It is normally expressed in the written contract that both parties agree to resolve their dispute through these processes, and there is usually a cost element in hiring the arbitrator or mediator.SIDREC offers a mediation and adjudication service for monetary disputes particularly between investors and capital market intermediaries. Such disputes could arise from, for example, share, futures or unit trust transactions with such intermediaries. These disputes could also be resolved through mediation or arbitration processes outside SIDREC. However, SIDRECâ€™s services are free to the claimant, provided that he submits an eligible claim.

The Financial Mediation Bureau provides a similar mediation mechanism for financial services claims against financial institutions and insurance companies.
What if my stockbroker does not honour the settlement reached through mediation, or the award granted by the adjudicator?
The relevant capital market intermediaries are members of SIDREC. Should they not comply with the terms of the settlement agreement or adjudication award, they would be in breach of the Articles of Association of SIDREC and its Terms of Reference. Such breaches would have implications on their membership in SIDREC and capital market services licence.In addition, you would also be able to enforce the settlement agreement or award in court.
How is SIDREC funded?
SIDREC is mainly funded through fees, levies and subscriptions paid by its Members. However, the Securities Commission is presently financing SIDREC in its start-up phase. Members will be advised of the fees payable at a later date.

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