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 for dealing in securities, trading in futures contracts and engaging in fund management are Members of SIDREC. The list of Members can be found here.

SIDREC will strive to ensure that it will resolve such claims in a fair, reasonable, timely, efficient and accessible manner.

If you have submitted your claim to the capital market intermediary concerned and it has given its final decision or reply on your claim, you must file your dispute to SIDREC within 180 days of receiving the intermediary’s final decision, if you are dissatisfied with the said final reply.

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.

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. If you accept the decision resulting from the adjudication process, it is final and binding on the capital market intermediary.

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.

If the court or arbitrator has decided on the case, the matter cannot be filed with SIDREC.

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, its Terms of Reference as well as the Capital Markets and Services (Dispute Resolution) Regulations 2010. 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.

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, SIDREC’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.