SIDREC is a body approved by the Securities Commission Malaysia (SC) to handle capital market-related monetary disputes between individuals or sole proprietors and providers of capital market products and services who are SIDREC Members.
SIDREC Members include banks, stockbrokers, unit trust management companies, fund managers and private retirement scheme providers and distributors.
SIDREC is mandated by the Securities Commission Malaysia (SC), under the Capital Market and Services (Dispute Resolution) Regulations 2010 as a dispute resolution body to handle disputes involving monetary claims made by individual investors or sole proprietors against capital market intermediaries, who are Members of SIDREC.
SIDREC has an independent Board comprising of industry and non-industry directors. All the directors and the CEO of SIDREC may only be appointed with the prior approval of the SC. This, together with the checks and balances reflected in the Capital Markets and Services (Dispute Resolution) Regulations 2010 and SIDREC’s Terms of Reference (TOR), ensures SIDREC’s independence and impartiality at all times.
SIDREC provides case management, mediation and adjudication services to both parties to achieve a resolution for their dispute in an independent, impartial and effective manner.
SIDREC was established by the SC to provide investors an independent and impartial avenue with capital market expertise to resolve their monetary disputes with SIDREC’s Members in a timely and cost-effective manner. SIDREC does its best to ensure that parties are adequately supported throughout the process.
SIDREC's priority is to try to mediate the dispute where it will help parties to communicate and understand each other’s side of the story and find possible solutions.
If this does not work, the matter will then proceed to adjudication subject to SIDREC’s ability to dismiss the dispute at any stages under Rule 15.2 of SIDREC’s TOR. Once SIDREC issues a decision and if the claimant accepts the decision, SIDREC’s Members are obliged to comply with it.
SIDREC’s mediators, adjudicators and case managers are experts in capital market. They are equipped with the necessary knowledge and have ample experience to help parties who come to SIDREC to resolve a dispute. As a result, the whole process gets easier as they are able to assist the parties in an informed manner.
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.
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.
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.
There are a few categories of complaints/disputes from investors which SIDREC would not be able to assist. They include matters:
Please contact SIDREC to find out more.
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.
SIDREC’s services are free for investors with claims not exceeding RM250,000.
Please refer to SIDREC's Dispute Resolution Schemes for more information.
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.
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)
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.
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.
There are generally two-time limits that you need to follow to ensure you are not time barred from submitting a claim to SIDREC:
Please contact SIDREC, if you are not sure if your claim is time barred.
One of the pre-conditions for filing a claim with SIDREC is that an investor must have first filed a complaint against the relevant SIDREC Member through its internal dispute resolution process. Following this:
(i) Where the SIDREC Member has attempted to resolve the complaint and the investor is not satisfied with the final reply of the SIDREC Member on the complaint, the investor may file a claim with SIDREC within 180 days from the date of receipt of the Member’s final reply on their complaint; or
(ii) Where the SIDREC Member has not resolved the complaint through its internal dispute resolution process within 90 days after receipt of the complaint, the investor may file the claim with SIDREC.
In filing your claim, you may download a copy of the Dispute/Claim Form.
It would be helpful if you have complete documentation, but you may still come to SIDREC for consultation and submit your documents later. You are advised to submit promptly any documentation that will help support your claim upon request by SIDREC as SIDREC’s process is meant to be speedy.
No, you do not need the services of a lawyer to file a complaint with SIDREC or for any part of SIDREC’s dispute resolution process. SIDREC's case managers will assist you through the process and the mediator/adjudicator will facilitate to ensure a fair process is adhered to. Parties are free to seek advice from their lawyers. However, there are limitations to lawyers participating in SIDREC’s dispute resolution process as stated below:
1. Mandatory Scheme (Part A of SIDREC’s TOR)
2. Voluntary Scheme (Part B & C of SIDREC’s TOR)
Claims exceeding RM250,000 (Part B of SIDREC’s TOR) and court-referred mediation (Part C of SIDREC’s TOR)
Any person given permission by SIDREC to attend the meeting or hearing must abide by the SIDREC’s TOR and the spirit of SIDREC’s dispute resolution process. Where the mediator or adjudicator are of the view that a person is in any way undermining the process, the mediator or adjudicator may exclude such person from the said meeting or hearing.
After you have submitted your complaint, SIDREC will then assess the eligibility of your claim/complaint, followed by an assessment on the merits of the claim. During the merit assessment, SIDREC may dismiss your claim/complaint pursuant to its TOR, inter alia, if the claim is found to be clearly unsustainable against the Member concerned, or if the claim is frivolous and vexatious (causing or tending to cause annoyance, frustration, or worry). In addition, SIDREC may also dismiss the dispute at any stage in the dispute resolution process.
If your claim passes the initial assessment, the matter will then proceed to mediation, where our mediator will try to help the parties to resolve the dispute. If the parties fail to reach an agreement through mediation, the matter will then proceed to adjudication, during which SIDREC’s adjudicator will conduct a hearing of the matter and issue a decision.
Mediation is an alternative method of resolving disputes conducted by way of an informal discussion.
It is moderated by a mediator who is an independent and impartial party.
The mediator’s role is to help the parties communicate and reach an agreement and outcome that is acceptable to both parties.
The mediation process is confidential and the discussions may not be disclosed to any party outside of SIDREC’s dispute resolution process.
A mediator is a neutral third party who interposes between two conflicting parties for the purpose of assisting them in settling their differences. The mediator’s role is to listen to the parties, help the parties understand each other’s viewpoints regarding the dispute and facilitate the negotiation of a voluntary resolution to the case.
Adjudication is a hearing of a dispute by an adjudicator who will make a decision on the dispute.
An adjudicator presides over disputes and helps to determine the issues for dispute settlements. Adjudicators are experienced professionals in their respective industry and are experts of related subject matters. During the adjudication process, adjudicators are responsible for reviewing evidence and documents as well as conducting assessment of the merits of the case for each party.
While both mediation and adjudication are dispute settlement processes, mediation is an informal negotiation between the parties with the assistance of a neutral third party who acts as a mediator.
On the other hand, in adjudication, the adjudicator will listen to the arguments submitted by both parties and give a decision based on the gathered evidence and merits of the case for each party. While it is less formal than a normal court proceeding, the adjudicator, in a way, acts like a judge. Unlike a mediator who helps disputing parties reach an agreement that is acceptable by both, an adjudicator will assess the case and give his/her own decision on the case.
SIDREC’s adjudication decision under the Mandatory Scheme is binding only on SIDREC’s Member. If the claimant is unhappy with SIDREC’s decision, they are free to explore other avenues to resolve their complaint.
However, if the claimant accepts the decision, they would then enter into a settlement agreement with SIDREC’s Member and this will then become binding on both parties.
For the Voluntary Scheme where claims exceed RM250,000, SIDREC’s adjudication decision under the Voluntary Scheme is binding on both the claimant and SIDREC’s Member.
Yes, you may do so. However, you must obtain the prior consent of SIDREC. You are required to furnish SIDREC with the name, qualification, specialised knowledge/experience of the expert witness and the reason for calling the expert witness for SIDREC to decide on the requisite consent.
You may be assisted by any person who can act as your interpreter, but you must obtain prior consent from SIDREC. In such circumstances, you will need to furnish SIDREC with the particulars of the person including his/her name, contact details, identity card number, education level, occupation, etc.
A third party may only attend the mediation sessions or adjudication hearings with you with the prior approval from SIDREC. Generally, due to the confidential nature of the proceedings, SIDREC does not entertain requests for participation by third parties. However, in some exceptional circumstances, SIDREC may exercise its discretion to allow it. For example, if the claimant is elderly and needs assistance.
You should write to the Member to request a copy of the same. As a client/customer of the Member, you are entitled to have a copy of your statement of accounts, the account application form, payment receipts, etc. If you encounter problems obtaining such documents from the Member, please let the case manager know.
If any party fails or refuses to provide any material evidence within in his/her control (which includes any audio/visual or digital data, documents, information or witnesses) requested by SIDREC without an acceptable reason to SIDREC, the adjudicator or the SIDREC Appeals Committee (SIAC) (where applicable) may draw an ‘adverse inference’, i.e. that the party is seeking to conceal facts that are not in his/her favour. Failure to provide the information requested may, therefore, be prejudicial to your case.
If a party wishes the adjudicator to take into account the documents furnished by him/her, he/she should furnish a copy of the evidence to the other party. This is to give the other party the opportunity to respond to accordingly. Otherwise, the adjudicator will not take the said evidence into account.
SIDREC’s overarching principle will always be what is fair and reasonable for the case.
Yes, parties are encouraged to do so at any point in the dispute resolution process before the issuance of an award.
A claimant may withdraw his/her complaint at any point of time before the adjudicator issues an award.
If a Member does not comply with SIDREC’s decision, it would tantamount to a breach of SIDREC’s rules and the Capital Markets and Services (Dispute Resolution) Regulations 2010, as well as the Securities Commission Malaysia’s (SC) licensing conditions as set out in the SC’s Licensing Handbook.
SIDREC will then notify the SC of the non-compliance by the Member concerned for the SC’s further action. SIDREC will stand advised by any directive issued by the SC on the matter.
A party may only appeal to SIDREC if the adjudicator’s award was issued under the Mandatory Scheme of the dispute resolution process.
Further, a party may appeal to SIDREC against the adjudicator’s award on the following grounds:
For filing of an appeal by claimant:
For filing of an appeal by a SIDREC Member:
The Appealing Party must comply with the appeal process that is set out in Rule 23 of SIDREC’s TOR. A Notice of Appeal identifying the grounds of appeal should be submitted within the prescribed time frame and:
1. For filing of an appeal by claimant:
2. For filing of an appeal by SIDREC Member:
You are also advised to ensure that you file the Notice of Appeal as soon as possible within the prescribed timeframe. Please do not wait till the last minute.
Kindly contact SIDREC if you are unsure whether the ground/basis which you intend to rely on falls under the prescribed grounds of the limited appeal permitted by SIDREC.
No, if you already had the evidence but did not use it, you are not permitted to use the evidence as it will not satisfy the ground. If you wish to rely on the ground of “production of new evidence” you must fulfil the two criteria below:
Therefore, all parties are advised to go through all evidences that would support their case and submit them to SIDREC as early as possible. A party is not allowed to file an appeal on this ground merely because he had failed to properly prepare his case at adjudication.
As a claimant, you need only pay RM500 to appeal. Regardless of the outcome, the appeal fee is not refundable. A SIDREC Member is not required to pay the appeal fee. Only the appealing party has to pay for the appeal fee.
The fee must be paid to SIDREC together with the Notice of Appeal. Otherwise, SIDREC will not accept the filing of the Notice of Appeal.
There are no other payable fees. Nevertheless, you will have to bear any other professional or personal expenses that you may incur, for example, travel cost, legal cost (if you choose to seek advice from lawyers) or translator cost (if applicable).
All appeals are heard and decided by the SIDREC Appeals Committee (SIAC).
SIAC consists of five (5) members appointed by SIDREC with the prior approval of the SC of whom:
Once SIDREC receives the Notice of Appeal, a review will be carried out to determine the eligibility of the appeal.
SIDREC will then make a recommendation to the SIAC on the eligibility of the appeal. If the SIAC agrees with SIDREC’s recommendation, SIDREC will then proceed to inform the parties involved of the decision.
Eligible appeals will then proceed to the next stage. Depending on the facts or the circumstances of the case, the SIAC Chairman has the discretion to decide on the mode of deliberation, whether it will be by way of a physical hearing or written submission of the parties.
If the deliberation is e by way of a physical hearing, SIDREC will fix the hearing date and inform all the parties involved.
If the deliberation is by way of a written submission, the process will be as follows:
SIAC will then consider all appeals based on the records of the adjudication.
SIAC will decide on an appeal within sixty (60) working days from the date the appeal is filed. However, SIAC has the discretion to extend the timeframe where it sees fit and necessary.
SIAC’s decision is final and shall be binding on all parties regardless whether the parties have executed a settlement agreement or whether the parties participated in the appeal.
Nevertheless, if the appeal is filed by a Member, the claimant has an option to reject SIAC’s decision. If the claimant opts to reject SIAC’s decision, the Member is not obliged to comply with the SIAC’s decision. In such an event, the claimant is free to pursue his/her claim through other avenues.
If a Member does not comply with SIAC’s decision, this would amount to a breach of SIDREC’s rules and the Capital Markets and Services (Dispute Resolution) Regulations 2010, as well as the SC’s licensing conditions as set out in the SC’s Licensing Handbook. SIDREC will notify the SC of the non-compliance by the Member concerned for SC’s further action. SIDREC will stand advised by any directive issued by the SC on the matter.