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Participating in the Malaysian Capital Market: Understanding SIDREC’s Role

Understanding and managing the risks when making investment decisions is a fundamental component when becoming an investor.  All investment instruments carry with them varying degrees of risks and returns. Therefore, it is crucial for investors to comprehend the levels of risks associated with their investments and to employ measures that can mitigate them.

In the event that an investor has experienced a monetary loss in their investment due to a dispute between themselves and their capital market intermediary, there are several avenues to seek financial redress. Besides the courts, an investor can also initiate Alternative Dispute Resolution towards seeking a settlement.

SIDREC is a body approved by the Securities Commission Malaysia (“SC”) to handle capital market-related disputes involving monetary loss between individuals or sole proprietors and SIDREC Members. SIDREC Members are either licensed or registered by the SC to deal in Securities, Unit Trusts, Fund Management, Derivatives and Private Retirement Schemes

SIDREC dispute resolutions services are free for investors with disputes involving claims up to RM250,000 under its Mandatory Scheme.

SIDREC’s mission is to provide the investing public and SIDREC Members with a specialised capital market dispute resolution service through a trusted, independent and impartial platform that contributes towards enhancing investor confidence to participate in the capital market.

In doing so, SIDREC also conducts Investor Education to help towards promoting greater investor understanding in their investment objectives, risk tolerance, and ultimately to contribute towards a more desirable investment experience.

A more informed investor would help reduce the likelihood of making unfavourable investment choices or decisions as they would have more knowledge of the various potential outcomes form making such investment decisions.

SIDREC investor Education activities include SIDREC’s case Managers participating at InvestSmart® events, BURSA Marketplace, BURSA Academy, the Financial Education Network and many more.

Please take advantage of SIDREC’s resources to manage investment risks effectively and do not hesitate to contact SIDREC to seek for assistance if you have a Financial Dispute with a SIDREC member