What do you do when you have an investment dispute?
July 5, 2017
(Updated as of 10 August 2022)
Many investors think that the only solution when faced with monetary losses with their bank, broker, fund manager or their agent, is to file a claim in court. They do not realise that there are alternative dispute resolution (“ADR”) avenues to resolve disputes.
SIDREC is a body corporate approved by the Securities Commission Malaysia (“SC”) to handle capital market-related monetary disputes between individual l investors or sole proprietors and SIDREC Members through its dispute resolution process (“DRP”). SIDREC Members are capital market intermediaries who are licensed/registered to carry out the activities or dealing in securities, derivatives, private retirement scheme (“PRS”) and fund management under the Capital Markets and Services Act 2007., SIDREC’s DRP consist of three stages – case management (which includes conducting the eligibility assessment and investigation of a claim), mediation and adjudication, if a resolution at mediation is unsuccessful.
If you are a retail investor or sole proprietor who invests in capital market product or service through a Malaysian licensed/registered capital market intermediaries (e.g. bank, broker, fund manager or their agent), SIDREC’s ADR service is free of charge, if your claim is up to RM250,000, which falls under SIDREC’s mandatory scheme.
If the claim is above RM250,000, which falls under SIDREC’s voluntary scheme, we can still help at a reasonable fee if both parties agree to use SIDREC’s ADR services.
Our DRP is cost effective and confidential.
Once a dispute/claim form is filed at SIDREC, our case managers will guide you through the DRP and ensure we have all the facts and information needed to help. Mediation sessions and adjudication hearings will be undertaken by SIDREC’s panel of experienced mediators/adjudicators.
SIDREC places priority on ensuring that our DRP and rules are subject to robust review to ensure they remain relevant and support the integrity and quality of our services. We are committed to the sustainable building of capacity and expertise to keep in step with global best practice that is relevant to domestic market needs.
Why you should seek SIDREC’s dispute resolution services?
Confidentiality of process allows issues to be addressed constructively.
An ‘independent and impartial voice of reason’ – with no attachment to outcome.
Promotes open communication and conduct of parties.
Independent and impartial mediator/adjudicator with industry knowledge and access to specialist expertise, as required.
Contributes to preserving harmony and building relationships.
A good risk management tool for investors and the capital market intermediary – identification and understanding of issues that may otherwise not have been considered.
Reduces legal costs of investors and the capital market intermediary while providing certainty and closure.
Investors become better informed, acquiring an enhanced understanding and knowledge of the capital market and their own rights and responsibilities.
If you have suffered a monetary loss from your capital market investment (not due to commercial decisions by the capital market intermediary or performance of your investment) and unable to obtain a resolution from the capital market intermediary upon an official complaint being made, do not hesitate to call us for help. Read more in our FAQs.
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.
An individual investor or sole proprietor who brings a claim to SIDREC will be attended to by a case manager, who will look into his/her claim and conduct enquiries with both the claimant and the SIDREC Member. At a mediation session, 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 at SIDREC. The decision and award granted by SIDREC is binding on the SIDREC Member. However, the claimant is free to pursue his/her claim in court if he/she does not accept the adjudicator’s decision under SIDREC’s mandatory scheme. Under SIDREC’s voluntary scheme, the claimant and SIDREC Member are bound by the adjudicator’s decision.
SIDREC was established by Securities Commissions Malaysia under the Capital Markets and Services (Dispute Resolution) Regulations 2010 to provide an alternative dispute resolution (ADR) avenue for the investing public to resolve their investment disputes involving monetary claims with licensed and registered capital market service providers (CMSPs).