SIDREC (Securities Industry Dispute Resolution Center), established by the Securities Commission Malaysia (SC), provides investors with an independent and fair channel to resolve investment disputes.

Role and Responsibilities of SIDREC

SIDREC is an independent institution established by the Securities Commission Malaysia (SC) to offer impartial and independent dispute resolution services. Its purpose is to protect investors' rights and promote the healthy development of the financial market.

As a dispute resolution center, SIDREC is dedicated to resolving disputes between investors and financial service providers through mediation or adjudication, ensuring fairness and transparency in the financial market.

SIDREC was created to provide investors with an independent platform for resolving financial disputes with securities industry institutions. Its main responsibilities include:

• Independent Mediation: SIDREC helps investors and financial institutions resolve disputes through independent mediation processes, ensuring fairness and neutrality.
• Adjudication Function: If mediation fails, SIDREC can adjudicate and formulate binding solutions to resolve disputes between investors and financial institutions.
• Service Supervision: SIDREC oversees the quality of services provided by financial institutions, promoting industry self-regulation and standardization, and enhancing market transparency and trust.

Members and Jurisdiction of SIDREC

SIDREC's membership includes all companies and registered members licensed by the SC and engaged in the trading of securities, derivatives, private retirement schemes and fund management in the financial markets, including banks, securities trading companies, futures trading companies, fund management companies, etc. A total of 195 members.

SIDREC deals with financial disputes related to capital market products and services, including but not limited to equities, bonds, derivatives, unit trusts and private retirement schemes.

Complaint Handling Process

Investors can submit complaints to SIDREC through various channels, including phone, email, mail, fax, or online submission. SIDREC will conduct a preliminary assessment of the complaint to confirm its eligibility and reasonableness. If the complaint is accepted, it will enter the mediation phase. If mediation is unsuccessful, the complaint will proceed to the adjudication phase, where SIDREC adjudicators will make the final decision.

Binding Nature of Adjudications

SIDREC's adjudications are binding on its members. If an investor accepts the adjudication result, they must sign a legally binding settlement agreement with the SIDREC member. However, if an investor is dissatisfied with the adjudication result, they can still seek other legal avenues to resolve the complaint.

Advantages of SIDREC’s Services

• Independence and Neutrality: SIDREC, as an independent third-party institution, guarantees the impartiality and neutrality of its mediation and adjudication processes, ensuring that investors' rights are fairly protected.
• Professionalism: SIDREC's mediators and adjudicators possess extensive financial and legal experience, enabling them to comprehensively understand and resolve investment disputes.
• Free Services: For disputes involving claims of up to RM250,000, SIDREC's services are free, reducing the cost of investor protection.

FAQs

For disputes involving claims of up to RM250,000, SIDREC offers free services. Additionally, SIDREC provides answers to common questions about claim limits, service timelines, applications from overseas investors, and application restrictions to help investors better understand their rights and obligations.

• Claim Limits: The maximum amount SIDREC can award in an adjudication is RM250,000, excluding interest compensation.
• Service Timelines: SIDREC aims to resolve all claims within 90 working days of receiving complete documentation.
• Overseas Investor Applications: Regardless of nationality or residence, overseas investors can apply to SIDREC as long as the dispute involves products or services provided by SIDREC members.
• Application Restrictions: Investors must submit claims within six years as stipulated by the Limitation Act.