logo for securites commission article in startwo, sept 30
KUALA LUMPUR: Capital market investors who have disputes with commercial and Islamic banks that provide capital market services and products now have access to dispute resolution services under the Securities Industry Dispute Resolution Centre (Sidrec).
The Securities Commission (SC) and Bank Negara (BNM) jointly announced that commercial and Islamic banks offering capital market services and products would become members of Sidrec as part of efforts to enhance the financial dispute resolution arrangements for consumers.
This follows the SC’s amendment to the Capital Markets and Services (Dispute Resolution) Regulations 2010, which took effect on Monday.
Previously, capital market investors who encountered disputes while dealing with such entities under BNM’s purview were referred to the Financial Mediation Bureau (FMB).
“The SC and BNM will work with Sidrec and the FMB to ensure a seamless transition for both the banks and investors. In this regard, investors with ongoing matters with FMB do not need to resubmit their cases with Sidrec,” the joint statement said.
Sidrec is an independent body established by the SC in 2011 for the settlement of disputes between investors and capital market intermediaries. With the inclusion of the 43 commercial and Islamic banks, Sidrec now has 191 members, among whom are also stockbrokers, derivatives brokers, unit trust management companies, fund managers, and providers and distributors for private retirement.
Sidrec’s services are free to investors. Investors can file for a dispute resolution with claims up to RM250,000. Sidrec may also provide mediation for claims exceeding RM250,000 where both parties agree.
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