PETALING JAYA: The Securities Industry Dispute Resolution Centre (Sidrec) received a total of 239 claims and enquiries in 2022, of which 72 have been registered as eligible disputes and 167 enquiries.
The 53% year-on-year increase in the number was due to increase in unit trust and structured products, according to Sidrec chief executive officer Sharmila Sharma.
Sidrec managed a total of 93 eligible disputes in the year, of which 31 were resolved, it 2022 annual report said.
Of the 31 resolved disputes, 12 (39%) were resolved at the case management stage, 13 (42%) through mediation and six (19%) through adjudication.
Hence, 81% of eligible disputes were resolved without the need for adjudication, compared to 88% in 2021.
Sidrec received 17 structured product-related disputes in 2022, the highest for this product category since its inception, and the claim amount for the 72 disputes received ranged from RM14 to just under RM1mil.
It expects to adjudicate the highest number of disputes in any given year in 2023. Out of the 46 cases carried forward to 2023, 13 or one-third were at the adjudication stage of Sidrec’s dispute resolution process as at end-2022.
Its dispute resolution services are free for investors with claims that do not exceed RM250,000. Under its voluntary scheme, Sidrec accepts disputes involving monetary claims above RM250,000 provided both parties agree to use its services.
Sidrec’s operations have been funded by the Securities Commission since its inception in 2011. As at end-2022, it has 195 members comprising 151 capital markets services licence holders and 44 registered persons.