PHOTO
KUALA LUMPUR -- The Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) has announced that commercial and Islamic banks offering capital market services and products will become members of the Securities Industry Dispute Resolution Center (SIDREC), as part of efforts to enhance the financial dispute resolution arrangements for consumers in Malaysia. The announcement follows the SC's amendment to the Capital Markets and Services (Dispute Resolution) Regulations 2010which took effect recently.
With the amendment, investors of capital market products and services offered by or through BNM regulated commercial banks and Islamic banks, will now have access to dispute resolution services 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.
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.
As a one stop center for the settlement of claims in relation to capital market products and services, SIDREC aims to ensure that investors have access to an independent and impartial expert dispute resolution avenue. SIDREC's services are free to investors and 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. SIDREC is an independent dispute resolution body established to resolve disputes or claims between individual investors and capital market intermediaries, who will be SIDREC's members.
It offers and operates a dispute resolution mechanism which is accessible, efficient and effective, based on the principle of fairness and reasonableness. In this regard, SIDREC will promote and facilitate the satisfactory resolution, mediation or withdrawal of such disputes and claims. SIDREC will also collaborate with the regulators of the capital market towards achieving its objectives.
The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007.
© The Saudi Gazette 2016
