Commercial, Islamic Banks To Join As SIDREC Members

KUALA LUMPUR, Sept 6 (Bernama) -- Commercial and Islamic banks offering capital market services and products will become members of the Securities Industry Dispute Resolution Centre (SIDREC), effective Monday. This is part of efforts to enhance the financial dispute resolution arrangements for consumers in Malaysia, said the Securities Commission Malaysia (SC) and Bank Negara Malaysia (Malaysia's Central Bank) in a joint statement here. This announcement followed the SC's amendment to the Capital Markets and Services (Dispute Resolution) Regulations 2010, it said. "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 through SIDREC," it added. 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 set up 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 centre 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 US$61,178 (RM250,000). It may also provide mediation for claims exceeding RM250,000 where both parties agree. For more information, can visit https://sidrec.com.my/. --BERNAMA