Commercial, Islamic banks now SIDREC members

PETALING JAYA: 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.

In a joint statement yesterday, the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) said 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. The announcement follows the SC’s amendment to the Capital Markets and Services (Dispute Resolution) Regulations 2010 which came into effect yesterday.

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 offered 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.

Previously, disputes were referred to the Financial Mediation Bureau.