|
|
In the interest of protecting investors, three (3) separate compensation funds are established
and maintained by the subsidiaries of Bursa Malaysia Berhad (“Bursa Malaysia”) with the main
objective to compensate investors who have suffered monetary losses or damage under certain
circumstances, as prescribed under the relevant securities laws and regulations.
An Overview
-
What are the compensation funds established and maintained by Bursa Malaysia?
The compensation funds established and maintained by Bursa Malaysia are as follows:
- the Compensation Fund of Bursa Malaysia Securities Berhad ("Bursa Securities"), pursuant to the
Capital Markets and Services Act (“CMSA”) (previously Securities Industry Act 1983) and is applied
for the purpose of compensating persons suffering monetary loss in the circumstances as provided
under Section 152 of the CMSA;
- the Fidelity Fund of Bursa Malaysia Derivatives Berhad (“Bursa Derivatives”), pursuant to the
CMSA and is applied for the purpose of compensating persons suffering monetary loss in the
circumstances as provided under Section 167 of the CMSA; and
- the Compensation Fund of Bursa Malaysia Depository Sdn Bhd (“Bursa Depository”), pursuant to
Section 5(1)(b)(vii) of the Securities Industry (Central Depositories) Act 1991 (“SICDA”) for the
purpose of compensating persons suffering loss or damage arising from the circumstances provided
under Rule 34.01 of the Rules of Bursa Depository.
-
Who is eligible for claim under the compensation funds?
Claim under the Compensation Fund of Bursa Securities:
Persons who have suffered monetary loss (“Claimant”) as envisaged under Section 152 of the
CMSA because of:
A defalcation or fraudulent misuse of monies or other property by a director,
officer, employee or representative of a holder of a Capital Markets Services Licence who carries
on the business of dealing in securities that is at that time a participating organization (“PO”);
or
An insolvency of a PO, and the loss is suffered in respect of monies or
other property that was, in connection with the PO’s dealing in securities, entrusted to or
received by the PO, or by a director, officer, employee or representative of the PO for or on
behalf of the Claimant or another person, or because the PO was trustee of the monies or other
property.
Claim under the Fidelity Fund of Bursa Derivatives:
Persons who have suffered monetary loss (“Claimant”) as envisaged under Section 167 of the
CMSA because of:
A defalcation or fraudulent misuse of monies or other property by a director,
officer, employee or representative of a holder of a Capital Markets Services Licence who carries
on the business of trading in futures contracts that is at that time an affiliate of the futures
exchange (“TP”)
and the loss is suffered in respect of monies or other property that was, in connection with
the TP’s trading in futures contracts, entrusted to or received by the TP, or by a director,
officer, employee or representative of the TP for or on behalf of the Claimant or another person,
or because the TP was trustee of the monies or other property.
Claim under the Compensation Fund of Bursa Depository:
Persons (holders of securities account) who have suffered loss or damage (“Claimant”) as
envisaged under Rule 34.01 of the Rules of Bursa Depository in respect of any transaction
pertaining to his securities account arising from:
computer crimes involving theft or criminal damage to the computer system
theft, damage, falsification or alteration of any record or data kept within
the computer system
stolen or missing scrips which are under the physical control of Bursa
Depository whether such scrips are kept in its premises or are in transit
fire or theft of any records in any vault, premise or warehouse of Bursa
Depository where such records are to be kept pursuant to Section 59 of SICDA
professional negligence of Bursa Depository’s employees or servants
public liability
infidelity of employees through their dishonest or fraudulent acts committed by
such employees with intent to cause or sustain loss or to obtain financial gain for themselves,
wherever committed and whether committed alone or in collusion with others.
-
How are claims processed?
[for the Compensation Fund of Bursa Securities as prescribed under Part V of the Capital
Markets and Services Regulations 2007 (“CMSR” / “Regulations”), in particular Regulations 17 to 21
whereas for the Fidelity Fund of Bursa Derivatives as prescribed under Part VI of the CMSR, in
particular Regulations 27 to 31]
Claimant submits claim in writing and complete the relevant claim form :
Claim Form (for claim
against Compensation Fund of Bursa Securities),
Claim Form (for claim
against Fidelity Fund of Bursa Derivatives) and
Claim Form (for claim
against Compensation Fund of Bursa Depository). The Compensation Committee of Bursa Malaysia deliberates on the claim.
Claimant receives notification from Bursa Malaysia on status of claim.
If dissatisfied, the Claimant may appeal within one (1) month to the Securities
Commission, in regard to the claim against the Compensation Fund of Bursa Securities or the
Fidelity Fund of Bursa Derivatives. For the appeal in regard to the claim against the Compensation
Fund of Bursa Depository, the appeal is within 14 days to the Appeals Committee of Bursa
Malaysia.
Claimant collects cheque if claim is successful.
-
What is the claim limit?
For the claim made against the Compensation Fund of Bursa Securities : RM100,000 per claim
and no limit per stockbroking company.
For the claim made against the Fidelity Fund of Bursa Derivatives : RM500,000 in respect of
each TP.
For the claim made against the Compensation Fund of Bursa Depository : RM100,000 per claim.
-
When is the cut-off date for submission of claims?
For the claim made against the Compensation Fund of Bursa Securities or the Fidelity Fund of
Bursa Derivatives:
On or before the date specified in the Regulation 17 notice (for the claim
against the Compensation Fund of Bursa Securities) and Regulation 27 notice (for the claim against
the Fidelity Fund of Bursa Derivatives) not being earlier than three (3) months after publication
of the said notice.
If no notice published, within six (6) months from date Claimant becomes first
aware of the circumstances as referred to in Sections 152 / 167 of CMSA.
For the claim made against the Compensation Fund of Bursa Depository, the timeframe for the
submission of claim is guided by the timeframe for the submission of a claim under the Compensation
Fund of Bursa Securities and the Fidelity Fund of Bursa Derivatives.
Questions & Answers for Claimants
-
How does Bursa Malaysia determine the eligibility of claims from the compensation
fund?
The following will be taken into consideration:
Whether the Claimant is a person who has suffered loss in the manner envisaged
under the relevant law / regulation.
Whether the claim was in accordance with the provisions of the CMSA / CMSR /
the rules concerned.
Whether there are bankruptcy proceedings instituted against the Claimant.
Whether all facts and statements of claims given to Bursa Malaysia are accurate
in all material aspects.
-
How do I submit a claim to the Compensation Fund?
Claims must be submitted on or before the cut-off date to:
The Secretariat,
Compensation Fund of Bursa Malaysia Securities Berhad / Fidelity Fund of Bursa Malaysia
Derivatives Berhad / Compensation Fund of Bursa Malaysia Depository Sdn Bhd (state whichever
compensation fund is applicable)
Bursa Malaysia Berhad,
Enforcement Division,
9th Floor, Exchange Square,
Bukit Kewangan,
50200 Kuala Lumpur,
Malaysia
-
How soon can my claim be processed?
The Regulation envisages that the determination of a claim shall be made within a period of
six (6) months or otherwise authorised by Bursa Malaysia.
-
What are the documents required upon submitting my claim?
All documentation in support of the claim must be submitted including but not limited to:
The original documents that the stockbroking company / the futures broker has
given you, regarding your investments or the related transactions carried out in your securities
account
Your agreement with the stockbroking company
Contract notes
Receipts for securities / futures contracts
Cheque drawing records
Bank statements
To state whether any legal or court action for the said claim and if so, the
details for the same.
If you cannot produce the required documents or if further information is required from you,
Bursa Malaysia may contact you for an explanation of events or submission of further material, as
the case may be.
* Tip: The more evidence you provide will allow a smoother and faster claims
process.
-
How will I know the outcome of my claim?
Bursa Malaysia shall determine if the claim should be allowed, disallowed or allowed in part
and will inform all claimants of its decisions in writing and reasons for disallowance.
* Tip: It is therefore necessary that you keep Bursa Malaysia
updated of any changes in the information submitted, i.e. change of address, contact number,
amendments to the amount of claims.
-
If my claim is unsuccessful, can I appeal for a re-consideration?
Yes. You can submit an appeal to the Securities Commission for the claim made against the
Compensation Fund of Bursa Securities or the Fidelity Fund of Bursa Derivatives. As for the claim
against the Compensation Fund of Bursa Depository, the appeal shall be submitted to the Appeals
Committee of Bursa Malaysia.
-
In what form will the compensation be made?
All compensations will be made by cheque.
-
If my claim is successful, can I nominate a third party to accept the payment on my
behalf?
Claimants are strongly encouraged to collect payments of compensation personally.
If you nominate a third party, there must be clear authority in writing, given to the third
party. However, Bursa Malaysia shall have the absolute discretion to decide whether or not to
accept such authorisation.
-
Can beneficiaries claim on behalf of a deceased Claimant?
Yes. Beneficiaries can claim if they produce a grant of probate or letter of administration
to the satisfaction of Bursa Malaysia
|
