Page 170 - SC SCAR 2023 ENGLISH Flipbook

PART 5 ORGANISATION INFORMATION
It also complements the SC’s effort to develop the capital market with integrity and ensure its employees embrace the Government’s aspiration and agenda to uphold good governance and fight corruption.
INTERNAL AUDIT
The SC’s Internal Audit Department (IAD) assists the ARC in discharging its duties and responsibilities. IAD reports directly to the ARC, which determines the adequacy of scope and function of the department as set out in the Internal Audit Charter. IAD accomplishes its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the organisation’s risk management, control and governance processes.
IAD carries out its responsibilities by conducting reviews based on the internal audit plan as approved by the ARC and the International Standards for the Professional Practice of Internal Auditing as issued by The Institute of Internal Auditors.
The main activities of IAD for the year 2023 included performing predominantly risk-based audits for the areas identified in the internal audit plan and ad-hoc review of certain functions as requested by Management. The results of the audits and activities performed by IAD were presented to the ARC for its review and deliberation. Where applicable, IAD conducted follow- up enquiries to ensure that Management’s corrective actions were implemented appropriately and provided periodic updates on the status or progress of the key actions to the ARC. In addition, IAD played an advisory role in the course of discharging its responsibilities.
IAD had also reviewed the ARC Charter to ensure it remains relevant and had sought the ARC’s feedback, which was subsequently approved by the Board in 2023.
EXTERNAL STAKEHOLDER AND PUBLIC COMMUNICATION
SIDREC is a body approved by the SC to handle capital market-related monetary disputes by investors against its members. SIDREC members are CMSL holders or
Registered Persons under the CMSA who are authorised to deal in securities, derivatives, PRS and fund management services. This includes banks, brokers, unit trust management companies, fund managers, PRS providers and distributors as well as two development financial institutions.
An independent and impartial body providing effective and affordable access to redress for monetary disputes between investors and market intermediaries is recognised as a fundamental aspect of global best practices. This approach aligns with the SC’s commitment to advancing its initiative for investor protection and empowerment.
Under SIDREC’s Mandatory Scheme for claims not exceeding RM250,000, SIDREC’s members are required to participate in SIDREC’s dispute resolution process, with services being free for investors. Under its Voluntary Scheme, where both parties must agree to use SIDREC’s expert services, SIDREC is able to accept claims exceeding RM250,000 for mediation and adjudication as well as court-referred mediation.
SIDREC actively engages with the investing public through awareness initiatives, in addition to its involvement in the dispute resolution process with both SIDREC’s members and investors. SIDREC also collaborates with its members, the SC, and various stakeholders including industry associations and self- regulatory organisations with the aim to share constructive insights and address concerns arising from the dispute resolution process, providing valuable feedback to the market, investors, and regulators.
In 2023, SIDREC received 266 claims and enquiries, out of which 49 were eligible disputes (2022: 239 claims and enquiries, of which 72 were eligible disputes). SIDREC continues to adopt a mediative approach towards resolution of cases. In 2023, 73% (40 out of 55) of the resolved cases were resolved through case management and mediation without having to proceed to adjudication.
For the year 2023, SIDREC resumed conducting its in- person mediation sessions and adjudication hearings. However, fully virtual or hybrid sessions and hearings are still conducted as and when required.
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SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023