Compensation Fund

An Overview

1. What is the Compensation Fund?
   The Compensation Fund of Bursa Malaysia Securities Berhad is established and maintained by Bursa Malaysia Securities Berhad ("Bursa Malaysia") pursuant to the Securities Industry Act 1983 (SIA) and is applied for the purpose of compensating persons suffering loss in the circumstances described in item 3 below.
   
   
2. What monies constitute the monies of the Compensation Fund?
   The Compensation Fund of Bursa Malaysia Securities Berhad consists of, in the main, contributions by stockbroking companies which are Participating Organisations of Bursa Malaysia and contributions by Bursa Malaysia.
   
   
3. Who is eligible for this Compensation Fund?
   Persons who have suffered monetary loss as envisaged under Section 72 of the SIA because of:
   Defalcation or fraudulent misuse of monies or other property by a director, officer, employee or representative of a licensed stockbroking company.
   Insolvency of the stockbroking company.
   
   
4. How are claims processed?
   [as prescribed by the Securities Industry (Compensation Fund) Regulations 1997 ('the Regulations')]
   
   Claimant submits claim in writing or statement of claim published together with the Regulation 5 notice.
   The Compensation Fund Committee of Bursa Malaysia deliberates on the claim.
   Claimant receives notification from Bursa Malaysia on status of claim.
   If dissatisfied, claimant may appeal within one (1) month to the Securities Commission.
   Claimant collects cheque if claim successful.
   
   
5. What is the claim limit?
   RM100,000 per claim.
   No limit per stockbroking company.
   
   
6. When is the cut-off date for submission of claims?
7. On or before the date specified in the Regulation 5 notice not being earlier than three (3) months after publication of the said notice.
   Within six (6) months from date claimant becomes first aware (as prescribed by the Regulations).

Questions & Answers for Claimants

1. 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 (individual or a body of persons, corporate or unincorporated) who has suffered monetary loss in the manner envisaged in the Securities Industry Act (SIA). *may be amended from time to time.
   Whether the claim was in accordance with the provisions of the SIA and the Regulations.
   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.
   
   
2. 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,
   Bursa Malaysia Securities Berhad,
   Regulatory Issues & Legal Advisory,
   9th Floor, Exchange Square,
   Bukit Kewangan,
   50200 Kuala Lumpur,
   Malaysia
   
   
3. How soon can my claim be processed?
   The Regulations envisage that the determination of a claim shall be made within a period of six (6) months or otherwise authorised by Bursa Malaysia.
   
   
4. 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 has given you, regarding your investments.
   Your agreement with the stockbroking company.
   Contract notes
   Receipts for securities
   Cheque drawing records
   Bank statements
   
   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.
   
   
5. 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.
   
   
6. If my claim is unsuccessful, can I appeal for a re-consideration?
   Yes. You can submit an appeal to the Securities Commission.
   
   
7. In what form will the compensation be made?
   All compensations will be made by cheque.
   
   
8. If my claim is successful, can I nominate a third party to accept the payment on my behalf?
   Claimants are strongly encouraged to make and 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.
   
   
9. Can beneficiaries claim on behalf of a deceased client?
   Yes. Beneficiaries can claim if they produce a grant of probate or letter of administration to the satisfaction of Bursa Malaysia.