The Monetary Authority of Singapore (MAS) has launched a public consultation on proposed measures to make it easier for investors to seek civil compensation for losses from market misconduct.
The regulator noted that retail investors often face challenges in organising themselves and securing funds for legal costs.
The proposals form part of the Equities Market Review Group’s wider efforts to boost investor participation, attract quality listings, and foster a pro-enterprise regulatory environment.
MAS said it aims to strengthen investor recourse while guarding against frivolous lawsuits that could burden the market.
One proposal would allow the appointment of an independent representative to coordinate and bring legal actions on behalf of affected investors.
Under current law, third parties can assist claimants but cannot act on their behalf.
The designated representative must have no conflicts of interest or financial stake in the outcome.
MAS also plans to introduce a grant scheme to co-fund legitimate investor actions and offset coordination costs.
Market misconduct cases are often complex and expensive, requiring specialised legal expertise, expert witnesses, and detailed financial analysis.
The scheme will include co-payment features and governance controls to prevent misuse.
Other proposals include simplifying procedures for “piggyback claims,” which allow investors to reference prior enforcement outcomes such as criminal convictions, civil penalty orders or settlements, default judgments, or consent orders in public enforcement cases.
The regulator also plans to ease proof-of-reliance requirements in misstatement cases and remove statutory caps on compensation, allowing courts to determine awards based on each case’s circumstances.
MAS said the measures would complement enforcement actions and bolster confidence in Singapore’s capital markets.
The consultation paper is available on the MAS website, and feedback can be submitted here by 31 December 2025.
Featured image: Edited by Fintech News Singapore, based on image by MAS
