The Financial Authority of Singapore (MAS) has launched a public session on proposed measures to make it simpler for buyers to hunt civil compensation for losses from market misconduct.
The regulator famous that retail buyers typically face challenges in organising themselves and securing funds for authorized prices.
The proposals type a part of the Equities Market Assessment Group’s wider efforts to spice up investor participation, entice high quality listings, and foster a pro-enterprise regulatory surroundings.
MAS mentioned it goals to strengthen investor recourse whereas guarding towards frivolous lawsuits that might burden the market.
One proposal would enable the appointment of an impartial consultant to coordinate and produce authorized actions on behalf of affected buyers.
Underneath present regulation, third events can help claimants however can not act on their behalf.
The designated consultant will need to have no conflicts of curiosity or monetary stake within the final result.
MAS additionally plans to introduce a grant scheme to co-fund legit investor actions and offset coordination prices.
Market misconduct instances are sometimes advanced and costly, requiring specialised authorized experience, professional witnesses, and detailed monetary evaluation.
The scheme will embody co-payment options and governance controls to stop misuse.
Different proposals embody simplifying procedures for “piggyback claims,” which permit buyers to reference prior enforcement outcomes reminiscent of legal convictions, civil penalty orders or settlements, default judgments, or consent orders in public enforcement instances.
The regulator additionally plans to ease proof-of-reliance necessities in misstatement instances and take away statutory caps on compensation, permitting courts to find out awards based mostly on every case’s circumstances.
MAS mentioned the measures would complement enforcement actions and bolster confidence in Singapore’s capital markets.
The session paper is on the market on the MAS web site, and suggestions could be submitted right here by 31 December 2025.
Featured picture: Edited by Fintech Information Singapore, based mostly on picture by MAS
