The Monetary Authority of Singapore (MAS) has released a consultation paper seeking public feedback on new measures designed to improve investors’ ability to seek civil compensation for losses due to market misconduct. The proposals, announced on 24 October 2025, aim to address challenges faced by retail investors, such as difficulties in self-organisation and funding legal actions.
The Equities Market Review Group has highlighted the need to bolster investor protection as part of efforts to attract quality listings and enhance investor confidence. MAS’s proposals include three key measures: facilitating self-organisation, providing access to funding, and reducing legal barriers to civil action.
To aid self-organisation, MAS suggests appointing an independent designated representative to coordinate legal actions on behalf of affected investors. This representative must meet specific criteria to avoid conflicts of interest and ensure impartiality.
Recognising the financial burden of legal proceedings, MAS proposes a grant scheme to co-fund legitimate investor actions. This scheme aims to cover costs for the designated representative and ensure genuine claims are supported, whilst preventing opportunistic litigation through strict governance.
The proposals also seek to refine existing legal provisions, such as simplifying procedural steps for “piggyback claims” and extending their scope. Additionally, MAS suggests legislative changes to ease proof of reliance in cases of misstatements and removing statutory caps on compensation amounts.
MAS invites feedback on these proposals by 31 December 2025, as part of its ongoing efforts to strengthen investor recourse and complement public enforcement actions against market misconduct.
