Singapore MAS to Enhance Investor Recourse Avenues to Protect Investors with 3 Key Focuses: 1) Allow Investors to Ride Court Action or Civil Penalty for Compensation to Reduce Burden on Investors in Civil Recourse, 2) Allow Representatives (Non-Profit) to Carry Out Legal Actions for Investors to Reduce Risk of Potential Profiteering Behaviour & Vexatious Litigation (Primarily to Harass, Annoy or Cause Trouble for Opposing Party), 3) Grant Scheme to Defray Costs of Organizing Investors & Taking Legal Actions for Cases Involving Market Misconduct
21st July | Hong Kong
The Monetary Authority of Singapore (MAS) is proposing to enhance investor recourse avenues to protect investors 3 key focuses – 1) Allowing investors to ride court action or civil penalty for compensation to reduce burden on investors in civil recourse, 2) Allowing representatives (non-profit) to carry out legal actions for investors to reduce risk of potential profiteering behaviour & vexatious litigation (primarily to harass, annoy or cause trouble for opposing party), 3) Grant scheme to defray costs of organizing investors & taking legal actions for cases involving market misconduct. Announcement (21/7/25): “Measures to strengthen investor protection through enhancing investor recourse avenues – In shifting towards a more disclosure-based regime, there is also a need to consider additional measures to strengthen investor protection through enhancing investor recourse avenues. Specifically, investors should be able to seek civil recourse should there be losses suffered due to market misconduct. Currently, there have been feedback and observations that retail investors seem to face friction in commencing civil action – such as difficulty in self-organising, and finding sufficient funds for legal advice. Facilitating investors to seek civil recourse is therefore important to bolstering investor confidence, maintaining market integrity and upholding the reputation of Singapore’s capital markets. In doing so, there is also a need to address concerns of frivolous legal actions that would unduly burden the market, by putting in place appropriate safeguards. In line with the Review Group’s guidance, MAS has identified three areas of focus and will consult on proposals later this year: 1) Enabling pursuit of legal action – MAS will consult on proposals to enhance existing legal provisions that enable investors to ride on a court action or civil penalty to seek compensation. This is intended to reduce the burden on investors when pursuing civil recourse action. 2) Facilitating self-organisation – MAS will consult on proposals to allow for representatives to organise and carry out legal action on behalf of investors. This is intended to facilitate not-for-profit assistance to investors, including by organisations such as the Securities Investors Association Singapore (SIAS). MAS will consult on the criteria for such representatives, to reduce the risk of potential profiteering behaviour and vexatious litigation. 3) Providing access to funding – MAS will consult on setting up a grant scheme to defray the costs of organising investors and taking legal action for cases involving market misconduct. This aims to reduce cost barriers that deter investors from seeking compensation through civil action.”
“ Singapore MAS to Enhance Investor Recourse Avenues to Protect Investors with 3 Key Focuses: 1) Allow Investors to Ride Court Action or Civil Penalty for Compensation to Reduce Burden on Investors in Civil Recourse, 2) Allow Representatives (Non-Profit) to Carry Out Legal Actions for Investors to Reduce Risk of Potential Profiteering Behaviour & Vexatious Litigation (Primarily to Harass, Annoy or Cause Trouble for Opposing Party), 3) Grant Scheme to Defray Costs of Organizing Investors & Taking Legal Actions for Cases Involving Market Misconduct “
Monetary Authority of Singapore (MAS) – Measures to strengthen investor protection through enhancing investor recourse avenues
In shifting towards a more disclosure-based regime, there is also a need to consider additional measures to strengthen investor protection through enhancing investor recourse avenues. Specifically, investors should be able to seek civil recourse should there be losses suffered due to market misconduct. Currently, there have been feedback and observations that retail investors seem to face friction in commencing civil action – such as difficulty in self-organising, and finding sufficient funds for legal advice. Facilitating investors to seek civil recourse is therefore important to bolstering investor confidence, maintaining market integrity and upholding the reputation of Singapore’s capital markets. In doing so, there is also a need to address concerns of frivolous legal actions that would unduly burden the market, by putting in place appropriate safeguards. In line with the Review Group’s guidance, MAS has identified three areas of focus and will consult on proposals later this year:
- Enabling pursuit of legal action – MAS will consult on proposals to enhance existing legal provisions that enable investors to ride on a court action or civil penalty to seek compensation. This is intended to reduce the burden on investors when pursuing civil recourse action.
- Facilitating self-organisation – MAS will consult on proposals to allow for representatives to organise and carry out legal action on behalf of investors. This is intended to facilitate not-for-profit assistance to investors, including by organisations such as the Securities Investors Association Singapore (SIAS). MAS will consult on the criteria for such representatives, to reduce the risk of potential profiteering behaviour and vexatious litigation.
- Providing access to funding – MAS will consult on setting up a grant scheme to defray the costs of organising investors and taking legal action for cases involving market misconduct. This aims to reduce cost barriers that deter investors from seeking compensation through civil action.
Singapore MAS to Enhance Investor Recourse Avenues to Protect Investors with 3 Key Focuses: 1) Allow Investors to Ride Court Action or Civil Penalty for Compensation to Reduce Burden on Investors in Civil Recourse, 2) Allow Representatives (Non-Profit) to Carry Out Legal Actions for Investors to Reduce Risk of Potential Profiteering Behaviour & Vexatious Litigation (Primarily to Harass, Annoy or Cause Trouble for Opposing Party), 3) Grant Scheme to Defray Costs of Organizing Investors & Taking Legal Actions for Cases Involving Market Misconduct
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