The Monetary Authority of Singapore has issued a consultation paper on proposals to make it easier for investors to pursue civil compensation for losses arising from market misconduct, as part of the Equities Market Review Group’s work on strengthening investor protection. The package responds to feedback that retail investors face practical and cost barriers to starting civil actions, while also aiming to deter frivolous litigation through built-in safeguards. MAS proposes three main changes. First, it would introduce a mechanism for an independent “designated representative” to coordinate and bring legal action on behalf of affected investors, subject to eligibility criteria such as having no conflicts of interest and no direct financial interest in the case outcome. Second, MAS would establish a grant scheme to co-fund meritorious investor actions and help defray the designated representative’s costs, supported by proposed grant parameters, co-payment features and a governance framework. Third, MAS would reduce legal barriers by refining “piggyback” compensation claims through clearer procedures and a broader set of enforcement outcomes that can be referenced, including default judgments, consent orders and civil penalty settlements with MAS, alongside proposed legislative amendments to ease proof of reliance in misstatement or omission cases and to remove statutory caps on compensation so courts can set damages based on the facts. Feedback is requested by 31 December 2025.

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