MAS Plans New Civil Recourse Options for Retail Investors

The Monetary Authority of Singapore (MAS) is preparing proposals to give retail investors more accessible civil recourse for stock market losses resulting from market misconduct. A public consultation is expected later this year.

MAS identified three focus areas: enabling collective legal action, supporting investor groups through representatives like the Securities Investors Association Singapore (SIAS), and providing funding assistance. Proposed enhancements include allowing investors to rely on existing court actions or civil penalties to claim compensation, and empowering not-for-profit organisations to lead legal proceedings.

The initiative aims to improve investor protection and address gaps exposed by past corporate scandals such as Hyflux, while ensuring safeguards against frivolous or profit-driven litigation.