The Monetary Authority of Singapore has published a consultation paper on proposals aimed at improving retail investors’ ability to seek civil compensation for losses caused by market misconduct.

Join IG, CMC, and Robinhood at London’s leading trading industry event!

The Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term Market Review Group introduced measures to increase investor participation and improve listing quality. MAS says stronger recourse options may support investor confidence.

Retail Investor Challenges Drive MAS Proposals

Feedback received by MAS indicates that retail investors face challenges in pursuing civil action. These include difficulties in self-organisation and securing funds for legal advice.

• Blueberry Markets Promotes Head of Trading to COO After One and a Half Years
• The Five Pitfalls a New Chief Compliance Officer Should Avoid in the First 3 Months
• Manchester City Star Remains Axi Ambassador Following Its Fiat Crypto Derivatives Launch

MAS also notes the need to prevent frivolous claims that could burden the market. The proposals aim to balance accessibility with safeguards against misuse.

New Proposals Aim to Ease Collective Action and Funding Barriers

The consultation paper outlines three main proposals. MAS seeks to make self-organisation easier. Retail investors can bring collective action but may struggle to coordinate or find a lead party. MAS proposes allowing an independent representative to manage and bring claims, subject to criteria preventing conflicts of interest or misuse.

MAS also aims to improve access to funding. Legal action can be expensive, requiring specialised expertise and analysis. The proposed grant scheme would co-fund legitimate claims and some representative costs, with safeguards to limit opportunistic litigation.

MAS plans to reduce legal barriers. Existing “piggyback claims” allow investors to rely on certain enforcement outcomes. MAS proposes simplifying procedures, expanding eligible cases, easing proof of reliance, and removing compensation caps.

MAS and Police Target Repeat Offenders with Facility Restrictions

Singapore authorities are introducing measures to restrict access to banking services and phone lines for “scam mules” as part of an effort to disrupt criminal networks. These networks contributed to nearly $460 million in losses during the first half of 2025.

The Singapore Police Force, MAS, Infocomm Media Development Authority, and Government Technology Agency said the facility restriction framework will begin in October. It targets individuals who sell bank accounts or mobile lines to overseas syndicates, including repeat offenders who continue applying for new facilities.

Restrictions will cover digital banking, ATM access, and PayNow, with durations based on individual risk. Authorities will also implement enhanced penalties, including imprisonment and fines. Despite a slight decline in scam losses, officials say the threat remains significant.