MAS Proposes Grant and Legal Support for Retail Investors in Singapore

The Monetary Authority of Singapore (MAS) has released a consultation paper outlining new measures designed to help retail investors recover losses caused by market misconduct. The proposals aim to make civil compensation more accessible and strengthen investor confidence in Singapore’s capital markets.

The initiative follows recommendations from the Equities Market Review Group, which focused on improving investor participation and overall listing quality in the Singapore Exchange (SGX).

Retail Investors Face Barriers to Legal Recourse

Feedback to MAS highlighted the practical challenges individual investors face when pursuing legal action, including high legal costs, difficulties in coordination, and limited access to expertise. The regulator acknowledged that while stronger recourse options are needed, safeguards must also be in place to prevent frivolous or opportunistic lawsuits that could destabilize markets.

“Our goal is to strike a balance — to make justice attainable for genuine investors while ensuring Singapore remains a trusted and efficient financial hub,” MAS noted in its statement.

Key Proposals: Collective Action, Funding Grants, and Simpler Claims

The consultation outlines three core proposals:

• Collective Action Representation: MAS proposes allowing independent representatives to file and manage claims on behalf of investors. This aims to address organizational and funding challenges that often prevent small investors from taking collective action.
• Grant Scheme for Legal Funding: MAS is considering a co-funding mechanism to support legitimate claims and representative costs. The grants would help investors cover legal fees and analytical expenses while limiting misuse through strict eligibility criteria.
• Simplified Legal Procedures: The regulator also plans to expand “piggyback claims”, allowing investors to rely more easily on enforcement outcomes in related cases. The proposal includes removing compensation caps and easing proof requirements, reducing both time and cost barriers.

If implemented, the reforms could mark a turning point for retail investors, giving them tools to pursue compensation more efficiently and collectively.

Authorities Step Up Crackdown on “Scam Mules”

In parallel, Singaporean authorities, including MAS, the Singapore Police Force, and the Infocomm Media Development Authority, announced new measures to combat financial crime. Beginning in October, the facility restriction framework will block access to digital banking and mobile services for repeat offenders who sell or misuse their bank accounts and phone lines for scams.

The move comes after scam losses reached nearly $460 million in the first half of 2025, despite stronger enforcement. Penalties will include longer bans, fines, and potential imprisonment for repeat offenders.

Singapore’s retail trading landscape is becoming increasingly competitive as global brokers expand their footprint. Earlier this year, Interactive Brokers Launched Zero-Commission US Stock Trading in Singapore — a move that further strengthens the city-state’s position as one of Asia’s most accessible and investor-friendly financial hubs.