[World Corporate Law News] MAS Consults on Measures to Enhance Investors’ Ability to Seek Civil Compensation

World Corporate Law News provides a weekly snapshot of corporate law developments from around the globe. Here’s a glimpse of the key corporate law update this week.

1. Securities Law

1.1 MAS consults on measures to enhance investors’ ability to seek civil compensation

On October 24, 2025, the Monetary Authority of Singapore (MAS) issued a consultation paper proposing measures to enhance investors’ ability to seek civil compensation for losses suffered due to market misconduct.

The proposals are aimed at addressing practical challenges faced by investors in pursuing compensation claims and are part of MAS’s ongoing efforts to strengthen investor confidence and trust in Singapore’s capital markets.

The consultation paper outlines three key areas of reform:

• Facilitating investor coordination – MAS proposes allowing a “designated representative” to act on behalf of affected investors to coordinate and pursue legal action, thereby improving collective redress mechanisms.
• Providing access to funding – A co-funding scheme is proposed to support meritorious investor claims and cover costs incurred by the designated representative, with safeguards to prevent abuse.
• Reducing legal barriers – MAS has proposed procedural simplifications for “piggyback claims” based on prior convictions or civil penalty orders, easing reliance requirements in misstatement cases, and removing existing statutory caps on compensation.

MAS noted that these measures will make it easier for investors to seek redress where market misconduct has occurred while maintaining safeguards against frivolous or unmeritorious actions.

The consultation is open for public feedback until December 31, 2025.

Source – Media Release

1.2 ASIC Proposes to Remake Derivative Clearing Rules

On 28 October 2025, the Australian Securities & Investments Commission (ASIC) published a consultation on the proposed remake of the ASIC Derivative Transaction Rules (Clearing) 2015 (the “2015 Rules”), which are scheduled to sunset on 1 April 2026.

Key Proposals

• The remake will retain substantially the same form as the 2015 Rules, with only minor administrative updates to modernise terminology and streamline provisions.
• ASIC proposes to extend exemptive relief to clearing of derivative transactions arising out of post-trade risk reduction exercises, aligning with existing relief for multilateral portfolio compressions.
• Proposes to let transitional relief from the 2015 Rules, in relation to certain swaptions, expire on 1 April 2026.

ASIC invites industry feedback on the proposed remake. Submissions must be sent by 5 pm AEDT on 28 November 2025 to otcd@asic.gov.au. (ASIC)

Source – News

Click Here To Read The Full Article